To price items correctly on eBay, sellers must avoid pricing too high to result in no sales or too low to make a profit. When setting prices, sellers should establish a starting bid price below $50 to attract bidders, and they can set an optional reserve price to avoid selling below their profit margin. For shipping costs, sellers should not overcharge buyers and should only charge handling fees for large or heavy items to avoid disputes. Proper research of similar sold items helps sellers determine average prices and price their items accordingly.