Yes, indeed, some good advice abounds. Though I am a newbie myself, I can sympathize with your confusion over the nonsensical bidding wars.
My boutique has not gone live on eBay yet, as I quickly realized I had a lot to learn before I jumped in. Learn from the mistakes of those who have gone before you, and the message boards are a wonderful place to start. It takes some real effort, to overcome ones' learning curve, but there is no lack of people out there willing to help in the community.
I will share with you my own confusion over the same kind of situation. I added a new item to my inventory, and was doing my market research, and learned there were numerous identical items out on the auctions, with a wide range of starting bid prices. So, being that I was in no hurry to lose my investment, to aid my marketing efforts, I simply added all these “competitors” to my watch list, to see what would happen over the course of the auctions. My conclusion is…there is absolutely no rhyme or reason to the bidders actions. I deduced that the bidders on one of these auctions must have been “clueless” that there were so many identical items out there, as one hotly contested auction ended at well over $18.00, while there was another BUY IT NOW item posted for $18.99? Though this week another sold for less than $4. I paid $8 for my item. I will keep it for myself, before I sell it at a loss. And this is my advice to you. Do your market research, look what active auctions are bringing in. Check completed listings for similar items that SOLD. Factor in what you can “stomach” selling the item for, and begin your bidding at that price. If there is a glut of competition out there selling the same item at well below what you would be willing to accept, than let them take the loss. Market research sometimes proves that it is nothing but a crapshoot. What is the point in you expending your listing fees, if you don’t plan on making a profit? Remember, you are in business to SELL and profit, not to simply spin your wheels listing, selling and shipping inventory.
I recently got a reality check myself, as I decided I was going to post books for sale at Half.com, since there are no listing fees, which is a real incentive for low return items, such as books. As I began plugging in my ISBN numbers, I was astounded that many of these books were selling at .75 cents. How the heck can anyone make money, when selling items at .75 cents? Ones' shipping material to mail the item could cost that alone? Yes, you are paid for the shipping cost, in the sale, but not the MAILER itself. Where is the incentive to part with these books on those terms? Now, admittedly, I LOVE shopping at Half.com as a BUYER, and just purchased an eBay education, and new business start-up library of 16 books, from two sellers, and my grand total came to $100--that was including the shipping! Though, I will confess, I later suffered some pangs of remorse, when confronted with the reality of what these bargains mean for the seller. Same case, when I won an auction for a handbag at .99 cents. I KNOW what it takes to post a listing, and this gal barely recouped her costs to list the item. I see the risk involved. So, you won’t find me selling many items at a 99 cent starting bid, unless the item is meant to be a teaser to get people in to view my other items. This is when you utilize those low starting bids.
I’ve recently been reading, “Turn eBay data into dollars” by Ina Steiner, and though this book is intended for the serious eBay business, the newbie can come away with a lot of gems of advice as well. He speaks in depth about the “opinions” of when your auction ends, and its’ bearing on success. He adds, “each seller must analyze his own sales data, to determine if there is a pattern to his shoppers behavior.” (Taking the time to research the sales activities of your competitors is the obvious alternative for a new seller.) Not everyone works 9-5, and as more and more shoppers discover eBay, and you factor in a worldwide audience, in numerous time zones, the idea of having a “prime time” is fading. People shop online seven days a week, 24 hours a day. Adam Ginsberg, a Titanium Powerseller, states, “He consistently sells POOL TABLES on Christmas Day on eBay.” Sometimes, the real sales data, contradicts what you might assume would be the case.
Hold on to your unsold item for a while. You have 90 days to relist it, and be credited your listing fees. Do more research on what the competing items are selling for. Watch the auctions. I’ve decided I won’t list my $8 tote bag for any less than that. I will keep it myself before I expend money and energy listing the item and taking a loss. And remember, sometimes, shoppers do only discover the item you have listed by accident, because they viewed something else you have listed, and clicked on over to the other item through your Auctiva scrolling window, or via a storefront. They didn’t even know they wanted IT, until they saw your listing. I’ll say it again…it appears to be a crapshoot, from where I am sitting, despite all the efforts at analysis, all these eBay experts engage in.
Best wishes in overcoming your “cluelessseller” status, though inquiring minds wish to know…Will you still be using this “Handle” in the community, when you are here advising other newbies as a WHIZ? ;-)
LDCdesigns
