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Determine a pricing strategy
The most successful sellers on eBay Motors choose the best auction and pricing strategy to meet their objectives. Selecting the right strategy will lead to more bids and the successful sale of your vehicle. In general, set the starting price low to attract buyers' attention and drive market excitement. There are basically three pricing strategies to consider: Reserve Price auctions, No Reserve Price auctions, and Buy It Now listings.[See Figure: 5]
Reserve Price Auction
A Reserve Price Auction enables you to set a reserve price, which is the minimum price that you are willing to accept. This minimizes risk, because there is no obligation to sell until the reserve price is met.
- When should you use a reserve auction?
- Effective for late models and higher priced vehicles.
- Popular with sellers with little or no experience selling their vehicle on eBay Motors.
- Tips:
- Set your reserve price as the lowest possible price that you are willing to accept.
- Set your reserve price close to trade-in, as most sales on eBay Motors are between trade-in and retail. New sellers often make the mistake of pricing too close to retail; as a result, bidding excitement never gets a chance to start and their items don't sell.
- Set a low starting price to create bidding momentum as early as possible. Listings with high starting prices and an unknown reserve fare poorly on eBay Motors.
Note:If you've chosen to use a Reserve Price Auction format, you may lower your reserve or remove your reserve price during the auction to sell your vehicle quickly.
No Reserve Price Auction
In No Reserve Price Auctions, any bid at or above your starting price wins the auction.
- When should you use a No Reserve Price Auction?
- Effective for older and lower priced vehicles.
- Effective if you are looking to sell your vehicle in a hurry and getting the right price is less critical.
- Popular with vehicle sellers who are more experienced in the eBay marketplace.
- Trends to Consider:
- A No Reserve Price Auction with a high starting price that is equivalent to a reserve price will receive very few bids until the final hours of the auction. Bidding rates are generally higher for these types of auctions than Reserve Price Auctions, but a high percentage of these auctions end with no bids.
- A No Reserve Price Auction with a low starting price is for the seller who is comfortable turning a profit based on volume. This method is potentially risky, because the seller could take a loss if multiple bidders do not drive up the price. This approach, however, does drive bidding activity and almost guarantees that the vehicle will sell.
Buy It Now Price
The Buy It Now price allows you to specify a fixed sale price for your vehicle.
- When should you use the Buy It Now price?
- To price your vehicle for a fast sale.
- In a reserve or no reserve auction listing to give your buyers the option of purchasing the vehicle immediately at a fixed price.
- To show buyers that you are serious about making a deal.
- Many buyers judge the value of the reserve price according to the Buy It Now price. If your reserve price is lower than the Buy It Now price, consider mentioning that in your listing.
- Tips:
- Setting an unrealistically high Buy It Now price-like a "sticker price"-can scare away potential buyers.
- You can lower your Buy It Now price during the auction to show buyers that you are willing to sell the vehicle immediately for a fixed price provided there is a minimum of 12 hours left before your listing ends. You may also add a Buy It Now price to allow a buyer to end the auction immediately and win the vehicle-provided there isn't a winning bid.Learn more about how to revise your price.
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