All Guides

Pricing Strategies Guide

How to price your items for maximum profit and fast sales

Research Before You Price

Never guess at pricing. Always research what similar items have actually sold for—not what they're listed at.

How to research sold prices: - eBay: Filter by "Sold Items" to see actual sale prices - Mercari: Check the "Sold" tab on similar listings - Poshmark: Look at "Sold Listings" in search results - Google: Search "[item name] sold price" for cross-platform data

What to look for: - Average selling price across multiple sales - Price range (high and low) - How long items typically take to sell - Condition impact on price - Seasonal pricing variations

Pricing Formulas That Work

The 3x Rule (Minimum): Your selling price should be at least 3x your cost to account for fees, shipping, and profit. Example: $10 cost → $30 minimum selling price.

ROI-Based Pricing: Calculate your desired Return on Investment. Most resellers aim for 50-100% ROI minimum. Formula: Selling Price = Cost × (1 + Desired ROI%) + Fees + Shipping

Market-Based Pricing: Price based on current market conditions: - Below average: Fast sale, lower profit - At average: Normal sale speed, normal profit - Above average: Slower sale, higher profit (works for rare items)

Time Value Pricing: Factor in how long you're willing to hold inventory. Quick-flip items can have lower margins; long-term holds should have higher margins.

Competitive Pricing Tactics

Price Anchoring: List slightly higher than your target price, then offer "reduced" pricing through offers or sales.

Odd Pricing: $47 feels significantly cheaper than $50 psychologically. Use .99 or .97 endings.

Bundle Pricing: Combine slow-moving items with popular ones. Buyers love perceived value.

Seasonal Awareness: - Winter coats sell best Sept-Dec - Fitness items peak in January - School supplies in August - Holiday items 1-2 months before the holiday

When to Lower Prices: - After 30 days with no interest - When market prices drop - To free up capital for better inventory - Seasonal items approaching off-season

Factor In Platform Fees

Every platform takes a cut. Here's what you're actually keeping:

| Platform | Fee | You Keep | |----------|-----|----------| | eBay | 13.25% + $0.30 | ~86% | | Mercari | 10% + 2.9% + $0.50 | ~87% | | Poshmark | 20% flat | 80% | | FB Marketplace | 0% (local) / 5% (shipped) | 95-100% | | Depop | 10% + payment fees | ~87% |

Always calculate your net profit: Net Profit = Sale Price - Platform Fees - Shipping Cost - Item Cost - Supplies

Use our free [Platform Comparison Calculator](/tools/platform-comparison-calculator) to find the best platform for each item.

When to Hold vs. Sell Fast

Hold for higher prices when: - Item is rare or hard to find - Seasonal peak is approaching - Market prices are trending up - You have storage space and low carrying costs - Item appreciates over time (collectibles)

Sell fast when: - Item is common and easily replaced - Market is saturated with similar listings - Seasonal window is closing - You need capital for better inventory - Item depreciates (electronics, fashion trends)

The 80/20 Rule: 80% of your profit often comes from 20% of your items. Identify your winners and source more of those.

Key Takeaways

  • Always research sold prices, not listed prices, before pricing
  • Use the 3x minimum rule to ensure profitability
  • Factor in all costs: platform fees, shipping, supplies, and time
  • Price strategically based on item rarity and market conditions
  • Know when to hold for profit vs. sell fast to free up capital

Ready to Start Finding Deals?

DealFlipAI automatically scans Facebook Marketplace to find underpriced items. Let AI do the searching while you focus on flipping.

Try DealFlipAI Free