Since I just posted that I topped $1,000 in personal sales selling on LoobaLee selling gently used and NWT kids clothing, I reflected on why my items are selling well and I am happy about the transactions. When I look at the big picture, I do not feel ripped off or feel I have sold too “low”. Sure, I have the occasional item that I “let go”, but I also have a good balance of sales on items where I make a fair margin. A big lesson learned here, which is true in all marketplaces and in retail, is that you can’t win all the time, but without a balance of wins too, its hard to be motivated to stay in the game.
LoobaLee is not an auction site. On LoobaLee, you are 100% in control of your pricing (and its editable!). Your items are listed for sale at the price you specify. Therefore, it may be tempting for people who have been burned in auctions to slightly overprice their items or their shipping. This has created some old habits that are hard to break. The habit of “covering yourself” just might be pricing you out of the market.
A good way to test market your prices is to play with the LoobaLee Auto-Clearance Feature. After your original 30 day listing period, you can choose to auto-clearance your items, and they will automatically reduce in price over a 3 week period before finally expiring. 15% in week 1, 30% in week 2, and 45% in week 3. If your items only ever sell on Clearance, then you are probably a bit high, or your shipping is overstated.
So, my #1 strategy is Pricing – not just at an item level, but at a total inventory level (just like a retailer would do). I will price some items low, and others fair (win-win for both the Buyer & for me). The low items are likely to attract people to the fair priced items too, and then people are more likely to buy multiple items on the same order (note: My average order is 2.1 items per). And, I never price my items originally to lose money. But, I will price some of them at a very low margin, such that if they went on clearance and were purchased at 30 – 45% off, I might be at risk.
My 7 Secrets to Selling Success
1. Price fairly and appealing to the market Consider all your inventory and be willing to let some items go at a low margin (or even risk a loss on Clearance). This will attract people to your fair-priced items. Fair pricing is a win-win for both You and the Buyer. Put yourself in the Buyer’s shoes — would YOU buy the item at the price you have listed? It can be tricky, because I have also learned that the low price isn’t always the best price. On a couple of occasions, I went UP in price — then my item sold. These were items that I know are in demand, and I think the higher price more accurately reflected the condition, giving the buyer more trust in the sale. It was interesting to see, but warning: going high on everything, will hinder all your sales.
2. Offer Actual Shipping (or go low) Over-priced shipping will kill almost every deal. If you want to sell, DO NOT overstate your shipping. Again, old habits are hard to break. This is not eBay and not an auction site, so games are not going to help you out (unless they are 100% in favor toward the Buyer). It is a good strategy, however, to understate shipping, if your margin can bear it – this will help you sell. Consider both the Item Price and the Shipping together — that is what your potential Buyers are doing.
3. Use Good, but Not Great, Photos It is not necessary to have a professional quality image (in fact it could backfire on you) because it may give the perception your item is priced too high. Good photos, however, are essential and are not difficult to get. It’s also essential that your images are zoom-able. If a Buyer can’t zoom in on the details, they are likely to pass. The best size is 1 MB. If you image is under 500 KB, it won’t zoom. And, over 1 MB and your images will take longer to load. So 1 MB is the sweet spot. (watch soon for my next article on tips for taking good “amateur” images) 
4. Use Multiple Photos 2 – 4 photos is always better than 1. Buyers like to see multiple photos. Even if you have a boring, plain polo shirt, you can always take at least 2 photos. An option is always to zoom in on the tag. If your item has a print or an embellishment, zoom in. My general rule of thumb is at least 2 (but 3 is better) for a single item, and 4 for an outfit.
5. Group Individual Items into Outfits I used to list most of my Gymboree and Gap, for example, as individual items — thinking that people want to make their own outfits. Not true. First and foremost, people want a good deal and their perception is they will pay less for shipping. And, these days, Gymboree and Gap are selling as well as they used to. After I started grouping my items into outfits (same brand, line, and size), I saw more sales. Truth be told on LoobaLee – is that our checkout automatically calculates shipping on multiple items, so that whether the Buyer bought 2 listings individually, or 1 listing of both items — they would have paid approx. the same in shipping. But, it’s all about their perception…
6. Enter a detailed Additional Description This is your space to ‘market’ your item. So, let the buyer know all the details. Describe the color if your image isn’t perfect, describe the items details or quality of construction, provide the measurements, etc. For resale, I always enter the exact measurements of the item. Brands very greatly, and once items are washed there can be even more variance. I also find it effective to tell a short, personal story (really short – 1 sentence), e.g. was this my daughter’s favorite dress? is there something special about the item? when/for what occasion did my child wear the item? etc.
7. Time your listings and pricing with the Market The children’s retail industry spend millions (if not billions) advertising to us each year, so take advantage of the messaging that is already influencing the Buyers. E.g. when do you start to list for the next season? As soon as the retailers start. And, when do you start to clearance or mark down your items? Take a clue from the retailers and follow their lead. Resale lags retail a little bit, for sure, so don’t be afraid you “missed”, there is a little bit more give in resale and overstocks, but not more 6-8 weeks.
For more tips on Selling, check out these recorded Training Session: Selling 101 & Advanced Selling Strategies.
What a great post! I really loved the outfit idea. It’s so simple, yet very few people think about it, including myself. This is true, the majority of buyers don’t have a stylist eye, seeing the potential of an item and how it would work with other pieces they already own. So, this styling solution works both ways. Thank you!