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Loss Leaders For Increased Ebay Traffic & Extra Sales

Updated on October 29, 2011

Why Loss Leaders Are So Good For You Business

As mentioned in another Hub of mine, Listing large quantities of inexpensive items that you can afford to list for a penny, will not only increase your traffic but will also increase your exposure due to the higher amount of listings you'll have. I gave an example that if you was selling in the music market you could put packs of 10 guitar plectrums and start them at a penny. Buy the plectrums in bulk and you could then dramatically increase your amount of listings for very little cost.

The Next step in this penny auction technique is using a loss leader. A loss leader is an item you do not intend make a profit from its sole purpose it attract people in and in huge droves. When I really took my eBaying really seriously I looked at the big cats to see what they were doing ( not what they were selling ) to see if I could use some of their techniques. I didn't just look at eBay either. I looked at supermarkets. These places have marketing down to tee they have studied it in fine fine detail. Can you use some of their techniques? Of course you can! You just have to,like anything you learn, take it on board and adapt it to your needs.

Supermarkets Use Loss Leaders to pull the buying public in and It works, especially if you have another half a million other products they can buy whilst they're in there that have a nice mark up on. In fact a loss leader doesn't really make a loss because it could be the reason someone goes and spends £20 - £30 they never intended to spend in the first place. Its the other marketing strategies the supermarkets employ that have to do their job to make people spend more money. 3 for 2 anyone? Buy 1 get 1 free? These Make money as you more than likely never intended to buy them. I'll go into Supermarket tactics and strategies in another hub to help you avoid overspending when shopping

Right so how do you use a loss leaders on eBay?

Now a loss leader on your eBay listings will be something you might only do once a week if you can afford to do more then obviously do so. Now theres no point just buying something from a normal retail outlet and then slapping it on eBay you'll probably lose too much on the item. What you need to do is next time your doing your regular shopping and just look out for heavily reduced items, something that has a high normal selling price. The shop your buying it from might even be using it at a loss leader! Try and find something in your field too, if your into fishing go to your fishing shops and see if they have any bargains or if you sell in music go to your local music shops. Now my top tip for you is to use something that will sell on eBay for £20+ mark, remember your starting this listing at 1p, if you know its most definately worth a minimum of £20+ how many bids do you think its going to need to get to £20? quite a few right? Thiswill also attract alot of watchers, these people may look at your listing 3 or 4 times maybe more. The more watchers you have the better chance you'll have of a bidding war and even making a profit on the item. Many people use this technique incorrectly and list items that only are worth £5 and below may be because they feel they dont want to lose money but if you take into consideration creating a penny auction listing with an item thats worth £20 or more is going to attract alot of attention and will have a knock on effect in your other sales.

The sole purpose for this item is to attract alot of views to the listing, to get the people in to your ebay. You need to make a decent description for this but don't focus your attention on making this sell for loads you need to use your description space to ask your viewers to view your other items, the items that you make a good profit from and that people can buy straight away. So if you've listed an item thats in keeping with what you normally sell the chances are they going to forget about what they were origianlly looking for and start browsing through your shop.

Try and keep the item your buying new,free from defects and keep the tags on the item. Remove the sticky for what you paid for it though. If it has its RRP price printed on the tag thats fine. Just mention its RRP in the listing.

Remember this is a loss leader your not interested in whether it makes a profit or a loss you want the hungry buying public in YOUR shop.

I have an item that is RRP £50 that I can buy for £8 In a clearance shop. This attracts massive amounts of traffic.

Think about this technique, learn form it, adapt it to your needs and you will as a result make more sales if used correctly. It works in any type of sales.

This is just one method to increase your eBay sales visit to find out more of these tips and tricks to make more sales. You'll also see how you can make money on eBay too. You'll wish you had seen this sooner.


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    • JP993 profile imageAUTHOR


      9 years ago from England

      Loss leaders do work. You're only thinking about the ebay sales. When you sell your inexpensive ebay sale, you can then send them along with the item that you've sold a discount card for when they shop on your website, or just send them a leaflet promoting whats on your website. Chances are they'll take a look especially if they're getting a discount. You can put a time limit on the discount code but also say that anyone can use your code thus attracting more customers to your website.

      you shouldnt be focusing on a ebay shops feedback many people dont leave it. You're thinking of loss leaders in the wrong way too, if all you sell is gloves then using the same item as a loss leader is only going to focus your customers on to the bargain. Your loss leader needs to be in the same genre of what your expensive items fit in to.

      So lets say you sell digital cameras, you could use disposable cameras as your loss leaders as you'll be attracting targeted customers that will be inticed to check out your more expensive more desireble digital cameras. Think about what is in keeping and cheap enough as a loss leader that will fit right in with what you already sell.

      its easy.

    • profile image


      9 years ago

      Ebay is a lot different to Tescos. I have looked at competitors who use loss leaders and can't see that they are selling any more than me except for the loss leader itself. When I look through their feedback, a large proportion of their feedback is the loss leader.

      Say somebody is selling gloves of all different colours on ebay and selling black gloves as a loss leader. Most of their feedback would be filled up with the black gloves with one pair of each other colour sold for every 10 pairs of black gloves. Seems crazy to me.


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