by Maxwell Payne

Created on: March 30, 2009

How to figure out what price to charge when selling item on Ebay.

Knowing what price to set for an item you sell on Ebay can mean the difference between making a sale and having paid listing fees with no sale to show for it.

There are a number of things to consider when setting a price for an Ebay sale or auction.

Buy now, auction style, or both?

Ebay allows sellers to sell items in an auction style format, highest price wins. But they also allow users to select a Buy Now option which allows an item to be purchased for a set price. Some sellers choose to offer both options, which allows potential customers to get an item at a set price or take a stab by bidding on the item at a lower price.

Demand for item.

Is what you are selling in demand? If you are selling something that isn't likely to be searched for you may have trouble selling the item. If the item is high in demand or a rare item you can command a higher starting bid or price, but if the item is common, you may have to set your price lower to get an edge on the competition.

What do similar items cost on Ebay and other sites?

Before listing your item, you want to make sure you are offering it at a competitive price. This means your starting bid or buy now price should be competitively priced against similar items.

Browse Ebay to see what the same or similar item is selling for, aim to make your price slightly below that. Also consider the condition your item is in. Compare the prices of items in a similar condition to yours to get a good idea of what the going price is, say for a used MP3 player.

Also check to see what the price of the item new would be in stores or other online shops. If you set your price higher than a new item price, you'll likely lose out as consumers will seek out the best price.

Most sellers will price their items slightly lower than similar condition and model items. Unless your item is one of a kind or rare, you should always be able to compare prices before choosing your selling price.

Consider fees and shipping.

Ebay charges upfront fees for listing items and charges additional fees for special features such as extra images, bold and highlighted listings, and more. You are charged on an invoice whether or not the item sells on Ebay. Consider carefully how much you are willing to spend on listing fees and shipping and set your price accordingly.

While you want to be able to make some money off your item, if you price the item higher just to recoup expenses, you may drive away potential buyers.

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