With Christmas closer day by day, let’s dig deeper into winning 4th quarter sales tips with Part 2 of our interview with Cardy Chung, the founder of StreetPricer. If you do not already know, Mr. Chung used to be an eBay seller as well, but he realized that his products weren’t selling very well. The only way to pass this obstacle was by changing prices to beat the competition, so he decided to write a program to do just that.
And that was the start of StreetPricer. As we mentioned before, the key to succeeding in eCommerce is pricing and strategy. Once you have your selling strategy down, pricing can make or break your business!
The main truth Mr. Chung realized after selling on eBay for so long is that the market is 100% price-driven. If you want higher sales volume, dropping the prices is the way to achieve that. But, there is another factor that arrives into play right here. You must then ask yourself – is my business profitable? It is always an optimization exercise to achieve a good balance between sales volume and profit.
As a business owner, you are going to need a minimum scale to efficiently cover your fixed overheads. Just keep this in mind – your competition is constantly spying on your pricing and sales volume. As soon as there is an opportunity to rise above you, they will move into your market and steal your customers.
The best advice Mr. Chung offers to sellers is to sell your “most popular” fast-moving items at cost, or even at some loss – because those are the items other sellers will evaluate to understand whether they want to move into your market as competition.
Seeing you “make no money” is the best deterrent for them to stay away! With your “most popular” items as a shield or façade, you then will make your profit on the items that you don’t sell too much of. But when you do sell, they are very profitable. It’s the good old 80-20 rule – make 80% of your profit on 20% of items you sell.
Now, here to help you sell these items is StreetPricer. This tool will set optimal pricing for your eBay store based on either the competitors or your rate of selling. If you have competitors selling the same products as yours, you’ll definitely need to set your pricing competitively. On the other hand, maybe you own a brand, or if you don’t have competitors selling exactly the same products, you should set your pricing based on demand and supply. StreetPricer does all that automatically for you, so you don’t have to spend hours and hours doing price monitoring and adjustments. We improve your profit by giving you the ability to raise prices automatically if your competitors are out-of-stock or if the market demand outstrips supply. StreetPricer is the secret weapon for many successful eBay sellers.
Pricing is the key to eBay sales success now, and going into 2021.Wishing you great end to your 4th quarter and a great New Year!