There are many reasons people choose to sell products online. Some people need to get rid of clutter around the house, while others enjoy the flexible schedule and entrepreneurial spirit that comes with being your own boss. Whatever the reason may be, all online sellers have one goal in common: to make money.
That being said, it can be frustrating to take the time getting or making products, listing them online, and feel like you're waiting around to make a sale. But you might be unknowingly turning off shoppers with the price of your item. Everyone knows that if you price too high, buyers might not be able to afford your item. But on the other hand, pricing too low can give shoppers the idea that your product is lower quality than your competitors. So, how exactly should you set your item price?
Don't fear - we've compiled a list of tried and true methods for pricing your products. Read on to learn more.
Check out the Competition
Maybe you have no idea how much your product is worth. Or maybe you have a definite number in mind, but it's not based off any actual data. In order to begin, you need to do a bit of market research and find out how much other products like yours are selling for.
One thing to remember is that although you can size up your competitor's listing prices, you won't always know what price the seller actually paid. Many marketplaces, including Bonanza, have flexible pricing options, so these products might sell for more or less than their listing price. A great tool that displays the difference between listing price and sale price of a product is Check a Flip. You can search for a product keyword, like "Seahawks Jersey" or "Used iPhone 16GB" and see the current prices of active listings, as well as the actual sale price of completed listings. This makes it easier to estimate what your product might sell for. This tool is more helpful for general products - the prices differ greatly for terms like "handmade bracelet."
You can also use our search filters to look for items that sold on Bonanza in the last year and get an idea of what people are paying for similar items. Visit any page on our site and find the search box in the upper right-hand corner of the page. Click the magnifying glass icon to be taken to our main search page, then scroll down to the "Refine your search" filter section on the lower left-hand column of the page. Select the "Sold in the last year" checkbox. You can also use the "Narrow your results" field to search for specific items (i.e "Antiques") to pinpoint sales in your specific area of interest.
If you're selling a unique or handmade item, it can be helpful to search for relevant keywords through Google Shopping. There, you can look for items most similar to yours and find an average of the listing prices across many selling platforms. Once you have a ballpark price range in your mind, it's time to analyze how much you can afford to sell your product for.
Now that you've got an idea of how much similar products are being sold for, it's time to decide the price of your item. There are a few things to consider when deciding on a price for your product:
Profit margin. How much money do you want to make on this product? There are many free online calculators that can help you with this - we like this one from Launch Grow Joy.
Price of acquisition. How much did you pay to get your product? If your product is handmade, how much did the materials cost? Consider also any labor costs associated with your product - in other words, if you were getting paid an hourly wage to make your products, how much would you make from each one?
Price of shipping. How much will it cost to ship this item? Will you be covering the price of shipping, or will the buyer be responsible for shipping costs? Bonanza offers many options for shipping so you can find an option that works well for you.
#protip: Create a shipping profile for fast and easy product listing. Simply select "Booth Settings" from the Selling drop-down menu. From there, select the "Shipping and Returns" tab. Then, select "add shipping profile" and you can select free shipping, a flat fee, or calculated shipping based on the weight and carrier of your package.
Making Money While Gaining Exposure
Most online sellers will tell you that you've got to spend money to make money, but that can be hard to justify when you're just getting started. One easy way of increasing the exposure that your items get without breaking the bank is by using Bonanza's advertising program. Each commission level unlocks another advertising channel like Google Shopping, the Bonanza Affiliate Program, or Bing.
Signing up for an advertising level is easy. All you have to do is select the maximum percentage you're willing to pay and factor that into your listing price. For example, if you want your item to be listed for $20 and you select to pay up to a 13% fee, you should add 13% of $20 to your price, making your actual listing price $22.60. This ensures that you will still earn $20 once the advertising commission has been collected.
Time to Adjust
You may think you're out of the woods after you've landed on a listing price, but that's not the case. It's important to monitor your sales and make adjustments where necessary. If you’re not getting traction on your item, notice that similar items with a lower price are getting purchased, or if you’re receiving buyer requests about flexible price, it might be time to experiment with your price. Keep in mind your total cost so you don’t lower your price too much and end up losing money.
Now that you've got tons of information and a pretty good idea of how to start pricing your items. Check out our other help articles for more tips on selling on Bonanza.