Have you ever asked, ”Why didn’t my auction end with a higher closing price? Someone else listed the exact same item and it sold for 3 times as much!”
Welcome to eBay’s Price Gap! You have probably noticed that someone can have the exact same item as another and end up with two totally different ending prices. You think FOR SURE an item will make you all kinds of money, only to lose $5.00, break even or not receive even a single bid.
There are many possible reasons for this…
Was Your Starting Price Too High?
One of the most obvious reasons for a poor auction is a starting price that is much too high. eBay is all about the auction experience. For many people, just the aspect of auctioning against other people for an item is addicting. People LOVE the competition of the bidding process. Aren’t most of us here addicted to eBay ourselves? It’s fun & we love to bid! We love to feel like we are getting a bargain!
Take a moment to think about auctions YOU choose to bid on. If you see a “Baby LuLu Geraniums” dress with a starting price of $0.01 and an identical one starting at $39.99, which one would you bid on?
Ultimately, a penny auction is going to draw more bidders & more attention. Many times, when you can draw in a circle of bidders watching and competing for an item, you will have no problem getting a desirable ending price. I recently had an experience where I was liquidating end of season inventory to make room for current season items. I started the auctions at a penny, and a lot of them ended more than what they were listed for in my eBay store! Sweet! 
Are Your Shipping Rates Higher Than Necessary?
We all hate paying for shipping, but it’s a part of life. More often than not, when you make a purchase online, there are shipping & handling charges included. However, some people attempt to cover their PayPal & eBay fee’s (or even MAKE money) by elevating their shipping rates. This is not honest, and very RARELY pays off. Most people simply will not bid on an auction with unreasonable shipping amounts. Use the calculated shipping option on eBay and offer free shipping on items that aren’t going to eat into your profit margin.
Reserves:
Reserves can be killers for auctions. eBay is all about auctions. People don’t want reserves and the MAJORITY will not bid on an item that has a reserve. Of course there are exceptions, such as custom-made clothing, but if you feel reserves are necessary, most likely you are spending too much on your merchandise.
Category:
Make sure you select the proper category for an item. If you don’t, people will have a much harder time finding your auction. It works out GREAT for the person who “happens” to come accross an auction in the wrong category… they may be the only bidder!
Picture:
A poor quality picture or NO picture at all, will send bidders elsewhere. It’s extremely important to provide clear, detailed photo’s, so people know what they’re bidding on.
Join me, as I show you what’s selling (or not selling) on eBay everyday!
~Jenn
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