4 Pricing Strategies Every Reseller Should Know

Pricing can be tricky even for experienced resellers. Price too high? Your items could sit for months, or even years. Price too low? You might miss out on profit. So how do you decide how to price items so that they sell for maximum profit?

Honestly, there are different pricing strategies when it comes to reselling and finding the sweet spot depends on what works best for you, your business, and your goals. It’s not going to be the same for everyone, as easy as that would be.

So let’s break down the most common pricing strategies, when to use them, and the pros and cons of each.

Start with Comps

You can’t price an item properly if you don’t understand its value. That’s where comps (comparable listings) come in. Comps give you an idea of what buyers are actually paying for items so you’re not just guessing. 

The best platform to run comps is eBay, but if you’re selling on another platform you can try on there too. However, keep in mind that eBay tends to be the most helpful as far as seeing clear, recent comps so I use it even though I sell on Poshmark too.

Not sure how to run sold comps? Here’s how to search sold listings on eBay to help price your items.

Strategy #1: Pricing Low for Quick Sales (My Favorite)

Many sellers like to price their items in the middle of the market, but I’ve found that pricing low works better for 90% of my items. Why? Because most buyers want a deal, and pricing competitively often gets my items sold faster. In fact, I often make quick, full price sales with this strategy!

When This Works Best:

• For common items or items with a lot of competition.
• When you want to boost your sell-through rate and free up space for new inventory.
• When your cost of goods is low, and you don’t need to squeeze every last dollar out of each item.
• When you don’t have time or don’t want to send lots of offers or run sales.

How to Price Low Effectively:

1. Start with Sold Listings: Look at sold listings on eBay to understand the range of what buyers have actually paid.
2. Check Active Listings: See what your competition is currently listing the item at to understand how your listing will compete in the current market.
3. Price Near the Lower End: Find the lower end of the active listings (but not necessarily the very lowest) and price your item there, as long as it’s still similar to sold prices.

For example, if the sold listings for a Nike hoodie range from $15 to $25, and active listings currently range from $18 to $30, I’ll aim to price mine around $18-$20. This keeps my item competitive while still reflecting what buyers have historically paid.

Why This Works:

• Buyers looking for a deal will see your price as low compared to others.
• Pricing low means your listing is less likely to be skipped over for a cheaper option.
• You’ll get more sales at your full asking price without sending discounts or offers.
• Buyers may just purchase it right away rather than “like” or save it hoping for an offer.

The Downside:

If you run a sale or send offers, your item may be discounted further, possibly below the lowest sold price. While this can make it a great deal for the buyer, it may eat into your profit. To avoid this, use sales, offers, and discounts carefully.

Additionally, some sellers insist that pricing low will scare buyers away because they think something is wrong with the item. I think this CAN be true, but usually isn’t. If you’re pricing ridiculously low, then yes, you might scare buyers away. But if you’re on the lower end of competitive, you shouldn’t run into that problem.

Strategy #2: Pricing High with Offers or Sales

Some resellers prefer to price their items high and then use offers, discounts, or sales to entice buyers. This strategy gives you the flexibility to negotiate while making buyers feel like they’re getting a great deal.

When This Works Best:

• For items with higher perceived value like high-end clothing or designer items.
• If you have room to store items and don’t need to sell them quickly.
• When you have time to regularly send offers or start sales

How to Price High Effectively:

1. Run Comps: Look at sold listings to understand the range of what buyers have actually paid for similar items.
2. Choose a Target Price: Decide the price you’d be happy selling the item for based on the comps.
3. Mark It Up: Inflate the target price by 20-30% (or based on how much you plan to discount). This markup allows room for offers or sales.
4. Frequently Discount: Regularly send offers to buyers who like or watch your item, or run sales to encourage purchases.

Example: If sold comps show that similar designer purses typically sell for $150, list yours at $200. Send offers to interested buyers or run percentage off sale to boost sales while still making a profit.

Why This Works:

• Buyers see the discount and feel like they’re getting a good deal, even if the final price is close to market value.
• You have plenty of room to negotiate without cutting into your profit.
• Some items may sell at full price which makes you more profit on those items.

The Downside:

• Most items won’t sell at full price since it’s higher than your competition.
• It may take longer to sell compared to pricing low.
• You may miss out on sales from people who want to buy now instead of waiting for an offer or discount.

Strategy #3: Pricing High for Rare, Unique, or High-Value Items

When you have rare, collectible, or high-value items, pricing high and waiting for the right buyer is often the best strategy. This approach lets you test the market and adjust based on offers and demand.

When This Works Best:

• For items with limited comps, such as vintage, rare, or one-of-a-kind pieces.
• When you’re willing to hold onto the item for a while to maximize profit.
• For high-demand items where buyers may be willing to pay a premium.

How to Price High for Rare Items:

1. Check comps: Look at sold and active listings to gauge potential demand.
2. Set a High Initial Price: Start 30-50% higher than your minimum acceptable price to allow for negotiation.
3. Highlight Features: Emphasize the item’s rarity, condition, and any unique details in your listing.

Example: You have a rare vintage leather jacket with limited comps, but similar ones have sold for $250 with no other jackets currently available. List yours at $350 to see if there’s buyer interest, and adjust based on offers or views. From there, you can always lower your price, but give it a chance to sell at this higher price for a while first.

Strategy #4: Middle-of-the-Road Pricing 

Middle pricing is seems like one of the most common strategies among resellers. Sellers set their prices around the middle of the market, hoping it will be “just right” for buyers. But here’s the problem: most resellers are at this middle price! There’s no competitive edge in either direction either with the lowest price or with sending crazy discounts. Simply put, your item can get lost in the crowd.

