💰 Pricing Strategy
Price wrong, profit wrong. Pricing is where most resellers leave money on the table—either pricing too high and watching items sit, or pricing too low and giving away profit. This guide covers the data-driven approach to pricing that maximizes both sell-through rate and profit margin.
📊 Quick Reference
The Golden Rule: Sold Comps Only
The #1 pricing mistake is looking at active listings. Active listings tell you what people are asking. Sold listings tell you what people are paying. These are often very different numbers.
How to Research Comps
- Search your exact item — Brand, model, size, color, condition
- Filter by SOLD — On eBay: check "Sold Items" box. On other platforms: look for "Sold" filter.
- Last 90 days — Recent data only. Prices from 2 years ago are irrelevant.
- Match condition — NWT comps don't apply to your GUC item.
- Note the range — Find low, median, and high sold prices.
- Price at median — Or slightly above if your photos/description are better than average.
💡 Pro Tip: If you can't find exact comps, broaden your search (different color, similar style) but adjust expectations. No comps at all? That's either a goldmine or a warning sign—proceed carefully.
Platform-Specific Comp Research
| Platform | How to Find Sold | Data Available |
|---|---|---|
| eBay | Filter → Sold Items | 90 days, exact prices, dates |
| Poshmark | Filter → Availability → Sold | No dates, shows sold price |
| Mercari | Filter → Item Status → Sold | Shows sold price |
| Depop | Limited sold visibility | Use eBay comps instead |
| Grailed | Filter → Sold | Good data for streetwear |
Platform Fees: Know Your Numbers
Every platform takes a cut. If you don't factor fees into your pricing, you're lying to yourself about profit.
| Platform | Seller Fee | Payment Processing | Effective Total |
|---|---|---|---|
| eBay | 13.25% (most categories) | Included | ~13.25% |
| Poshmark | 20% (over $15) | Included | 20% |
| Poshmark | $2.95 (under $15) | Included | $2.95 flat |
| Mercari | 10% | 2.9% + $0.50 | ~13% |
| Depop | 10% | ~3% | ~13% |
| Facebook MP | 5% (shipped) | Included | 5% |
| Grailed | 9% | 2.9% + $0.30 | ~12% |
⚠️ Important: Fees change. eBay's fees vary by category (sneakers are 8%, musical instruments are 6.35%). Always check current fee structure before pricing high-value items.
The Profit Formula
Before you list anything, run the numbers. Here's the formula:
Profit Calculation
ROI = (Profit ÷ Total Cost) × 100
Real Example Calculations
Example 1: Clothing on Poshmark
ROI: $29.65 ÷ $6.35 = 467% ✓
Example 2: Electronics on eBay
ROI: $53.60 ÷ $50.50 = 106% ✓
Example 3: Bad Deal (Don't Do This)
ROI: Negative. You lost money. This is why you run numbers BEFORE buying.
ROI Targets by Strategy
Your target ROI depends on your business model:
💨 High Volume / Fast Flip
Lower margins, faster turns. Works when you can source cheap and list fast. Think bins, bulk lots, clearance racks. Volume makes up for thin margins.
⚖️ Balanced Approach
The sweet spot for most resellers. Sustainable margins without sitting on inventory forever. Good for thrift sourcing, estate sales, garage sales.
💎 Premium / Specialty
Longer hold times, higher expertise required. Vintage, designer, collectibles, niche categories. You're being paid for knowledge and patience.
💡 Pro Tip: Don't mix strategies randomly. If you're doing high-volume, don't suddenly sit on a $5 item waiting for $50. Either commit to the flip or don't buy it.
Pricing Psychology
Pricing isn't just math—it's psychology. Use these principles:
Charm Pricing
Prices ending in .99 or .95 feel cheaper. $29.99 feels meaningfully less than $30, even though it's a penny difference. Use this for items under $100.
Round Numbers for Premium
For luxury/premium items, round numbers ($200, $500) feel more confident and high-end. Charm pricing on a Louis Vuitton bag feels cheap.
