Diving into the data
Pricing Distribution on eBay
As a seller, when you first list a new product on eBay (or any other marketplace), it can be a bit tricky to estimate the most competitive price. Pricing is also one of the most important factors buyers take into account when deciding to buy a product on eBay.
Here are some insights about how prices vary in some of the most popular categories on eBay and one of the most universal garments: women’s jeans, and men’s jeans. This will give you some ideas for what to consider when making a pricing decision.
We analysed the listings in the jeans categories for 2 weeks in September-October and 8 weeks in November-January to get more information about how price is distributed and how it changes over time. We were interested in covering the seasonal effect of particularly busy dates for e-commerce and sales in general – Black Friday and Christmas – and comparing the sale season with a potentially less busy sales period.
We looked at listings from 2404 sellers in the Women’s Jeans, and Men’s Jeans categories that had listings on-sale throughout the period.
17-22% of listings were new by the end of each week compared to the beginning of the week
It is well known that eBay is a dynamic marketplace, where the products offered change over time, but just how much do they change? How many listing stop being sold from one week to the next, either because they sell out or because they are delisted? How many new listings are added each week?
We looked into the eBay Jeans collections and found that, in the period examined, 17-22% of listings were new by the end of each week compared to the beginning of the week. We also found that at the end of the week, 19-25% of listings had been added.
We found a slight decrease in the percentage of listings that were delisted or sold out after the Christmas holidays as well as a decrease in new listings appearing. This might coincide with people taking time off to enjoy the holidays, but also with a decrease in purchases after the holidays.
Average listing prices
To continue to analyse pricing, we also looked at the average listing prices in the period.
We can see price increases at the beginning of December and then a general decrease during the holidays and in January.
This may reflect people keen to get their online Christmas shopping done early to take account of delivery times, causing a boom in prices in early December, then a drop off once most people have completed their online Christmas shopping and carrying on into the January sales period leading to a further squeeze on prices.
How prices are distributed across eBay listings
We wanted to look deeper into what drives pricing on eBay, so we divided the listing into price buckets to look at what percentage of listings are in each bucket.
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We can see that the majority of eBay’s jeans through our analysis period were in the £10-100 range, with several in the £1-£10 range and very few in the £1,000-£10,000 range. When we dug out these listings, we found that the very “expensive jeans” were listings were several jeans were sold at once.
In detail, here is how the number of listings varies in each bucket:
Further, these are the average prices in each bucket:
take into account the price bucket for your listings when thinking about how frequently to review your pricing
We can see that depending on where you price your jeans the price fluctuates week-to-week in very different ways. It is therefore very important to take into account the price bucket for your listings when thinking about how frequently to review your pricing, to make sure you do not end up getting out of step with other sellers at your price point.
How to price your products on eBay
look at how the top sellers in your category are pricing equivalent items
As a seller, simply looking at the average price of products in a category, is not always the best guide for how you should price your listings. This is because, as we have shown, categories can contain a wide range of product in different price buckets, so simply choosing the average of the whole category will be unlikely to give you a price that best reflects your products.
Instead, it is better to find similar listings in a related price bucket to inform your pricing decisions. To make sure you are pricing your products competitively, it is a good idea to look at how the top sellers in your category are pricing equivalent items as this will give you a good idea of what price most customers are happy to pay.
Get your pricing just right with ListSmart
Choosing the right prices for your listings can make a big difference to your click-through rate and sales. The ListSmart app can demystify and simplify the pricing process, helping you to get your prices just right for the maximum impact on your eBay store.
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