eBay competition between sellers is quite intense, situations may arise where a seller sells a product below the price you purchased it from the manufacturer. How can you possible cope with selling your own product at that low price? It is evident that strategic discretion is required in facing such fierce competitor. Therefore, in this write-up, we shall be giving you 5 tips, which would be sufficient in facing your competition’s lower prices on eBay.
- Wait For the Product to Sellout: When a retailer starts selling products at discounted prices, which are below manufacturers’ supply cost (cost price), it is either he or she is trying to generate running capital by clearing off old inventory, or selling at that price to eliminate competition. In the above possible cases, you should be patient and wait for the products to sellout, or wait for him to encounter enough losses, which will propel him to push the product prices back to equilibrium.
This would work if and only if you were certain that the competitor is selling below cost price; if he is not selling below cost price, it will be advantageous to renegotiate with your supplier or manufacturer, and get your supplies at cheaper cost prices.
- Beat Them in the Shipping Department: It is very important to tackle fierce eBay competition with free shipping of purchased products. This offer encourages customers and online shoppers not to look further for lower prices. Free shipping would not take more than $2 if you were sending the product within the state or country. You can also use online shipping vendors and enjoy their nice discount deals and offers.
- Offer Gifts to Customers: Everyone loves gift especially during this holiday season, when everyone need to give a gift to someone close to them. Gifts always come with perceived values, which are always higher than the actual prices. For instance, if a competitor is selling his iPhone 6S at the price of $350 with free shipping, while you sell at the price of $400 with free shipping and a free iPhone 6S case. eBay shoppers may tend to have a perceived value of a phone case to be higher than $50 and tend to patronize you, when the actual cost price is below $7.
- Offer top-notch customer services: Product prices are not the online factor that determines sales; customers have a side of them that wants to be valued and treated nicely. If a customer is more comfortable buying from you, he or she will not mind spending a couple of extra dollars purchasing even though you competition sells at cheaper prices. To build this kind of relationship with a customer, you will need to offer them a sound return policy, answer questions on your page, and offer fast feedback that will assure them that you are contactable.
- Make you listing stand out: Good product description, keyword rich description, good reviews, attractive product photos, product brand information, clear features and detailed listing are paramount on eBay search ranking. If you listing is perceived to be more descriptive, relevant and authentic than your competition whom sells at lower prices, you may still rank higher on the search page result, and it will also lead to higher conversion rate.
In all, these five tips are meant to light up the fire of continuous struggle and never giving up spirit within you. If you will diligently follow them, we believe you can still sale your products amidst fierce price competition.