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Market Research Tools for eBay
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Several companies offer powerful tools to assist you with eBay market research. Each compiles data from eBay listings, including most popular items, starting and final bid prices, total sales, and sell-through rates. Information is reported by both category and successful sellers within the category. They also help you predict trends and make wise purchasing, pricing, and positioning decisions for your merchandise. Each service is fee-based, ranging from fairly inexpensive to somewhat pricey. They all are a great way to do your market research homework before jumping in blind. Here are URLs to a couple of these services: Terapeak Marketplace Research http://www.terapeak.com/ (readers of this book will receive a 30-day free trial of the powerful researching software; go to http://www.terapeak.com/signup/ Janelle) SmartCollector http://www.smartcollector.com (for Antiques and Collectibles categories) eBay s Solution Center http://cgi6.ebay.com/ws/eBayISAPI .dll SolutionsDirectory
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Price and Product Positioning
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By understanding some basic product-positioning principles, you can develop pricing strategies for your products. You can employ many different ways to position your product to make it unique in the marketplace. You can employ many different ways to position your product to make it unique in the marketplace, but for the sake of our pricing discussion, let s focus on positioning a product by price. A high-end pricing strategy positions goods as distinctive and superior, and therefore worthy of a higher price tag. These items are appealing to those who are attracted to a perceived higher value and to the prestige of ownership. Conversely, a low-end pricing strategy positions the product as unique by the nature of its reduced price. To a buyer who loves a bargain, there are no truer words of temptation than we won t be undersold.
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You can even use a mix of low-end and high-end pricing strategies by creating what marketers call loss leaders. This strategy prices certain goods at lower-than-market prices to attract customers to a business in the hopes that customers will then purchase higher priced items. All three of these pricing strategies speak to the emotions and impulses of potential buyers. Use them to maximize your profit and test pricing levels.
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Note: Think about your pricing strategy when you re reading the subsequent chapters. It helps you develop other product-positioning decisions, which is a key element to advanced marketing efforts.
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In summary, you need to position your product in accordance with your own goals and the needs of the market. You want to pay close attention to profit margins and costs of business, such as sourcing, manufacturing, labor, and operating expenses. You also need to understand how your products are perceived by your existing and prospective customers. This is a key concept central to the next section.
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Perhaps the most crucial step in understanding your product is evaluating those who will buy it. The cardinal rule in sales, prospecting, and demonstrating is know your audience and its relationship to the particular item you re selling. Who are these people that browse your listing or eBay Store What do they want A window-shopping experience The lowest price The highest quality goods on the market The best service The fastest shipping To figure all this out, you need to get down to an elemental level and consider who these Web shoppers are. Four basic sets of eyes shop on eBay: browsers, comparison shoppers, prospects, and buyers. We all know the browsers who surf around eBay just for fun and discovery. Comparison shoppers are searching eBay for the best price on an item they need. Prospects know what they re looking for but need to be given a reason to buy it. And buyers, the holy grail, are ready to click that bid button and purchase the item.
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