How To Overcome High Selling Fees

The answer to this really depends on the product you are selling, and you need to take all the selling factors into consideration before making a decision. Obviously it would be ideal if you could cover all your costs within the selling price of your product, but if you’re selling eBooks for a cent or two each you’re obviously not going to be able to do that.

But the only investment into that eBook will be the amount of time it takes you to write it. There are no physical costs involved – you don’t need to buy it in multiples and you don’t need to stock it. It’s safely stored on your computer and you can send out as many copies as you like without it costing you anything.

A tangible product will have a unit price, but it may be sold at a slightly higher price than the eBook. You will also need to figure postage and packaging costs into the picture, although postage is usually paid for by the customer - unless you decide to offer free postage of course. Overall you could find the loss taken on each product will turn out to be the same, even though one has a higher price than the other.

We’ve talked about looking at these low priced eBay sales as a form of advertising; you’re not going on eBay to make money, you’re offering several products that are extremely low in price in order to attract the attention of the niche customers you’re after. It’s those valuable follow up sales and sign ups to the newsletter you send out informing people of your latest (and higher priced) products that is the ultimate goal to aim for.

What you are essentially doing is offering loss leaders as bait to attract new customers. Loss leaders are a form of promotion in which you’ll take a hit on that first sale in order to obtain bigger and more profitable sales later on. In short, it’s a trade off – lose some money now to earn more in the future.

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