eBay product pricing mistakes

Misunderstandings about eBay Product Pricing

1. Misunderstanding of the lowest price:

Many eBay friends always focus on price when developing and optimizing products, and always think that everything will be fine if the price is as low as possible. However, many people also complain that their price is already the lowest, but there is still no sales or the sales are not large! In fact, this is the result of not studying the real rules of eBay; in addition to the expected price between buyers and sellers, the traffic of eBay is also based on the policy concept of eBay. Therefore, the policy requirements of eBay are also a very big factor in determining the traffic;

So, apart from the policy, does a low price always work? Not necessarily! Best match takes many factors into consideration. If you don’t meet many factors, even if you have a low price, your ranking will be very low when customers search normally. This requires us to understand before setting the price which factors actually come before the price when customers look at the price.

2. Misunderstandings about the company's gross profit margin:

I believe that every company has requirements for product gross profit margins, some are based on days, weeks, and months! Of course, most companies cannot have a gross profit margin lower than XX% (some companies require a gross profit margin that cannot be higher than XX%, these are the practices of some capital sellers, and will be explained in the following points); a gross profit margin that cannot be lower than XX% actually directly ties the hands and feet of development or optimization personnel in market competition in some cases, because everyone knows that gross profit margin = gross profit/sales price * 100%, gross profit = sales price-logistics cost-purchasing cost-platform commission-collection cost-return loss, it is obvious that the sales price, platform commission and collection cost are known numbers, logistics cost is a semi-known number, and procurement cost and return loss are unknown numbers, which determines that the gross profit margin required by the company is different for each company's actual operating costs, that is, each company has its own account! However, for the market, the price of competition is based on customer expectations, so pricing completely according to the company's own gross profit margin leads to pricing that is out of touch with the market, which leads to many products being developed that are not product problems, but problems with the company's planned economy;

Of course, it is a misunderstanding that the gross profit margin of some capital sellers cannot be higher than XX%. Why? Because the overall operating costs of such sellers are relatively low, so in order to occupy land and market share, they require that the company's products cannot be priced higher than XX%.

For example, the buyer's expected value is $12, but the price of this capital seller meets the requirement of not higher than XX% and is $9.99. This directly leads to the market price being pulled to $9.99, and customers will eventually get used to $9.99. Is it not possible for these capital sellers to set the price at $11.5-12.5? Is it a sin to earn an extra $2? Of course not. This is due to the company strategy of these sellers. The overall market ability of the operational staff is weak, and the training cost is too high. Therefore, these capital sellers use the screw management method. The basic operational layer does not need to use their brains, but directly executes the instructions of the senior management, and directly occupies the market by taking advantage of the company's capital and resources. When the cake is bigger, even if the gross profit margin is low, the final gross profit is not low. This is what many eBay friends are most afraid of. Even if a new product has a high gross profit margin, as long as it is discovered and sold by this type of seller, the direct price will be the kind of rule that it cannot be higher than XX%. When there are enough enclosures and enough capital, this approach is currently the most effective way!