Selling goods on websites like Etsy, Depop, eBay, Poshmark, and Depop can be a lucrative side gig leading to a small business. However, one of the challenges sellers often face is dealing with lowball offers—those unreasonably low offers that can feel frustrating or even insulting. Understanding how to handle these offers professionally can distinguish between a missed sale and a successful negotiation. This piece will examine practical methods for handling lowball offers on these well-known platforms.

Understanding Lowball Offers: What They Are and Why They Happen

Lowball offers are bids from potential buyers that fall significantly below the seller’s asking price. They are especially common on platforms like Poshmark, eBay, Depop, and Etsy, where negotiation is part of the buying process. But why do buyers make such offers?

1. Seeking a Bargain: Many buyers are motivated to get a good deal. They may intentionally offer a lower price in hopes of scoring a bargain or testing the seller’s willingness to negotiate.
2. Lack of Understanding: Sometimes, buyers need help understanding the item’s value. They may need to be more familiar with market prices or the item’s condition, leading them to make offers that seem low from their perspective.
3. Testing the Waters: Buyers often make low offers as a negotiation tactic. By starting with a low bid, they aim to gauge how flexible the seller is on price and potentially secure a better deal.
4. Economic Factors: In times of economic uncertainty or when buyers are on a tight budget, they may make lower offers to stretch their dollars further.
5. Market Trends: Market trends or seasonal factors occasionally influence lowball offers. For example, during a slow period or off-season, buyers might make lower offers due to decreased demand.

Understanding these reasons can help sellers approach lowball offers more informally. While lowball offers can be frustrating, they are often a part of the negotiation process in online selling.

Strategies to Handle Lowball Offers Professionally

Dealing with lowball offers can be challenging, but responding professionally and strategically can improve these situations. Here’s how you can handle lowball offers with grace and effectiveness:

1. Acknowledge the Offer Respectfully
   • Begin by acknowledging the buyer’s interest. A simple “Thank you for your offer” shows you appreciate their engagement without immediately committing to their price. This approach maintains a positive tone and keeps the lines of communication open.
2. Maintain Professionalism
   • Regardless of the low offer, keep your response professional and courteous. Avoid expressing frustration or disappointment, as this can damage your reputation and turn potential buyers away. A professional demeanor helps maintain your credibility as a seller.
3. Provide a Counteroffer
   • If you’re open to negotiation, respond with a counteroffer that better reflects the value of your item. This can be slightly lower than your original asking price but closer to your target price. A counteroffer demonstrates flexibility while still aiming to achieve a fair price.
4. Explain the Value
   • Sometimes, buyers make low offers due to a need to understand the item’s value. Use this opportunity to provide additional information about the item’s features, condition, or any unique aspects that justify the price. Educating buyers can help them see the item’s worth and potentially lead to a more reasonable offer.
5. Set Boundaries
   • communicate your minimum acceptable price if necessary. This helps set clear expectations and prevents future lowball offers. If a buyer’s offer is significantly below this threshold, declining politely and moving on is okay.
6. Be Prepared to Walk Away
   • Not all lowball offers will lead to a successful negotiation. Sometimes, the best action is gently declining an offer and looking for alternative purchasers prepared to pay a fair price if the buyer cannot bargain in good faith or reach your minimum price.
7. Use Automated Responses (If Applicable)
   • Some platforms allow sellers to set automated responses for lowball offers. If you frequently receive offers that don’t meet your expectations, consider using these tools to streamline your responses and consistently handle such situations.
8. Keep Communication Open
   • Encourage open communication by asking the buyer if they are willing to negotiate further. Sometimes, buyers may be open to adjusting their offer if they feel the negotiation is productive and respectful.
9. Leverage Platform Tools
   • Utilize tools or features the selling platform provides, such as the “Make Offer” button on eBay or similar features on other platforms, to streamline negotiations and manage offers efficiently.