Anchor High for Negotiations
On platforms where offers are common (Poshmark, Mercari), price 15-20% above your target. Buyers feel good "winning" the negotiation, you hit your number.
Offer Pricing Strategy
Your target price: $40
List at: $48 (20% above)
Accept offers at: $38-40
Result: Buyer feels they got a deal, you hit your margin.
Free Shipping Illusion
"Free shipping" converts better than "$X + shipping" even when the total is the same. Build shipping into your price when possible, especially on Poshmark where shipping is already included.
Seasonal Pricing Calendar
Timing affects price significantly. The same winter coat sells for 2x more in October than April.
Seasonal Strategy
- Source off-season: Buy winter coats in March when nobody wants them. Pay less, store until fall.
- List 4-6 weeks early: Halloween costumes should be listed by early September. Winter coats by mid-September.
- Price premium in-season: Don't be afraid to price higher during peak demand.
- Liquidate end-of-season: If it didn't sell in-season, slash prices and move on. Don't store for next year (usually).
The Price Drop Schedule
Stale inventory kills profits. Here's when and how to reduce prices:
| Days Listed | Action | Reasoning |
|---|---|---|
| 0-30 days | Hold price | Give it time, refresh listing weekly |
| 30-45 days | 10% drop | Boosts search visibility, tests lower price point |
| 45-60 days | Another 10% | Getting serious about moving it |
| 60-90 days | 15-20% drop | Accept lower margin, free up capital |
| 90+ days | Breakeven or donate | Opportunity cost of capital exceeds holding |
⚠️ Exception: High-value collectibles, rare items, and seasonal goods may be worth holding longer. A $500 vintage item with no comps is different from a $30 shirt that just isn't selling.
The "Send to Watchers" Trick
On eBay, when you drop your price by at least 5%, eBay notifies all watchers. Time your price drops strategically—a Friday price drop notifies watchers heading into the weekend shopping window.
Pricing Mistakes to Avoid
- Pricing based on what you paid: The market doesn't care what you paid. Price based on what buyers pay.
- Emotional attachment: "But I love this item!" doesn't make it worth more. Be objective.
- Ignoring fees: That "$50 sale" is really $40 after fees. Factor this in BEFORE listing.
- Racing to the bottom: Don't auto-match the lowest price. Your photos/description might justify higher.
- Never dropping prices: Stubbornness ties up capital. Dead inventory is dead money.
- Pricing too low initially: You can always drop prices, but raising them looks bad.
- Forgetting shipping: That $15 profit disappears fast if shipping costs $12.
- Ignoring condition: Your "good" condition item shouldn't be priced at "excellent" condition comps.
Multi-Platform Pricing Strategy
Different platforms have different buyer behaviors and fees. Use this to your advantage:
Higher Price Platforms
Poshmark, Grailed, 1stDibs
Buyers expect to pay more, but also expect quality listings and fast shipping.
Volume/Deal Platforms
Mercari, Facebook MP, OfferUp
More price-sensitive buyers, but lower fees can mean similar net profit.
Cross-List Pricing
- Same price, adjusted for fees: If you want $40 net, price $50 on Poshmark (20% fee), $46 on Mercari (13% fee).
- Or same list price: Accept that Poshmark's higher fees mean less profit, but potentially faster sale.
- Track which platform sells: If Poshmark consistently sells faster at same price, the fee is worth it.
Tools for Pricing
| Tool | Purpose | Cost |
|---|---|---|
| eBay Terapeak | Historical sold data, trends | Free with eBay store |
| Worthpoint | Antiques, collectibles pricing | $25-50/month |
| ResellMode Calculator | Profit/fee calculation | Free |
| BOLO lists | Know what's worth picking up | Varies |
| Google Lens | Quick ID and price check | Free |
ℹ️ Remember: No tool replaces experience. The more you sell in a category, the better your pricing instincts become. Track your data, learn from what sells fast vs. what sits.
Related Guides & Tools
- Profit Calculator — Run the numbers before you buy
- ROI Calculator — Calculate return on investment
- Research Tools — Find comp prices fast
- Sourcing Guide — Find items worth flipping
- Seasonal Calendar — Know what sells when