Profits

[joesgoldcompany]

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

[chariot_badges]

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@joesgoldcompany wrote:

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

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Yes, if WE keep doing this.

There has been entire books written on pricing theory.  

People have made life careers on this subject.

But, I will try to explain ...

The 'value' of a commodity has little to do with it's sales price.  The amount that you (seller) decide to sell your property for has nothing to do with it's value.  Value is determined when a ready, willing and able buyer exchanges goods or services to acquire your property, assuming an arms length transaction. 

If you engage in a race to the basement with your competitors, and compete only on price, you will go broke and work hard doing it. 

Don't do that.

I never list at lowest price, and I never buy at lowest price.  

Deliver the best product, in a timely manner.  Handle problems quicky and efficiently and fairly. 

If you do that, you can not and should not charge the lowest price.

This is what I do:

I have a widget to sell.  

I go to ebay and look up sold widgets.  They are selling from $9 to $25.  What's the difference between the two prices?  Nothing that I can tell.  

Acquisition cost:                        $4

Shipping and handling               4

Ebay fees, taxes                            3

Promotion                                        1

                                              ----------------

My total cost                               $12

So, I will list this at .... oh, I dunno .. how about .... $23.90 with $3.95 shipping.

OR, 29.90 with FREE shipping.

(or one of each if I have two)

If I get offers above $20 -- SOLD.  

I can hear your next question:  "What if it's not worth $23.90?"

Easy, don't list it.  Put it in the trash and go find something to sell with profit margin.

[tobaccocardyahoo]

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@joesgoldcompany wrote:

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

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Yes, many sellers do. Other sellers are more patient and will allow another seller who chooses to price lower to either make the sale or lose the sale based on other factors, like condition or their reputation.

The race to the bottom is a common hazard in online selling. Some join the race, others find another way to make the sale.

[psfhobbies]

Its a race to the bottom here.If you don't buy at a deep and I mean deep discount you cant compete. Im lucky to make $1.00 on a 10 dollar hobby item I purchase off a supplier. Rising Competition ,fees just to get views, and sales keeps the profit lower

[mam98031]

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@psfhobbies wrote:

Its a race to the bottom here.If you don't buy at a deep and I mean deep discount you cant compete. Im lucky to make $1.00 on a 10 dollar hobby item I purchase off a supplier. Rising Competition ,fees just to get views, and sales keeps the profit lower

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Oh that is sure the truth.  Which is why for myself I stopped purchasing Beads and Jewelry findings to sell on Ebay.  I just can't make any money on most of them.  I still have quite a few left.  But in the coming months they will be going too.  I'll stick with things that are at least making it worthwhile.

[bashort]

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@joesgoldcompany wrote:

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

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Not really, the fact that there was one available at $19.99 says that price is to high at this particular time, that being said it is a judgment call, there are many things to consider, is it a seasonal item out of season? I usually look at the terapeak data over time

[farmalljr]

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@iamalwaysright wrote:

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@inhawaii wrote:

I sold a item yesterday.

Including mine, there are 8 currently listed on ebay.

Mine is the highest price, yet someone bought it.

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I’m not saying that your example falls exactly into this category but I’m using it as a reference to show that having the lowest price to make the sale isn’t as significant nowadays as it was before. A lot of younger buyers consider many other things on choosing where to buy, and that’s marketing. Otherwise why else did eBay take a shot with offering AI generated listing descriptions to try and attract people? The implementation is a bit of a miss, but the principle behind it is correct. I don’t know much about this one, but I gather the Stanley Cup craze is also takes advantage of this idea. And I’m pretty sure they are far from the lowest priced tumblers.

There’s also the idea that if a product seems too low priced, it sorta makes the item seem cheap and unwanted compared to the others. Myself included. I get skeptical about the item and if I don’t have the time or effort to dig in deep and find out why an item is priced lower than others, I’ll go and buy an identical item from the seller who has a higher price for piece of mind thinking I’ll have less chance of getting ripped off. Like the saying if something seems too good to be true, it most likely is.

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First, eBay integrated AI for the purpose of search. eBay wants to automate everything and AI is seen as the future of how everything will work.

Offering AI in the descriptions has more to do with most sellers NOT using descriptions. Sellers know whatever you use in the description, has ZERO effect on search results. Been that way for a long time. The only benefit is the AI learning aspect and the very occasional buyer who MAY read the description. We've all known no one reads descriptions and buyers are more concerned with pictures and item specifics. NOT descriptions. AI descriptions are definitely robotic and not written like we would speak or describe something (at least now).  It will improve over time, but for now a seller REALLY needs to read the AI descriptions or face a possible INAD. AI doesn't always get it right.

