I sell mobile accessories. Mainly everything under $10. The price difference is between $1-2. 1-2 dollar might me small amount but it's already 10-20% cheaper.
I saw some seller provide manufacture warranty for example charger, from your experience, how could they provide a warranty?
Let's assume they import it direct from china, the postage cost for any fault item might be much more expensive compare to the item price it self. Or the seller itself will responsible for any faulty product? I have no idea. Any thought regarding this matter?
I did check with my supplier, they say no warranty available for any
Do you think having a nice template in every item description will boost customer confidence to bid our item?
On some smaller priced items, my guess is the seller offers a guarantee and simply eats the cost as the price is so small.
You have to read their guarantee. Many times there are a lot of conditions.
But if they sell 100 items and get one return and if the return only costs them 5$ they just send another one.
But usually, the seller will say the original has to be returned at the buyers expense. So many times on a low priced item the buyer will just buy a new one as it will cost them about the same anyway. And they may want a different style next time.
To make a long story short, it is worth doing for low priced items as the cost is so low. SO yes, if you want to compete, I would suggest doing this.
You also have to find a way to attract people to your listings and turn that looker into a buyer.
You can do this by offering a loss leader. Meaning an item you will lose or break even money on but will drive a lot of traffic to your account.
An example would be setting auctions at .99 with either free shipping or low shipping. Then set up your seller account to offer other items of interest at checkout. This can be done through your seller preferences.
So hopefully, you can convert those loss leaders into more sales.
You have to look at the average of monies each transaction brings you. If you
sell 100 items and 50 you lose a dollar on and 50 you make 3 dollars on then you have just averaged 1$ profit per transaction or made a 100$.
I highly suggest signing on to Terapeak. What you are able to do with this service is see exactly what your competition is doing and how.
See then you can exactly duplicate what your competition is doing. You can even know how much they are making if your items are similar in price.