MSRP stands for “manufacturer’s suggested retail price.” The term refers to the recommended price a retailer should sell a product for. MSRP exists to standardize pricing amongst different retail locations, though sellers always have the option to sell below MSRP in the case of sales and promotions. Understanding MSRP is vital to building an eBay business. Online sellers on eBay should consider adopting the Strike-Through Pricing (STP) strategy, where the usual MSRP is crossed out on the listing and replaced with a sale price. STP is only available on fixed-price items and is not valid for auctions. Selling a product below MSRP gives the impression to the customer that they are saving money and it can increase the chances of finalizing a sale. This tactic is also referred to as anchor pricing, where the MSRP is used as a psychological anchor price. However, you should never sell an item at a loss. If you want to be a successful seller on eBay, you’ll need to learn how to do proper product research. Algopix is a reliable eBay product research tool that can help you research profitable products, analyze your competition’s pricing strategies, and calculate relevant expenses for you.
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