When This Works Best:

• For items with steady demand and limited fluctuation in prices.
• When you’re confident the item will sell eventually without heavy discounts.
• For sellers who prefer minimal adjustments and don’t want to run frequent sales or offers.

How to Price in the Middle of the Market:

1. Run Comps: Look at sold listings to find the range of what buyers have actually paid.
2. Evaluate Active Listings: Check the current competition to see how many similar items are priced in the same range.
3. Set Your Price Near the Market Average: Choose a price around the middle of the sold comps and active listings.

Example: If sold listings for a pair of Levi’s jeans range from $20 to $40, and active listings are priced between $25 and $50, you could price yours at $30-$35 to stay aligned with other sellers.

Why This Strategy Can Be Tough:

• Too Much Competition: When there are 30 other sellers pricing the same item in the same range, your listing is easily overlooked.
• Not Enough Room for Effective Sales: Middle-range pricing leaves little room to offer good discounts. A 10%-15% discount isn’t exciting enough to convince buyers to make a purchase.
• Slower Sales: Without discounts or a strong edge, items can sit longer than expected compared to low or high pricing strategies.

Why Some Sellers Stick to This Strategy:

• It feels “safe” because it avoids pricing too low or too high.
• It requires less active management since the price is set to be fair without needing frequent offers.
• Works decently for items with steady, predictable demand and minimal competition.

The Downside:

• You’re competing with every other seller pricing their items in the middle.
• Discounts like 10%-20% are often not enough to generate excitement.
• If the item isn’t unique or high in demand, it could sit for a long time.

Common Pricing Mistakes to Avoid

When it comes to reselling, pricing isn’t about what you want. It’s truly about what buyers are willing to pay. Whether we like it for not. Here are some of the most common pricing mistakes that can hurt your sales and profits:

1. Pricing Based on What You Paid or What You Want

This is one of the most common (and costly) mistakes resellers make. Just because you paid $10 for an item doesn’t mean you can sell it for $30 if the market value is only $15.

Why this is a problem:

• Buyers don’t care how much you spent on the item.
• Pricing too high because you want to make a certain profit often leads to items sitting unsold for months (or longer).
• For 99% of items, the market decides the price (not you)

What to do instead:

• Always check comps to see what buyers are actually paying for similar items.
• If you overpaid for an item, accept the mistake and price it competitively anyway. Holding out for an unrealistic price only costs you time and storage space.

2. Not Considering the Sell-Through Rate

Sell-through rate is the percentage of items sold compared to the total number of active listings. It shows you how quickly items are selling and helps you avoid getting stuck with inventory that takes months to move.

Why this is a problem:

• If an item has a low sell-through rate, even pricing it low may not lead to a quick sale.
• Ignoring sell-through rate means you could be buying and pricing items that will sit in your inventory for a long time.
• Without factoring in sell-through rate, you’re more likely to price items based on unrealistic expectations.

What to do instead:

• Check the sell-through rate by comparing the number of sold listings to the number of active listings. For example, if 10 similar items have sold in the last 90 days but 50 are currently listed, the sell-through rate is only 20%—a warning sign the item may take time to sell.
• Consider pricing aggressively for low sell-through items if you want to move them faster. Alternatively, avoid sourcing items with poor sell-through rates in the first place.

2. Pricing Too Low Without a Profit Margin

It’s tempting to price low to make quick sales, but if you’re not careful, you could end up losing money.

Why this is a problem:

• Platform fees, shipping, and sourcing costs can quickly eat into your profits if you don’t calculate your minimum acceptable price.
• Discounting too much or running constant sales can push your price below what’s profitable.

What to do instead:

• Determine your break-even point before listing items. This includes factoring in your cost of goods (COGS), fees, and shipping.
• Leave room for occasional discounts or offers while still ensuring a profit.

3. Ignoring Fees and Expenses

Fees and expenses might seem small individually, but they add up quickly! They can really eat up your profit if you’re not paying attention.

Common fees to consider:

• Platform fees (e.g., eBay, Poshmark, Mercari)
• Payment processing fees (PayPal, credit card fees)
• Shipping costs (even if the buyer pays, you may have packaging expenses)
• Your time (listing, sourcing, and shipping all take time and effort)
• Your gas for sourcing, dropping off packages, etc.

What to do instead:

• Always factor these costs into your pricing and minimum acceptable profit margin.
• If an item’s profit is too slim after factoring in fees, it may not be worth buying to sell.

4. Sticking to One Pricing Strategy for Every Item

No single pricing strategy works for every item. Pricing low for common items may be ideal, but pricing high for rare or unique items could yield a better profit.

Why this is a problem:

• Applying the same pricing approach to all items can lead to missed opportunities for profit or faster sales.
• For example, pricing a rare item too low may leave money on the table, while pricing common items too high can result in slow sales.

What to do instead:

• Be flexible and adapt your pricing strategy based on comps, item type, demand, and your profit goals.
• Consider experimenting with different strategies and tracking your results to see what works best for different types of inventory.

By avoiding these common mistakes, you’ll not only improve your pricing strategy but also increase your chances of consistent, profitable sales. Pricing isn’t about what you want—it’s about understanding the market and making informed decisions.

Conclusion: Choose the Strategy That Works for You

There’s no “one-size-fits-all” pricing method, but by understanding comps and testing different strategies, you can find what works best for your business. For me, pricing low for most items helps me sell quickly and consistently, but pricing high for rare or high-value items gives me the flexibility to maximize profit. Try different approaches and see what helps you reach your goals!