Setting Your Pricing Strategy to Minimize Lowball Offers

Establishing a solid pricing strategy can significantly reduce the frequency of lowball offers and ensure you get fair value for your items. Here are some effective strategies to consider:

1. Research Market Prices
   • Before setting your price, research similar items on the platform to understand the going rate. This can help you price your items competitively while avoiding undervaluation. Knowing the market helps set a realistic and attractive price for buyers.
2. Price Slightly Higher for Negotiation Room
   • Set your initial price slightly higher than your minimum acceptable price. This creates room for negotiation and allows buyers to feel like they are getting a deal when they make an offer. It also helps protect your profit margin if you need to make concessions.
3. Consider the Platform’s Fee Structure
   • The charge structures of various platforms can affect your pricing plan. For example, Poshmark levies a flat fee for transactions under $15 and a 20% cost for transactions above that sum. By accounting for these expenses in your pricing, you can ensure that lowball offers are not protected from their margins.
4. Make Use of Psychological Pricing Strategies
   • Use psychological pricing techniques, such as setting an item’s price of $19.99 rather than $20.00. Such pricing can make items appear more attractive to buyers and reduce the likelihood of lowball offers.
5. Monitor and Adjust Pricing Regularly
   • Review and adjust your pricing regularly based on market trends, item performance, and buyer feedback. If an item is not selling as expected, consider adjusting the price to attract serious buyers without necessarily resorting to lowball offers.
6. Bundle Items for Better Value
   • Offering item bundles or discounts for purchasing multiple items can attract buyers looking for value. Bundling can reduce the number of lowball offers by providing buyers with a perceived better deal.
7. Highlight Item Value and Unique Features
   • communicate the value of your items and the unique features in your listings. Well-described items with detailed information and high-quality photos can justify higher prices and reduce the likelihood of lowball offers.
8. Set a Firm Price for High-Demand Items
   • For items in high demand or with a strong resale value, set a firm price close to the market value. High-demand items are less likely to attract lowball offers if the price reflects their true worth.

Here’s a table summarizing these strategies:

Negotiation Tactics to Counter Lowball Offers

Effective negotiation is key to turning a lowball offer into a successful sale. Here are some tactics to handle lowball offers and negotiate effectively:

1. Respond Promptly and Politely
   • When a lowball offer comes in, respond quickly to show that you are engaged and willing to negotiate. A prompt and polite response sets a positive tone for the negotiation and demonstrates professionalism.
2. Express Appreciation
   • Start your response by thanking the buyer for their offer. For example, “Thank you for your interest in this item. I appreciate your offer.” This approach respects the buyer’s proposal while keeping the conversation friendly.
3. Provide a Counteroffer
   • Make a counteroffer that reflects the item’s true value. For instance, if your item is listed at $100 and the buyer offers $50, you might counter with $90. This demonstrates flexibility and keeps the negotiation within a reasonable range.
4. Justify Your Price
   • Highlight the item’s value, condition, and unique features to explain why your price is fair. A brief explanation helps buyers understand the worth of your item and justifies the price you’re asking. For example, “This vintage jacket is in excellent condition and professionally cleaned. Similar items are listed for over $100.”
5. Be Firm but Flexible
   • While it’s important to stand your ground, show some flexibility. If the buyer’s offer is far below your acceptable range, you can offer to meet halfway. For instance, if a buyer offers $70 and you’re firm at $90, you might counter with $80 to find a middle ground.
6. Set a Final Price
   • If negotiations are dragging on or you receive multiple lowball offers, consider setting a final price you will accept. Communicate this price to the buyer. For example, “My final price for this item is $85. If you’re interested, please let me know.”
7. Use a Limited-Time Offer
   • Offer a limited-time discount or promotion to create a sense of urgency. For example, “I can offer you this item for $80 if you decide by the end of the day.” This tactic can prompt buyers to act quickly and close the deal.
8. Leverage Comparisons
   • Point out how your item compares favorably to similar items on the platform. Use this information to justify your price and reinforce that it’s reasonable. For example, “Similar items are priced between $85 and $120. I’m offering this one at a competitive price of $90.”
9. Avoid Emotional Responses
   • Keep emotions out of the negotiation process. Avoid showing frustration or annoyance, as this can negatively impact the buyer’s perception. Stay calm and focused on achieving a fair deal.
10. Know When to Walk Away
    • If negotiations are not progressing and the buyer remains unreasonably firm, be prepared to walk away. Politely decline the offer and move on to other potential buyers. Sometimes, ending a negotiation gracefully can lead to new opportunities.

