Any reseller knows how challenging it is to manage their business. There is a lot to handle, from scouring for items to sell, taking photos, and answering customer queries. After all, your top priority is to close as many sales as possible.
The crucial element is setting the price of your items right. When you tag them according to the value of each one, then you won't have any problems attracting customers. Keep in mind that people always want to get their money's worth.
But how exactly do you do this? Isn't it as easy as copying what other resellers tag on their listings? The short answer is "no" as there are several factors to consider.
Why price items properly?
When people go online shopping, they first look at the price of the item. As much as possible, they want to get the cheapest one they can find among the hundreds of resellers out there.
But even when you price an item at a low cost, it is sometimes inappropriate to do so. Certain items are too valuable to be sold at a low price. This includes but is not limited to gadgets, jewelry, designer clothing, and bags.
Same goes with pricing “too high” as some items need not be expensive. Examples include non-branded clothing, accessories, small toys, plastic dinnerware, and decor.
Finding the value of the item you are selling can take time. This applies especially to vintage pieces.. You need to research and gauge the worth of the item. Otherwise, you may end up overpricing or devaluing an item. In turn, a customer might not even want to inquire about your listings.
Pricing to Earn
From researching the original value and comparing it with other resellers to factoring in the shipping fees and tax, there are factors to keep in mind in setting the price of your listings.
- Research the value of the item
Knowing the original cost may take time, but again, this is essential to knowing whether to increase or decrease your price. This is easy for branded pieces of clothing, bags, and shoes, as you can look them up on their respective websites or social media accounts.
However, for older designs, this may be impossible. The technique here is to find pieces or models closest to what you are selling. From there, evaluate how you will price yours. The other option is to search online marketplaces and see how resellers with the same items are pricing them.
- Check other marketplaces
There are hundreds of online marketplaces out there that you can visit. Poshmark, Depop, Tradesy, eBay, and Facebook Marketplace are only some of the well-known examples.
When you visit these sites or apps, look up how other resellers price items similar to yours. Do it at least five times at each site. From doing this quick research, you can average the selling price of a specific or similar item.
You may think this is time-consuming, but it is helpful. If you price the item higher than the average, people may scroll past your listing. Keep in mind that customers want to purchase something quality yet at a lower price.
On the other hand, if you price the item lower than average, potential buyers may think this is a scam,inauthentic piece, or in bad shape. This applies especially to designers, vintage, and usually expensive objects like electronics and jewelry. People may think your listing is "too good to be true." In effect, they are wary of you and look elsewhere to purchase.
- Factor in shipping costs and tax
Apart from researching the value of the item, you must consider the fees in packaging, shipping, and even state taxes.
Before packing the order, make sure to weigh it first. Then, once you have packaged it in a box, a wrapping paper or plastic, and other protective materials, weigh it again. The shipping price relies on the parcel's size, weight, and volume.
Keep in mind not to estimate the load. Doing so increases the likelihood of you or the buyer paying for additional charges because of an erroneous shipping fee.
You also need to check up on postal fees should these be necessary for you. Sometimes, there are fees or taxes to pay depending on where you live and where you will have the package delivered.
Fortunately, Mercari has a wide array of options for delivery. You can ship with the platform (the label is provided) or on your own (requires the purchase of shipping labels), offer free shipping (which allows you to be competitive) or charge the buyer for it, or use FedEx, USPS, or UPS.
No matter the mode of delivery, always have tracking information on your package and labels. It is optional to get insurance, but a good choice if the orders are fragile or expensive. Mercari cuts off the surcharge during the holiday season, so you won't have to stress about additional fees for multiple parcels.
Deciding the floor price
When it comes to pricing, it is not enough for you to set it according to its value. Sometimes, you have to keep updating the cost if a listing is getting old, and there is still no buyers interested.
Mercari has a Smart Pricing feature that automatically updates the price. It does so until the listing sells or it hits the floor price. The latter simply refers to the minimum price you allow for your item to sell. Ultimately, this protects you from losses.
The technique is to set the floor price a bit higher. In this way, you still have room for when buyers negotiate the cost as well as when you are doing promos or discounts.
When you enable Mercari's Smart Pricing, you must give two prices: the standard (starting) and the floor (bottom line) price. Only you and the platform knows about the latter, so you need not worry about this.
Afterward, Mercari's algorithm modifies the price of your listing based on demand. This is helpful, for example, when you set the floor price way below the demand for the items. The algorithm automatically adjusts this to a higher value so you won't suffer losses.
Additionally, the feature notifies your Likers of a price drop. You can do this by slashing the price to 10% lower than the original one. This sends a special offer to Mercari users who "liked" your listing.
Additionally you also get a boost to your listing. First, you must reduce the price to 5% before using the Promote Listing feature. You can have 10 of your listings promoted and reach a wider audience.
Take advantage of new automation tools.
As you focus on sourcing inventory and answering customer inquiries, expanding exposure on your listings may be something you can barely manage. Thankfully, there are service apps available like OneShop that assist you in this aspect of the business.
On Mercari, OneShop promotes your listings to other marketplaces such as Depop, Poshmark, Tradesy, eBay, and soon, on Facebook Marketplace. You also don't need to worry about selling the same item twice as this is delisted once it gets sold.
There are also new features called "Scheduled Listings," which help you prepare listings for posting at least one week in advance, while "Duplicate Listings" allows you to draft similar listings from existing ones.
When it comes to item costs, the Smart Listing Prices feature assigns different prices for the items you cross-list on each marketplace. You can save time calculating each website's fees as OneShop automatically computes these for you.
For those selling multiple items across marketplaces, you can now "Manage Shipping Labels." This means you can print all shipping labels, including the listing information and a QR code for details, through the OneShop app.
Register for the 7-day trial and enjoy the new features and conveniences that come with an automation tool. The trial is free, so you don't need to do paid subscriptions yet. Sign up today and save more time yet do more in your reselling business.