| A loss leader is a special offered at or below the | | | | your at-home eBay business. Offering a 1-cent listing is |
| seller's cost and widely promoted to attract customers | | | | a risk. You may lose money on the 1-cent listing item, |
| into the store. The concept is often used in retail to get | | | | however, you may make money on other sales. |
| customers into the store, and as a consequence of | | | | Potential customers may bookmark your store and |
| being in the store, the customers purchase other items | | | | return later. Many sellers use this strategy on items |
| that bring a profit to the seller. There is a method to | | | | that aren't selling, or that they can purchase locally on |
| the madness - sellers have a strategy in mind when | | | | sale.Consider using the loss leader, or 1-cent listing as |
| offering milk for a penny, or a free loaf of bread with a | | | | your advertising costs. 1-cent listings drive bidders to |
| $10 purchase. This concept can be used on eBay to | | | | your store. Penny listings make the bidding exciting and |
| draw customers into your store. | | | | many times, the final price of the item is higher than |
| Sellers offering 1-cent listings are using the loss leader | | | | your original buy it now price. Many sellers on eBay are |
| strategy. I am not talking about the unethical 1-cent | | | | afraid to run 1-cent listings, so I have an advantage |
| listings that have $18shipping for a 3 ounce item. I am | | | | over the competition. If the item actually sells for a |
| referring to legitimate 1-cent auctions that sellers use to | | | | penny, at least you will have purged it from your |
| attract customers into their store. Grocery stores | | | | inventory and will receive another positive feedback |
| frequently use the loss leader concept. They lure | | | | point. |
| customers into the store with 1-cent items knowing | | | | Learn more about eBay selling by visiting eBay Selling |
| that the customers will purchase other items that are | | | | Coach, and the eBay Coach's free seller discussion |
| highly profitable. | | | | forum. |
| You might be thinking that this technique is too risky for | | | | |