Why You Shouldn't Start an eBay Auction at 99 Cents

With an eBay auction, you set an initial starting price,me 89c in fees.
specify the postage costs, and then the item is up forI know these books weighed more than 500g, so I set
auction. If you receive any bids, then you must sell thepostage at $9.00 because I know I can get a prepaid
item for the highest bidden price at the close of thesatchel (up to 3Kg) for $9.00 at the post office.
auction (which could be your starting price if you onlyMy item ends up getting one bid and sells for 99c.eBay
receive 1 bid).eBay recommend that you start auctionscharge me a final value fee (like a sold fee) of 5c.
off at 99c as they say this encourages bidding. TheirSo my net profit at the moment is 5c.
whole fee structure is geared around this. If you startThen I get to the post office to post the item, and find
your auction at 99c, you only pay a 30c listing fee. Ifout the price of those satchels has gone up to $9.30.
you start your auction between $1.00 and $19.99 youI am now 25c in the red! (And would have been 89c in
pay a 50c listing fee.the red if my listing was one of the 54% which didn't
What eBay don't tell you is the hard truth.receive a single bid).
- 54% of items on eBay receive no bids at allAnd all I did was follow eBay's recommendations! OK -
- 23% of items receive only 1 bidI messed up on the postage, but even 5c isn't much of
- so over 75% of items receive 1 bid (your startinga profit margin!
price) or less!If I had seen those stats listed above that say that
That's not good odds folks!over 75% of items on eBay receive 1 bid or less, then I
Let's look at a real life example (yes - OK - it wassure wouldn't have set the start price at 99c.
me....)My personal view is that you should set the minimum
I decided to list a set of 3 books by the same author. Iprice to the lowest amount you would be willing to sell
followed eBay's recommendation and set the auctionthe item for. I have listed items at 0.99c, and then
start price at 99c. This incurred a listing fee of 30c.received only 1 bid on the item. I have ended up having
I also follow their recommendation to include a galleryto sell an item at a price that I thought was outrageous.
picture - that adds another 59c to my listing fee.So - I only list items with a starting price of 0.99c that I
So I am listing 3 books at 99c, and so far it has costam willing to sell for that price.