Start With Sold Comps, Not Active Listings
The biggest pricing mistake I see is sellers looking at what other people are asking for an item, not what it's actually selling for. Active listings are wish prices. Sold listings are market prices. On eBay, filter by "Sold Items" to see what buyers actually paid. This is your baseline. AIAL's pricing engine does this automatically — it analyzes recent sold data to suggest a competitive price, so you're always grounded in reality.
Factor in ALL Your Costs
Your selling price isn't your profit. You need to account for every cost before deciding if an item is worth listing.
- Cost of goods — what you paid for the item
- eBay final value fee — typically 13.25% + $0.30
- Payment processing — included in eBay's fee since managed payments
- Shipping costs — even if you offer "free shipping," you're paying for it
- Packaging materials — boxes, tape, bubble wrap add up
- Time — your time has value, even if you don't clock in
The Free Shipping Pricing Strategy
Here's something not enough sellers talk about: free shipping almost always results in more sales. Buyers psychologically prefer a $25 item with free shipping over a $20 item with $5 shipping — even though the total is the same. Build your shipping cost into the item price. eBay's algorithm also gives a slight ranking boost to free shipping listings. It's a win-win.
AIAL's pricing suggestions already factor in shipping costs. If you use free shipping (recommended), the suggested price accounts for typical shipping expenses.
Buy It Now vs Auction: When to Use Each
Buy It Now (fixed price) is the right choice for 90% of items. It's predictable, you control the price, and buyers can purchase immediately. Use auctions only when you have a genuinely rare or in-demand item where competitive bidding could push the price above market value. Vintage collectibles, limited edition items, and trending products can do well at auction. Everything else? Buy It Now.
Price Stale Inventory Aggressively
If an item hasn't sold in 30 days, it's time to reassess. The market has told you something — either the price is too high, the listing needs work, or demand is low. Drop the price 10-15% and see what happens. An item sitting in your inventory for months is dead money. I'd rather sell at a smaller profit than have capital tied up in unsold goods. AIAL's analytics can help you identify which items are underperforming so you can take action.
The Quick Pricing Checklist
Before you set a price on any item, run through this checklist.
- Check sold comps on eBay (last 90 days)
- Calculate your total cost (acquisition + fees + shipping + materials)
- Set your minimum acceptable profit margin
- Build shipping into the price if using free shipping
- Price 5-10% below the average sold price if you want a faster sale
- Revisit and drop price if no interest after 2-3 weeks