Retailers listing on ebay sometimes come to the marketplace with certain prejudices – the most common one being that ebay is for selling stuff really cheap. Well that ain’t necessarily so.
ebay concentrates on title – not price.
To many new entrants to the world of ebay it comes as a surprise that the search algorithm in ebay concentrates on the title of the item – not the price. That’s very different from the catalogue based nature of Amazon and it opens up the scope to price in a manner more like the pricing on the high street.
With ebay taking that approach, it allows online retailers to price in a manner that attracts attention. Curiously on the high street we have all become very fond of things being priced one penny cheaper than the nearest pound.
That’s strange – isn’t it. But it’s all to do with how the brain processes numbers and if you’re interested in that topic have a search for topics on Anchor Pricing. We’ll revisit it at some point I’m sure.
In short £3.54 sounds like it’s 54 pence more than 3 pounds – hmmm. Whereas £3.99 sounds like the price should really be above £4 – but the kindly retailer has managed to keep it below £4. Bizarre, isn’t it. But we all fall for it – well… we nearly all fall for it.
Pricing at the 99p level drives sales.
The ebay repricer within Seller Dynamics recognises that and allows price savvy retailers to set prices across multiple listings so that they all round up to the next 99pence or 99cents.
We think that’s pretty cool – it’s a simple way to signal to buyers that you as the retailer are doing everything you can to hold the price back from where it should be. Simple, effective and rather clever.