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Friday, November 10, 2006

What are Price Listing Strategies on Ebay!

For a newbie eBay seller, pricing will be the biggest challenge
as long as she or he doesn't make a few hard sales. Both,
pricing too low or too high are detrimental to your ebay
business as they can soon get you out of business. So what price
is the right price and how will I get the pricing right? I agree
costing is not all it takes to pricing but forms the foundation
although the 'Buy Now' price or the Reserve Price depends
entirely on your judgment of the market mood and fluctuating
demand for the specific item at the given time. This is called
the Price Listing Strategy which we will go through briefly in
this article.

 Costing the Price On eBay

Costing the price simply means adding up various expenses that
you actually incurred till you listed the item up for auction
plus those that you expect to come up later. Take into account
the cost of the product itself, the transportation cost to you,
and also do not for get your time! These are simply referred to
as cost components and some of these are tangible and some are
not. The following is the basic structure of cost estimation for
newbie sellers on eBay.

1.      Your landing cost (Includes purchase cost+ taxes+ packaging+
shipping)

2.      Holding cost (Includes Rental cost for warehouse/storehouse+
salaries lighting etc)

 3.     Listing cost; Add up eBay costs for each specific action:

a.      insertion fee

b.      final value fee

c.      Buy Now fee (optional)

d.     http://www.startebayselling.com/price_listing/ebay_categori
es.html
Listing upgrade fee (optional)

 e.     Sellers tool fee (optional)

4.      Special fees

a.      Ad format fee

b.      Motors fee

c.      Real estate fee

d.      PayPal fee

e.      All special fees are applicable only when the services are
availed. Here the final value fee is replaced by transaction
service fee which payable is due at first bid when there is no
reserve price set, otherwise payable when the reserve price is
met. All the above fees differ only slightly which is available
in the ebay website section

 5.     Marketing cost: Include your AdSense expenses+ promotional
expenses like fliers, news paper ads, telephonic promotions,
travel necessitated by marketing etc.

6.      Shipping, packing, and handling cost: Calculate this before
hand using calculator available at eBay or by availing a rate
chart from USPS or UPS.

7.      Salary: Spread the total salary cost proportionately on all
items.

8.      Interest payable: Divide the entire interest outgo
proportionately on each item.

9.      Insurance: Keep this outside of costing at your discretion.



 Note that above all fees are fixed and the only flexible ones
are your profit margins which you alternate based on judgment,
season, your urgency, salability and the amount you are looking
to make out of the sale. Getting the price calculated as
accurately as possible at the beginning would definitely put you
on a much more secure ground when you are competing prices with
your competitors. If you are selling highly competitive
products, also do look into making money through  http://www.startebayselling.com/loss_leader/loss_leader.htm
Loss Leader products.



Price Listing Strategy
http://www.startebayselling.com/price_listing/ebay_price.ht
ml
Price Listing Strategy</a> is one of the key strategies
utilized by Ebay Power Sellers. So, what are you waiting for? We
do urge you to find out more about this strategy as it can
really either make or break your ebay business. Remember, anyone
can become a Ebay Power Seller. All you need is the right guide
and a good starting foundation! So, http://www.startebayselling.com/ Start Your Ebay
Business</a> today!

Author: Francis W.Halls

About the author:
One great way of making more money on Ebay is by using a
non-physical inventory and selling it with complex, not simple,
marketing methods and sales/business models. http://www.startebayselling.com/ebay_sell_info/info_product
.htm
Ebay Information Product</a> Strategies!

              

posted by Jason M. Michaels at

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