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Internet selling - low prices do not always work!
By fred | March 19, 2008
I get a big kick out of selling stuff on my eBay store, but there are some interesting lessons that I have learned.
Recently EBay slightly lowered their listing fees, especially if you have a store - now it is only .03 cents to list and maintain a item for a month - cheap, that includes a picture of the item. However they raised the selling fee to a whopping 12 1/2 percent of the selling price. NOT the S & H fees. so many, including myself, raised our S&H fees and lowered our prices to save both the buyer and the seller from being hit with all the fees. Not always working. In other words if we were selling a necklace for $5.00 (eBay selling fee over .60 cents) and a S&H of $3.50 we lowered the price of the Necklace to $3.00 and raised the S&H to $5.50. Problem is folks didn’t realize that it was done to save overall cost, in this case 12 1/2 % of $2.00 is .25 cent saving. They just figured it was a cheap item, not the same item that we charged more money for - and didn’t buy.
Found out it would be better to raise the price and pass on the higher eBay fees, funny folks don’t seem to care about price, if they like it they buy it and if you overload the S&H trying to save them money they do not understand, folks think you are trying to rob them with oversized fees for shipping.
Lesson learned, merchandise is interesting, figured I was smart as hell about that, having spent a lifetime running my European food and beverage importing and distributing company, but selling on the Internet is another type of merchandising far removed from those days.
Love to hear any experiences you have had buying or selling on EBay, Amazon, etc. Uncle Fred
Topics: Internet Selling-eBay-Amazon-Others Discussion! |
March 30th, 2008 at 4:00 pm
I have heard that changes to take place in May will have a very negative effect on E-bay sellers. Does anyone know if these are the changes Fred mentioned, or are there to be others?
March 31st, 2008 at 11:42 am
Not quite sure what you heard Rick, the only huge event I know of is the recent one where eBay raised their fees for selling to 12 1/2 percent. They did give a small reduction to eBay stores, now it only costs .03 cents a month to list an item, this includes a picture.
They have a new hot shot CO, so any thing can happen, we shall just have to see.
Uncle Fred
April 3rd, 2008 at 2:12 pm
The recent eBay fee increase & feedback restriction has generated a growing protest boycott during the past 6 weeks, and is gaining strength. An all-out boycott of sellers has been called for May 1st.
As more and more sellers pull out, fewer buyers seem to be buying. AND, the remaining buyers are becoming increasingly unreliable. Reports of buyer scams and non-payments are now rampant in chat rooms. We have had a successful eBay store for 5 years and never had a buyer problem until now. We have had 4 “non-pays” in the last two weeks. They screw up the listing until we get them reported to eBay and get re-listed.
The poor economy may be another driving force in the decreasing volume of sales. Food and gas buying is more important now, and “decrecenary spending funds” are shrinking fast.
Have you noticed a drop in sales Fred?
April 3rd, 2008 at 2:20 pm
…..and furthermore, I’m listing items at ridiculously low prices and still not selling. Like a U.S. Mint 1968 proof coin set currently not selling at .91 cent face value. ( item # 380011462082 ) Further proof???
April 3rd, 2008 at 3:59 pm
Dear J.D. This week has been a slow week, however I am not too sure I would list it as sellers discontent. Last week was the biggest week I every had on eBay with my store. I also talked to several of my wholesale suppliers this week. They both said that it is always slow right now due to tax time. So many folks wait to the last minute to file and then realize that they have a tax bill to pay, right now so do not play with eBay. Before getting too worried I would wait until eary May when tax time is over.
I seldom do auctions anymore, just wait for folks to come to my eBay store. I am not looking to get rich just have fun and it is far cheaper and easy to sit and wait for customers than spend money for a auction that is only for one week then you have to re list and repay the higher fees. With my store it only cost me .03 cents per month per item.
I think the reason I am so successful is that I have so many items on eBay, I how have almost 900 items including coins in my store and will have a thousand or more in a month, yes inventory control is problem but I have worked that out. To me selling on the Internet is like a bunch of folks all with blindfolds in a large dark room. If you have enough items in your store, they are bound to stumble over something and buy it. If you only have a few items in the store fewer folks find it.
At any rate, at $15 a month for a basic store fee, plus .03 cents times 1,000 items = $30.00 for a total of $45 a month in fees to list and sell to the entire world to me is a bargain. I am doing around $1,500.00 a month and really do not wish to do any more as at the age of 78, it would be too much work. For that reason I am starting to buy more expensive jewelry, rings, CZ bracelets stuff that will sell for $10 to $50 not just $5.00 costume jewelry. I have developed some fantastic sources, auctions of bankruptcy etc, so I can still have super bargains for my costomers.
Again, to me the biggest trick to selling on eBay is you have to have something no one else has of very little of, —- or a heck of a lot of items so folks will at least find something you are selling. It costs a few bucks to have a big store like mine but making money was never easy or cheap.
I worry more about getting too much business than less, I love my life now, love this BLOG and talkng to folks, having fun, so I am comfortable now, that is O. K. with me.
Regards, Uncle Fred