[tobaccocardyahoo]

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@farmalljr wrote:

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d the very occasional buyer who MAY read the description. We've all known no one reads descriptions and buyers are more concerned with pictures and item specifics. NOT descriptions.

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There are not general rules of thumb when it comes to descriptions unless they exist in certain categories.

There are sellers who provide useful information in their descriptions which provide them with some advantages because they appear to be specialists in their category and more trustworthy than other sellers in the category.

Some buyers not only notice, but respond to them after the sale thanking them for the additional information. Obviously, these are categories where the buyers are collectors. not commodity buyers.

Commodity and mass market sales on Ebay are in decline. Ebay earnings reports tell us that Amazon is taking that business. How such sellers need to do business here is very different from how sellers of collectible items need to do business. Those of us who sell collectibles need to encourage collecting and the descriptions are among the tools we can use.

A description which provides some less than obvious information about a collectible item can make it bring $35 instead of $10 when it is uncommon and shorten the time required to sell it.

There are some categories where I compete with sellers who are more knowledgeable than I am, who make it clear that they are specialists. I do not copy their listings or imitate them. I position myself below them in information, stature and price. I get a smaller share of the sales of these items, and deserve a smaller share.

[meme6253]

Yes, Without a doubt, This is a growing trend & problem for to many products being sold, It devalues the item & discourages buyers

[hartungcards]

Yes, without a doubt, buyers always get discouraged when they see prices going down.

[mam98031]

Ebay has a policy for most things.  Writing descriptions has a policy.

https://www.ebay.com/help/policies/listing-policies/item-description-policy?id=4372

Adding a description to a listing use to be a requirement of writing and posting a listing.  IDK if it still is as I've never tried to post a listing without a description.

What I sell are not collectable items, but I write complete descriptions, especially with my craft books.  I get buyers all the time telling me how helpful that was.

My personal opinion of why this is a huge problem and ever grow is the Mobil App.  More and more sellers are posting via the Mobil App.  So they want to type out as little as possible using a mobile device.  I have seen this issue grow over the years as the Mobil App became more and more popular.  But just my opinion for what that is worth.

[hartungcards]

That's why many sellers are using the Sunoco App now.

[mam98031]

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@hartungcards wrote:

That's why many sellers are using the Sunoco App now.

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Thank you for the info.  I'm not familiar with the App.  I only do my Ebay stuff on my desktop or my Laptop.  Heck I don't have ANY financial info / transaction on my mobile devices.  I simply don't like the risk.  But then I'm old and I just prefer my desktop or laptop.  LOL

[isaiah53-57]

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@joesgoldcompany wrote:

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

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In my opinion the search manipulation is so heavy here, you dont have to worry too much about that - It seems he $14.99 one will never be seen as the company pushes the more expensive ones in an attempt to keep fees and profits up. Which in turn disgruntles the people with the lower priced listings wondering why buyers are willing to pay such higher prices over theirs - and which also disgruntles the google searching buyers as they see it for less elsewhere due to the high fees and search manipulation and eventually dont even consider ebay as a viable option...Just my opinion of course...

[mam98031]

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@isaiah53-57 wrote:

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@joesgoldcompany wrote:

I have a general question to anyone selling on any online platform. 

If I look up an item and see one listed for $19.99 then select sell one like this. I than proceed to list the item at a competitive price so I list at $14.99.

As this trend follows aren't we are continually devaluing a product. 

---

In my opinion the search manipulation is so heavy here, you dont have to worry too much about that - It seems he $14.99 one will never be seen as the company pushes the more expensive ones in an attempt to keep fees and profits up. Which in turn disgruntles the people with the lower priced listings wondering why buyers are willing to pay such higher prices over theirs - and which also disgruntles the google searching buyers as they see it for less elsewhere due to the high fees and search manipulation and eventually dont even consider ebay as a viable option...Just my opinion of course...

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How are you defining "high fees"?  What are you comparing the Ebay fees to?  Just their standard FVFs and Promoted Listing fees are optional and the rate is determined by the seller, not Ebay.  So how are you determining that the Ebay fees are "high"?

I ask, not because I'm trying to be difficult, I'm trying to understand.  I personally sell on multiple sites and Ebay is not the most expensive.  While I'm sure there are sites out there that charge less than Ebay, they aren't the most expensive, so I'm just curious as to what you are comparing them to in order to conclude the FVFs that Ebay charges are "high".