You can set both the start price, and a price that you wont accept a bid under. They set the start price at 1 cent to get peoples attention, but set their other price at what they want so they dont lose money.

It is a clever sales tactic. Ebay will, with the click of a mouse, sort auctions from Lowest price to Highest price. If you start at one cent, voila! Your auctions shows up first, which gives it more exposure to shoppers.

&lt;paranoid> I always thought that it was a way for unscrupulous ebay sellers to raise their feedback score. Normally, you have to actually buy real things (i.e., have real transactions for real product) with other ebayers in order for the buyer and seller to give each other good feedback scores. As a buyer, you are taught to only buy from people with high feedback scores. If someone wanted to scam you on ebay, they could buy 1000 or 2000 one cent items, essentially "buying" positive feedback. Then, once the scammer has enough positive feedback, he posts something for sale that is either very expensive, very in-demand, or both. Buyers, seeing a high feedback score, would bid with confidence. The seller would take all the orders, ask for the buyers' money, then disappear. This type of scam requires that the seller have high feedback scores (ever wonder how some sellers get a 99.9 positive feedback across 5000 transaction?). And what better way to get high feedback scores than to buy a ton of one cent items? I've seen sellers offering those free AOL cd's that come in your snailmail for one cent, just for people who want to build their feedback scores. </paranoid>

It is possible to make money selling items on ebay for one cent. A seller may list an item for one cent, and then charge an excessive amount of money for shipping in order to generate the profit. For example: Seller spends $1.00 at the dollar store. Seller sells item on ebay for $.01. Seller charges $5.00 to ship item. Actual shipping cost to seller is $2.00. Seller makes $2.01 in profit (minus ebay fees),

E-bay claims that they may ban sellers for trying to make money from shipping and handling charges. Another reason for starting an auction low is to generate interest. In an auction, the ideal situtation for the seller is to have several potential buyers interested who bid against each other and rapidly drive the price up. A very low starting price is good 'bait' for bargain hunters. Of course, as you mentioned, if the seller doesn't charge extra for shipping and the item sells for 1 cent, the seller doesn't make any money.

Ever wonder what Ebay Fee`s cost the Seller. He are my Fee`s for an auction that sold same item sell price $10.00. On a $10.00 Auction Ebay`s Take is $2.24 Listing Fees Insertion fee: $0.40 Buy It Now Fee: $0.10 Gallery: $0.35 Gift Services: $0.25 Total: $1.10 Final Value Fee $0.45 on $10.00 Paypal Fee`s Plus $1 fee ATM or $2.00 from Bank Teller Total Amount: $14.60 USD $10.00 + $4.60 ship fee Fee Amount: -$0.69 USD Net Amount: $13.91 USD If you have any business Ideas or problems Let me know I`d like to help. No charge ever I do things like this because I think it`s fun. Selling online is the Greatest game you can play. Let me know whats up. Tj freedomsales@fastmail.fm

The charge for the item is in the shipping. Always check the shipping price BEFORE bidding.

I had always put a one cent start price on my selling items because it generated interest, and the price always went up from there or didn't sell. You must put in a starting price when you list an item, and you can make it whatever you want to.

They make their money in shipping. eg I see some things that are cheap and coming from quite close to where I live. I ask them if I can pick up from their address (to save postage), but they refuse, because by charging me $20 for postage, they have made their money.