What Price Do I Start My eBay Auction/BIN?

The never ending debate at auction starting price.

There is a never ending debate at which is the right price to start their auction or buy it now (BIN) listing.  Many will say $0.99 with a reserve and others will say start it at a price you’re willing to sell it for.  Ultimately you want to start it at a price that will make you happy.  If you’re in a spot where you just want to get rid of an item then you will start the price differently than if its a high priced item and you cannot lose money on it.  There are many factors that I use to determine which price I will use to start my auction.  The name of my game is SPEED!

List at $0.99 (Auction) – I will only start my auctions at this price if i’m willing to let it go for that price or if I absolutely don’t care what it sells for.  Also if I know for a shadow of a doubt there will be a bidding war I’ll start it at this price.  You can also set a reserve price but that will cost more money.  This option is rare for me as usually electronics and tools will sell for a higher price.  I used to solely do auctions and list at this price but it was not profitable for me at all.

List $0.99 with Reserve (Auction) – RARELY will I list items with a reserve just because it costs extra money to use that feature.  Plus I feel that reserve auctions turn off buyers.  Buyers want their item and want it now, or they want to know definitely that they’ll potentially get the item after the listing ends.  If the reserve price isn’t met then the auction doesn’t sell.  This should only be used if you are willing to sit on the item potentially for a little bit and spend a few extra dollars on listing fees.

List at Lowest of Sold Listings (BIN) – I will search eBay’s Sold Listings on their filter tool when I search for comps. This option is under the filter link in the upper right hand corner of your phone or in the lefthand side of your screen on a computer browser (see bottom of snip above).  I will take an average of the sold listings and then I will look at current active listings and determine what the lowest price is.  I check both types because I want to make sure the sold listings match the items that are listed.  Sometimes people will inflate the listings for some reason.  If the lowest prices match what I’m willing to let it go for then usually I’ll beat the lowest price by $1 or $0.50.  I want to get rid of my items as quickly as possible so I can buy new auctions.

List Below Lowest of Listed Prices (Auction) – For my higher priced electronic or tool items I will start it at a price a little lower than the lowest buy it now price.  The reason for this is I want to excite people to bid on the items and drive the price up.  For example I sold an iPhone 6 for $304, but I started that auction at $275.  If I lost the item for that first price I would’ve still been happy.  Starting auctions at $0.99 seems to be the myth that everyone wants to do.  Its ok to start auctions at a higher price.

List Above Lowest Price Item (BIN) – I will start items a little higher than the lowest priced items if I’m willing to sit on the item.  For example if the lowest listing is $10, then I might list my BIN listing at $11 or $13.  Usually I will take a chance and hope to make a few dollars more.  If after a few listing turnovers if that item doesn’t sell then I will mark it down in my store’s markdown manager to try and move it.

The name of the game for me is moving my items as quick as possible.  I’d rather sacrifice a few dollars to get rid of the item verses sit on it for months.  If I get rid of product fast I can invest in new boxes as quick as possible.

-Chris

LiquidationOH@gmail.com