It's been a long time since our last entry, Part 5: Shipment - Intricacies of the Global Market
, but today we return with our CCG Market Guide series. Today, I'm talking about one of the topics most commonly asked about.
How much I should sell for?
That's the million dollar question right?
I will continue under the assumption you have done your research, so by now you should at least know a ballpark price for your cards. As a general rule, if you can list for a price that cut the competition (count shipment too) and make a profit, it's the easiest and faster thing to do.
Someone interested will buy your item over anyone else and your item will have an higher visibility in the search results.
A few things to keep in mind*:
- For stupid as it might sound, interesting item sold too cheap, will make people suspicious. I know right? But it's basic psychology... People will start wonder why it's so cheap and start looking at every possible thing that might ring a bell of alarm. Or reach out to you asking all possible question to be reassured. Why you should go through that while earning less? Cheap is fine, too cheap is not.
- Very High price, au contraire, will sort the opposite reaction people will start thinking there's something special/high quality in your item and might want to buy it over someone else listing it for a cheaper price. While this might look tempting, avoid this. You'll leave one of your buyer with a really bad taste in their mouth when they realize there's nothing special about the lot they just bought, potentially losing any future sale from him.
- For cheaper items a "trick" way older than most of us is the "0.99"... While we all know about it, it still works, because it's just how human mind works... if you see 2 items listed one at 19.99 and one at 20, you are more likely to buy the first, because the left digit make it so the perceived price is closer to 10 rather than 20, even if it's just not the case.
- For your best stuff instead the Prestige pricing works best, that means using rounded numbers 80, 270, 500, 1200, etc For high-end products, where you’re not trying to sell value, the prices are processed quicker because they’re driven by feelings of “do I want this item”, as opposed to, “is this item good value for money?”
- Fragment pricing. As already mentioned for the best way to optimize shipping for lots, by fragmenting price the customer is more likely to buy multilpe lots, rather than one giant one. For example 10 lot's priced at 10$ looks much more affordable than 1 lot priced 100$, even though they're the same price.
This is just a head start but there are whole books written about the art of selling, so you are encouraged to learn more and find the way that works best for you.
* Note: These rules don't apply to everyone, because there are always exceptions and very smart buyers around, but they do apply in most cases.
Once you have figured out how much you want to net from an item sale, it's time to do the math...
Apply to your price a 14% increase to cover eBay (10%) and Paypal (~4%) fees. Do the same to the shipping cost, since they DO charge fees on that as well.
At this point, assuming you are selling in your local currency, you are good to go... but what happen if you are a German guy selling on US marketplace?
You have to keep in mind currency conversion... but not the real and current one... no, that would be too easy... you have to keep track of PayPal currency exchange ratings... and if you are wondering, yes they are WAY worse... It's almost legalized robbery... As the time of this writing 1$ US is worth ~0.86€ for the civilized world... for Paypal Organized Crime & Co. 1$ is worth 0.837€ .
Yes, you heard that right... For every 1000$ of net sales, you are going to be robbed of 27€... Just for fun...
So keep this well in mind when you make your math for your final pricing, for either the item and the shipment - especially the shipment - since this is a fixed cost for you. If you are selling in another currency the best suggestion I can offer is keep track of currency exchange values and only do the currency conversion on PayPal once in a while when you find a good moment for your currency value.
One last tip about pricing... if your cards have enough visibility and market in the UK marketplace, specially if you are located outside of UK, it would be smart to do auctions here. 1£ is worth more than 1€ and definitely more than 1$, we all know this, but the point is, when you bid on a UK item, you have to bid in £ and people do often forget that and just look at the digits.
I have seen this many times... the same item can finish an auction at 23$ (19,81€) on US marketplace and at 23£ (26,31€) in the UK one. While on a single sale might not be too much, 30% difference (so it is the current change) quickly adds up. The reverse of this is most of the time you don't get the same visibility on UK, even by using the paid added visibility in US, so you have no guarantee.
Also worth noting that handling different listing in different marketplaces is time consuming, more that it is already to handle them on one, so you have to be really committed to make this a work rather than a passion.
A friend from US once told me: "You are crazy, I think you have some sort of addiction... if I were not in the US I would never started collecting all these CCGs in the first place... You really show commitment to do that from Italy" ...and you know what? He is damn right... It's a big commitment getting into this market in Europe (either as a buyer and especially as a seller), but if you take your time, do your research and plan well, it can give you a lot of satisfaction, all while "playing around with your cards" :)
Our CCG Market Series
Part 1: Intro
Part 2 : Where are the cards ?
Part 3: eBay - Introduction
Part 4: eBay - How to Sell
Part 5: Shipment - Intricacies of the Global Market
Part 6: eBay - Pricing