Pricing Your Products The Right Way When Selling Online- Advise And Tips
This is the deer-in-the-headlights-moment sort of situation: how do you price the product or service you wish to sell online?
So you have stuff to sell, and every time you browse e-commerce stores online, you are shocked by the ‘lowest prices’ for the same stuff you want to sell off. There are many questions that come to the head seeing such selling gimmicks, for example-
- Just because the outlet sells stuff for cheap, do they sell in bulk and do they have plenty of sales?
- Do handcrafted items fetch higher prices than the rest?
- Are they selling it low just because it is a clearance sale?
- What does the ‘low price tag’ speak off the quality of the product?
- How does one choose the pricing index?
- What about competition and pricing?
- Does profit, labor and materials used come into play when deciding on a price?
- Will a higher price for the same item, mean death to the e-commerce store?
These questions and many more, so how does one taking into consideration the volatile market, demand and supply, pricing competition and index, go about setting the price right for an item or a product to be sold online?
The trends as of now
In most cases it is seen where sellers price fair enough online, they create or join a niche similar to what they intend to sell. For example, if you would like to sell ethnic fashion garments, you should first check with at least four to five sellers, selling something similar and calculate the mean average price for the products on display.
Is that all?
Experimenting is the name of the game here, for example, online giant Etsy, known for chic and trendy lifestyle and fashion wear experimented with new price lines and without fearing the losing of old loyal customers. What they did was to raise the benchmark on pricing a little higher than the rest for new products, and not the ones that were being sold already. The newer higher priced items sold quicker than what the older ones on the similar price points to the rival sellers did!
Research with three sites
Let’s take a look at what online sellers amazon.com, eBay and Craigslist does to make their products and items sell like hot cakes, while setting the right price to capture their target audience too.
In the case of Amazon
Amazon would allow you to use your checking account and affiliate the same to their account, for a fee of course, should your product sell off from their portal. The percentage you gain would be one different from the next; hence it would be wise to check their terms and conditions, before signing up with them.
In the case of eBay
When you host your products on eBay, once again you could opt for PayPal or your checking out to do your transactions, and the payment is sent directly to either of them. Each item you sell on eBay, there would be a small commission charged by the portal basis the ‘final value’ of sale. eBay has certain selling rules and pricing points to adhere to, and they are very strict about it, hence check with them before signing up!
In the case of Craigslist
In most cases, Craigslist doesn’t charge you a penny to sell certain items and products and even if they do, they wouldn’t charge you transaction fees as such. However, does that mean the profits come to you directly? Certainly not! There are certain legal and financial clauses by Craigslist to adhere by, basis which buying and selling on their website is allowed. Check and do your homework on the same!
Tips on selling at the right price
While we’ve given you a brief synopsis on how to set the price right across three major e-commerce giants online, here are a few quick tips to research and work on.
- Pricing between the lowest and the highest price as seen on rival websites would be the best thing to do.
- Invest in software that track prices, compare items, and bring about comparisons on pricing points at the moment in real time online.
- Pricing too high or too low wouldn’t get you the best bids to relish.
- Be very clear and honest with buyers about the condition of the product or the item being sold. Flaws and dings if any should be announced, and the pricing set accordingly.
- Check the demand and supply trends- the lesser a product in trend is listed at rival sites, the higher would be the demand, which means you can afford to sell at a higher cost than others. This could be for FMCG and durable products too.
- Consider bulk selling if possible, such concepts work wonders and sell faster. Use tags such as ‘collection’, should you be selling collectibles and memorabilia, vintage stuff, magazines, records and more. You would make your money and rid off the unwanted stuff you really don’t need.
- Create an eye-catching but honest description of the product. Make notes on the age, the versatility of the product and the functional aspects too, along with a proof read on the same and high resolution pictures from all angles of the product as well.
- For eBay and Amazon, never start bidding from the highest- bid low to attract more customers. And never use marketing gimmicks by throwing in freebies for nothing- especially with resale products. This would make the buyer suspicious!
- Set the pricing in the middle of the week, which people would surf and check through the weekend too. Remember, it is over the weekend when most of us have the time to sit and check online for a lot of stuff!
- On Craigslist, you would have to set deadlines or else customers do not believe in the product or the price you want to sell something at!
- Do make sure to make use of e-mail newsletters, SEO, PPC, social media and online coupons to give a real kick-start to your online business. Talking of coupons, do check out a wide range of online coupons and promo codes at ChameleonJohn.com and get prospective customers on board by giving them deepest discounts and the best bargains.
Finally, when talking about shipping and handling, please ensure that you are upfront with the e-commerce store and the end buyers on the same. If you aren’t going to foot the bill, the product description page should mention the needful and the pricing points should be adjusted accordingly!