Scratching your way out of the price battle; how to sell commodities online at a decent profit

Selling online is tough stuff--don't let anyone pretend it isn't. Selling commodities, or anything that is plentiful and sold by a lot of people, is especially tough. The price wars can be vicious with sellers undercutting each other until the only winners are the customers.

I have been selling a lot of a particular product during the last few weeks at a fair profit. I found the product quite easily (at my local box store) and was surprised when I listed it that no one else was selling it. My assistant was ecstatic, we were selling several a day. I knew it wouldn't last long; it was only a matter of time until my competition caught on and listed it too. It happened a couple of days ago--I knew we had been "found out" before even doing the research because sales came to a screeching halt. I found him (or her) rather quickly, they had under priced me by one penny!

Now, no one accuses ebay shoppers of being loyal. They are usually on ebay for a bargain and the lowest priced product usually wins. I get that. But it is still frustrating.

What are the options when this pricing war starts? How can you stand out from your competition without slicing your margins?

1.) Stand out from your customers with great photos. If everyone is using the same stock photo, do something different to yours to make it a little different. Add text advertising your money back guarantee or add a border or use a different picture. Buyers are more likely to click on a listing that appears unique.

2.) Bundle your product in a different way. Sell two instead of one or include an accessory or two. Add value to YOUR listing.

3.) Give away free information relating to your product. Even if the information is easy to find, your taking the time to print it off and include it can add value and make your product worth more.

4.) Provide excellent customer service. Make your listing crystal clear and answer all questions right away. Brag about your customer service in your listing. Maintain the best feedback you can.

5.) Stay a step ahead of your competition by staying on top of the product lines. Introduce new items and get some sales in before you have a lot of competition. Offer the accessories and add-ons that other sellers don't carry. Be creative with your product mix.

Above all, DON"T GET DISCOURAGED! Ebay is a dynamic, fluid marketplace and creative and persistent sellers will always find a way to persevere.