The Fundamental Pricing Question
Every item from your pallet has a “right” price — the price at which it sells within your target timeframe, after platform fees, leaving you with the profit you need to make the business work. The right price is rarely the highest price you could possibly get, and rarely the lowest price that would sell instantly. It’s somewhere in between.
Most beginners default to one of two failure modes: priced too high (item sits forever, you take a relisting loss) or priced too low (item sells fast but you leave 30–50% of potential profit on the table). The middle path requires data.
Step 1: Research Sold Comparables
Never price based on what other sellers are asking. Price based on what items have actually sold for. The two numbers can be 30–50% apart.
On eBay
Search for your item. In the filters on the left, scroll to “Sold items” and check it. You now see only completed sales, not active listings. Look at the last 30 days of sold items and note the range.
On Mercari
Mercari has a “Sold” filter in search. Same principle as eBay.
On Poshmark
Poshmark hides sold prices unless you have an account. Use third-party tools like PoshTrace or Closet Tools to see sold comps.
On Facebook Marketplace
FB doesn’t show sold prices. You’ll have to estimate from active listings and your own selling history.
Step 2: Calculate Your Net Floor Price
Before pricing, figure out the minimum sale price that still gives you target profit. Formula:
Floor price = (cost basis + shipping cost) ÷ (1 – platform fee rate – target margin)
Example: An item with $12 cost basis (your share of the pallet cost), $8 outbound shipping, 13% eBay fees, and 20% target margin:
Floor = (12 + 8) ÷ (1 – 0.13 – 0.20) = 20 ÷ 0.67 = $29.85
If sold comps for the item run $35–$45, you have room. List at $42 with negotiation flexibility down to $35. If sold comps run $25, this item isn’t worth listing — donate or scrap it.
Step 3: Decide Fast Turn or Max Profit
Fast turn
Price at the 25th percentile of sold comps. Sells in days to a week. Lower margin per unit, higher cash flow, faster cycle through inventory.
Max profit
Price at the 75th percentile of sold comps. Sells in weeks to months. Higher margin per unit, slower cash flow, ties up working capital.
Use fast turn for: seasonal items late in their season, items with declining market trends, when you need cash flow. Use max profit for: items with stable demand, when storage isn’t tight, items in your specialty.
Step 4: Build in Negotiation Margin
On platforms with negotiation (eBay, Facebook Marketplace, Mercari with “Make Offer”), list 10–15% above your target sale price. This lets buyers feel like they got a deal while you net your target.
Don’t accept the first offer unless it’s already above your target. Counter at your list price minus 5%. Many buyers will meet you halfway, which lands you at your target with the buyer feeling like they won.
Bundle Strategies
Bundling slow-moving items with fast-movers improves overall sell-through and average sale price. Three common bundle approaches:
Theme bundles
Group complementary items: a coffee maker + 3 mugs + ground coffee package. Sells better than individual pieces.
Tier bundles
Group items at three price points: “Buy 1 / Buy 2 (10% off) / Buy 3 (20% off).” Encourages multi-item purchases.
Pair the slow with the fast
List a slow-moving item as a bonus when buying a fast-moving item. Clears the slow inventory at the cost of slight margin compression.
Bundles work best on platforms with native multi-item support: eBay, Mercari. On Facebook Marketplace, bundling is more manual.
Dynamic Repricing
Items that don’t sell at your initial price need a repricing strategy:
- Week 1–2 at initial price: gives the item time to be seen
- Week 3: drop 10%
- Week 5: drop another 10%
- Week 7: drop another 15%
- Week 10: list at 50% of original or move to bundle inventory
- Week 12: donate or scrap
Auto-repricing tools (eBay’s “Auto-decline below X / accept above Y,” Mercari’s price-drop notifications) automate this. Set them up once and let the system do the work.
Pricing for Specific Categories
Electronics
Price by model number search. New-in-box: 75–85% of new retail. Open box working: 55–70%. Used working: 40–55%. For parts: 10–20%.
Apparel
Price by brand tier. Premium brands (Lululemon, Patagonia, Nike): 40–60% of retail. Mid-tier (Levi’s, Old Navy, Gap): 25–40%. House brands: 15–25%.
Toys
New-in-box: 60–80% of retail. Open box complete: 35–50%. Missing pieces or damaged box: 15–25%.
Tools
Working with all accessories: 50–70% of retail. Working without accessories: 35–50%. For parts: 10–20%.
Frequently Asked Questions
Should I list at full retail to anchor?
No — buyers know retail pricing. Inflated prices get skipped over.
What about “Best Offer” listings?
Great for items where sold comps vary widely. Set your floor to auto-decline below, accept above target.
Can I match prices to my competitors’ active listings?
Match sold prices, not active asking prices. Active listings often haven’t sold for a reason.
Further Reading
- Better Business Bureau — verify any liquidation supplier before sending payment
- US Small Business Administration: Launch Your Business — official guide on registering a US reseller business
- IRS: Business Structures — tax classification options for a new reseller LLC or sole proprietorship
Ready to put this into action?
Browse our current pallet inventory or talk to our team about your first order.