New Resellers: Do THIS to Actually Make Sales

Are you a new reseller struggling to make sales? First of all, let me tell you that’s pretty common even for more experienced sellers. Understanding the biggest key to quick sales is crucial and I’m going to share it with you today. Do you know what it is? Pricing. It doesn’t matter how good your photos are, how many keywords you jam into your title, if you’re not pricing for the current market – you’re not going to make many sales.

So let’s talk about how to price in a way that will actually get you sales.

Why Aren’t You Making Sales?

Making sales is the entire point of any reselling business. If you’re not making sales, you’re just spending money on inventory as a hobby. An expensive, time consuming one! It’s the most frustrating thing about reselling. We all know how to go out to the store, look up which items are worth selling, take photos, list them, etc. That’s the easy part. But how do you actually make sales? Because without sales, there’s no growth, no profit, really no point to this reselling business you’re working so hard on.

Without sales, you will eventually run out of capital. You won’t have enough money left to buy more inventory, let alone pay yourself for your hard work. It’s a common situation many resellers find themselves in – too much inventory, not enough sales.

So how do you fix it?

The Importance of Pricing Correctly

Assuming you did the work and looked up comps to make sure the item you’re buying is a decent investment, the main thing you need to do when you get home and start listing your finds? Price it right. And sometimes that means forgetting what you paid.

That may sound like the worst business advice ever. I get it. You’re in it to make a profit. But the market doesn’t care what you paid for it. You don’t get to decide what to price an item that has competition, sorry.

I’ve been reselling for a long time, but even though I know what I’m doing most of the time, I still struggle with pricing. Why? Because we, as resellers, hand pick each item, take the time to take great photos, and then list the item. It’s almost as if we have a personal commitment to each item and an attachment to what we paid for them.

The problem here is that it can truly hinder your ability to make sales. Competitive pricing is crucial to moving your inventory and your overall business health. If you’re constantly spending money on new inventory and not selling enough to have the cash flow to not just buy more inventory, run your business, and pay yourself? Then your business isn’t doing so hot and that’s a huge bummer.

How to Price Items as a Reseller (the right way)

Now that you get that pricing is super important to making sales, let’s talk about how to price. But first a disclaimer. There are always going to be situations where the following advice doesn’t apply. In fact, you may decide you don’t want to take my advice at all and that’s totally fine.

There’s no scientific method to how to price, but I will say that taking these general steps will point you in the right direction.

  1. Forget what you paid: That’s right. I already said: the market doesn’t care what you paid. What you paid isn’t relevant to what it’s worth. If you paid $10 for a shirt that sells for $15, you don’t get to price it for $30 and expect to make a sale.
  2. Look at the competition: What are people currently selling that item for? Make a mental note.
  3. Look at the solds: What has that item sold for recently? How does it compare to the active listings?
  4. Consider the sell through rate: Divide the number sold by the number listed. 50 sold and 100 listed? That’s a 50% sell through rate. For items with a higher sell through rate (75% or higher) you can probably be a little less competitive. For items with a lower sell through rate (under 40%) you’re going to have to be really competitive with pricing.
  5. Price at or lower than the competition: If most people are priced at $25, go for $24 or even $20 to possibly make a faster sale.
  6. Audit your prices quarterly: Every quarter, go check on items that have been sitting for a few months and haven’t sold. The market fluctuates with trends, seasons, etc. and you want to make sure your item is priced right for the current market. Not last season or last year.

I’m so serious about all of the above. If it’s hard and you’re cringing while taking a realistic look at what your item should be priced at, it’s ok. I cringe too. Hopefully it’ll get your item sold and help you make better buying decisions in the future.

If you found this helpful and you’re a newer reseller struggling to make consistent sales each month, check out my course the Reseller Roadmap. I go over things like sourcing inventory that will actually sell and more to help you actually make sales consistently!

My goal is to help new resellers get to $2,000/mo or more per month part time by creating a healthy, streamlined, reselling business that doesn’t take up all of their time. Click here to learn more about the Reseller Roadmap.

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