Pricing advice needed

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foreverlookingup
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16 Sep 09 05:22:26 pm
My wife and I are relatively new to the internet retail business, only in it 6 months, and we were wondering if anyone could help us with some pricing help. What is a good markup over wholesale to use when reselling? We have our own website we started recently, and we also have an eBay Premium store. It seems to us that you have to use 2 different pricing strategies for each site. It seems that on eBay, we have to keep our prices dirt cheap because there seems to be a lot of sellers happy with making $1.00 over wholesale, or even selling less than we can buy it from the wholesale supplier for. Can someone please help?
Thank you so much..
Blessings on your day..
Dave and Peggy


Forever Looking Up LLC
The Creature Zone
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haydee
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17 Sep 09 03:53:07 am
Hi Dave and Peggy,

eBay has become an extremely competitive marketplace and this is because wholesalers sell direct to the public through eBay. So if you are competing with mostly wholesalers, you have to have competitive prices and to do this without losing money, you may either order in really HUGE quantities and direct from the manufacturers or buy liquidation. Buyers tend to pay more in other auction sites or if they're buying from a website so you were right, the pricing strategy should vary between the two sites.

I look forward to hearing more from you in the forum.

All the best! :)

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satya
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17 Sep 09 04:40:07 am
Hi Dave and Peggy,

Haydee is right, eBay has become one, if not the most competitive marketplaces online. Plus they have been going through some massive upheavals recently and with the new changes they have introduced, and the fact that there is more competition than ever, it's not as easy to make money as it used to be.

eBay still gets the most traffic of any auction sites, though, and this is an advantage that can't be ignored. Some sellers keep a few items on eBay just to direct traffic to their other stores. The key point to remember is that the internet is in constant flux. You need to work hard to keep tabs on current trends to make maximum profit. If selling on your own website yields better profit margins, then sell on your website. If you find a niche on eBay, sell on eBay. Many sellers sell on 3 or 4 different sites to get the benefit of numerous audiences.

And as Haydee mentioned, you can either order in bulk quantities to drive the wholesale price down, or buy liquidation to get items for pennies on the dollar. This is how some sellers sell their products at prices the same as or lower than wholesale and still make money on eBay.

Good luck with your business! Sing out if there's anything you need.


Satya
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impozone
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31 Oct 09 11:27:58 pm
Thanks for good advice Satya. I learned really fast that there is no way for someone like me that does not buy in thousand to complete with big eBay sellers.

So I have started looking for liquidation sites. However, I have a question. If I buy from a liquidator, do I need to mention that in my product description? Many liquidators say their products are new or self pull (never used).

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satya
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1 Nov 09 03:45:11 am
Hi impozone,

Liquidation is different to other supply methods because you will be dealing with used items as well as new. It takes time to learn how to successfully make money from liquidations - just like with any other supply method. Liquidation stock is made up of excess stock, shelf pulls and returns. This means that when you buy a liquidation pallet, it may include goods in mixed condition and it can be a bit ‘luck of the draw’ as to what you receive.

You don't really have to disclose that what you're selling is a liquidated item. You just need to specify the item condition in your auction listings - whether it's missing a part, or it's refurbished, or used.


Satya
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irene_salehoo
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29 Oct 10 12:19:51 am
Hi Dave and Peggy,

The only best strategy to determine the right pricing for your products would be through research. It will help to know your competition and how much they are selling the same product for.

Here are some articles that teach the most effective eBay pricing strategies:
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Those should give you some ideas. Hope this helps! :)


Irene

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