eBay Pricing Strategy

eBay Pricing Strategy


As far as your eBay pricing strategy is concerned, it is important to know the fair value of your item. This will ensure profitability. Your buyer will also be satisfied with the price paid.  An easy way to get a feel for what would be considered a fair price is by using an Advanced Search to check through the “Sold” Listings.  This will show what a comparitive item sold for previously.  You have another way to check if your price is in the ball park. You should always check what current sellers are selling, while determining their eBay pricing strategy.  This will give you a good working model to base your pricing structure on so that your sales are optimised.


Online buyers are often bargain hunting or already have an idea of the price range they are prepared to pay for an item.  If you a greater bargain than elsewhere, your sales will increase. However, if your price is in the midrange for the item yet you offer combined or reduced shipping or other benefits, this will improve your sales figures.  If your price or your shipping charges are too high, buyers will probably look at your competitors for a better bargain. Your eBay pricing strategy should definitely included that factor too!


There are various types of searches on Ebay but the most used search is the default ‘Best Match’ search.  This search type also takes listing fees and shipping costs into account.  You need to make sure that your eBay pricing strategy provides for that too! Both the price and shipping charges should be reasonable.  As long as your seller rating is relatively high and your price and shipping is fair for the item you are selling, you should stay visible in the searches.


In addition to your normal auction-style listings you can also make use of the reserve price auction.  This allows you to set a low starting price to improve visibility but the reserve price ensures that you sell at the right margin. Reserve price auction works very well for rarer or high demand items. In turn, this means the buyer finds fair value and you still reach your demand price.  The site fees are still applied when the item is listed as per Ebay’s standard terms and conditions.