| A better option might be using eBay's Buy It Now (BIN) feature, which enables you to add a fixed-price option to your auction listings. With BIN, you indicate both an initial starting price and a fixed Buy It Now price; if a user bids the BIN price, the auction is automatically closed, with that user the high bidder. BIN is a great option if you have a lot of auctions featuring the same item ” especially if that item is somewhat of a commodity, with an easily predictable selling price. For example, if Star Wars DVDs consistently sell for $12, and you plan on running a hundred of them for auction over the next month or so, you would set a BIN price of $12 on your item. When a buyer finds your auction, he or she can purchase the item immediately (without waiting a week or so for the auction to close) by choosing the Buy It Now option. The advantage to you is that you generate revenue faster than if you had to wait for the full auction cycle to run.  | The BIN price is active only until the first bid is placed (or, in a reserve price auction, until the reserve price is met); if the first bidder places a bid lower than the BIN price, the BIN price is removed and the auction proceeds normally. |
When is BIN not a good idea? When you have a rare or collectible item of which you're not sure of its true market value. Set the BIN too low and you cheat yourself out of potential revenue; in this situation, it's better to let the auction run its course and see where things end up. You activate BIN on the Sell Your Item page. Just enter your BIN price into the Buy It Now Price box. And remember ”your BIN price should be higher than your starting price. The Absolute Minimum When it comes to determining item pricing, keep these points in mind: -
When you do your research, you'll better know what starting price at which to list your products ”and a have a pretty good idea of the final selling price, as well. -
The cheapest way to research item pricing is to search eBay for completed auctions of similar items. -
There are a number of paid services and software that generate sophisticated research reports ; the most popular of these are ndale Research, AuctionIntelligence, and DeepAnalysis. -
Your pricing strategy determines the initial bid price for your item ”set too high a starting price, and you'll turn off potential customers. -
You always have the option of setting a low initial bid price and a higher reserve price ”or of letting customers purchase your item at a fixed Buy It Now price. |
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