There is no business without a buyer. Buyer behavior is one of the most critical factors to look out for when trying to navigate an online store on eBay. To create a plan for a successful online business, you need to do in-depth research on buyer behavior and then conduct price optimization.
Optimal offers and price will help you clear out your old inventory, make a large number of sales, and clear out space for new products. Price optimization is vital for all online businesses. Read on to discover some tips on how you can integrate it into your pricing plan.
Know your numbers
As a seller, it is crucial that you keep track of all the numbers involved in your business. This includes the cost of shipping, the cost of returns, all expenses, and your margins. If you have already started selling, keep up with your trends in sales.
Knowing your prices and profit points will help you optimize your prices and keep up with what is good for the current market. Use these numbers to create the perfect pricing plan. They will help you understand whether you are overpricing, underpricing, or offering a useless discount.
Know your enemy
With so many listings and sellers on eBay, it is essential that you are always in the game. It is crucial that you always keep up with your competitors. Watch their prices and sales, and try to understand what works and what doesn’t.
Always keep in mind that a buyer is never going to look only at your price. They are going to search the market and compare your price to the other sellers. That is why it is vital that you keep up with your competitors and place your item at a competitive price. It is also important to keep monitoring a constant process and be flexible with changing prices.
A discount is something every customer loves, but it can sound daunting when you are a business owner. But, it does not have to be too big of a discount and can only be a small percentage of the competitive price in the market. Only 8-10% lower than the market price will make your offer more attractive to potential buyers. Larger discounts can be saved for retail holidays such as Black Friday, or whenever you really need to get rid of old inventory. For example, when your item costs $24.99, an 8% discount offer would make it $22.99.
Remember, buyers always prefer sales or cheaper versions of products, so even a two-dollar discount will make your item more appealing. Once you have decided what your lowest price is, work backward from that number. Come up with your minimum and maximum discount price and go from there. Small discounts will boost your sales without taking too much from your profit.
If you are just starting out or are feeling overwhelmed by all that you must do, we would recommend using repricing software such as StreetPricer. Once you sign up for this service, you are going to select your lowest and your highest prices. Then, the system will start to automatically adjust your product prices to make sure you are always competitive. With these tools, you can be sure your products are placed at the most optimal prices for the current market.
As you can see, price optimization is a crucial and constant process that needs to be implemented and consistently monitored. But don’t let this scare you. Once you get the hang of how everything works, the rest will be a breeze.