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Well, I fought the trend for the past couple of years, but fianlly gave in.
I raised my shipping costs dramatically and lowered my selling price in order to compete.
Let me explain.
One of the areas I have sold in for almost 8 years is video, VHS in the old days, DVDs now. I always priced the programs below full retail, and charged modest shipping, with just a little handling to cover packaging. In the past year, while the segment has grown, my sales have shrunk, to the point where I had to do something.
So I have now undercut the cheapie sellers who tack on huge s/h charges, and will send stuff Media Mail instead of Priority or First Class. The profits will come from the handling fees since I am now selling the product at cost.
I launched the first few items this weekend, and will see how it goes. I am also thinking of leaving the DVD area since the margins, even with the revised shipping (up to 9.99 from 3.95), are so paltry.
As a buyer I would probably pass my offerings up, and that means that I will lose customers, but will gain others.
We'll see how it goes.
Larry
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Let us know how it works out for you--Good luck!!
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Good for you, Larry!
I hope your formula works out for you...
It's less money in eBay greasy little hands, in any case!
Cheers
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I don't think you should have to explain this to anyone, except eBay. Best of luck to you! Too bad the eBay market is a place that forces this type of behaviour for survival.
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larry,
for what it's worth, when I shop for dvds I look at the total, bid plus shipping. high shipping doesn't bother me. of course, I'm going to buy the cheapest or at least the cheapest with good feedback.
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Larry, why not just go over to Amazon...? Let them bring the customers to you and no real competing per se. Your price is your price. They set the shipping, ususally Media Rate.
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Do you have a link to your auctions? I'm buying for Christmas now.
You can pm it to me if you want.
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Larry , just wondered it this is working for you ?? How are things going?
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Originally Posted by Blondie
Larry , just wondered it this is working for you ?? How are things going?
Thanks for asking!
The new strategy did pump up the sales for me, but I am uncomfortable doing it. Since I first posted, I have applied for and received a return merchandise authorization for most of the oddball titles I had in my eBay store. I will be closing this down, and liquidating the balance of the stock.
I have continued to have some sales on Amazon, and have lots of other stuff to sell to clean out my basement and storage area. Once that is done I will come up for air again, and decide if eBay and I call it quits or not as far as selling goes.
I am still buying on eBay since some categories offer real bargains, though others don't.
Life goes on.
Larry
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Thanks for posting about this, Larry. I've always been so against this method of selling on eBay, but in the past few weeks I've been doing a lot of buying and it truly seems to be a widening trend. I guess if I can't compete with 'em, I'm gonna have to join 'em to keep my nose above water.
What is a "return merchandise authorization"? Just curious, I don't recognize the term.
Good luck!