When to Accept, Decline, or Counter Lowball Offers

Deciding whether to accept, decline, or counter a lowball offer requires careful consideration of various factors. Each situation is unique, and your decision should be based on your pricing strategy, market conditions, and the offer’s specifics. Here’s a guide to help you make informed decisions:

Accepting a Lowball Offer

When to Accept:

1. Item Has Been Listed for a Long Time: If your item has been on the market for an extended period and you’re eager to sell, accepting a lower offer might be a practical choice to move inventory.
2. High-Volume Seller: If you’re a high-volume seller looking to clear out stock quickly, accepting a lower offer can help you achieve faster turnover.
3. Unique Circumstances: Special situations, such as urgent financial needs or a specific buyer particularly interested in the item, may warrant accepting a lower price.
4. Minimal Margin: If the difference between your asking price and the lowball offer is small and still allows for a reasonable profit, accepting the offer might be worth it.

Declining a Lowball Offer

When to Decline:

1. Offer is Far Below Minimum Acceptable Price: If the offer is significantly lower than your minimum acceptable price and does not align with market value, it’s appropriate to decline.
2. High-Demand Item: A better offer is often the best approach for items in high demand or with strong resale value. Declining lowball offers helps maintain the item’s perceived value.
3. Strategic Pricing: If the lowball offer undermines your pricing strategy or market positioning, it’s better to decline and stick to your original price.
4. Repeated Low Offers: If you consistently receive lowball offers from the same or similar buyers, declining and moving on may be more effective.

Countering a Lowball Offer

When to Counter:

1. Negotiation Flexibility: If the buyer’s offer is lower but you’re open to negotiation, countering can lead to a mutually agreeable price. This shows that you’re willing to work with them while aiming to achieve a fair deal.
2. Small Offer Difference: When the difference between your asking price and the offer is small, countering with a price closer to your original listing can be a good strategy.
3. Potential for Compromise: If you sense that the buyer is genuinely interested but has budget constraints, countering with a price slightly lower than your asking price might close the deal.
4. Market Research Shows Competitive Pricing: If your research indicates that your pricing is competitive, countering can help validate your price and potentially lead to a sale.

Here’s a table summarizing when to accept, decline, or counter lowball offers:

Conclusion

Dealing with lowball offers is a common part of selling on platforms like Poshmark, eBay, Depop, and Etsy. Understanding why these offers happen and developing strategies to manage them can turn potentially frustrating situations into successful sales. Remember, staying professional and flexible in your negotiations can help you maintain a positive selling experience and build a reputation as a fair and responsive seller.

FAQs

What is a lowball offer?

A lowball offer is a bid made by a buyer significantly lower than the seller’s asking price.

How should I respond to a lowball offer?

Respond politely, acknowledge the offer, and consider countering with a price that better reflects the item’s value.

Should I always decline lowball offers?

Not necessarily. Sometimes, accepting a lower offer can be strategic, especially if the item has been on the market for a while.

Can pricing strategies help reduce lowball offers?

Setting a competitive and slightly higher price can leave room for negotiation while deterring extremely low offers.

What if a buyer refuses to negotiate?

If a buyer is unwilling to negotiate, it’s okay to politely decline their offer and wait for another buyer who values the item more appropriately.

Additional Resources

• Poshmark Selling Guide
• eBay Seller Center
• Depop Seller Tips
• Etsy Seller Handbook