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When setting your item pricing on Ebay, you will need to consider several things. If this is to be an on line business then you need to make sure that your pricing is competitive but also makes you a profit. If you are simply selling items you no longer need, then pricing is not quite so critical, although of course you will want to make as much as you can no matter what the reason for selling on Ebay.

A good quick way to get an idea of what an item is worth, and what it may sell for on Ebay or any on line auction site is to look at other items already on sale that are identical to your own. This will tell you if auctioning an item is worth it in the first place. If you are just selling one item you already have an advantage over a commercial seller on Ebay, as they have to work to a profit margin and you do not, so can accept a lower selling price than they can.

Hopefully you will find similar products to your own. You now need to examine the sale items within the area you want to sell and look for those whose sellers have a high positive feedback. This means they are doing things right. They will be a good example to you. Although they are your competition, they are also providing you with a free tutorial.

Have a look at their pricing. Can you match it? If they are much cheaper than you have to be, to make a profit, you may want to reconsider. Can you buy more cheaply than you are already, perhaps buy in bigger bulk to bring your cost price down so you can be competitive. Buyers on eBay are also in the main educated as to how the system works and will look at pricing as a factor in the first instance. If your start price is not in the ballpark it is possible your item will not even be looked at.

Remember this is an auction site. So unless you are working on fixed, buy it now items there will always be a risk of an item selling for a low price. Can you afford this to happen? If not, stick to buy it now so that you get what you expect for the item. it is a delicate balance between starting an auction low enough to encourage bidding, but not so low that you make a total loss. it is fine starting an auction for one penny, but remember that may be all you make out of the transaction. Far better to put your start price at the lowest price you will accept.

You also need to make sure any costs such as postage and packing are included in the right sections. How much are the competition charging for this? Can you do it cheaper than the competition? Buyers look at this as part of the total price of an item, adding the win price and carriage charge together to work out if it is actually worth getting off the sofa and going to the shop to buy the item instead of buying it via eBay. In addition, if you haven't worked out the post and package charges, this will possibly cut into your item profit.

Lastly, if accepting payement by paypal, remember they will charge you for the transaction and this too will cut into your profit.

What you set your pricing at is of course up to you, but please do remember the pitfalls.

Learn more about this author, Mike Mccarthy.
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