How to find an eBay`s niche
A lot of Sellers start selling on eBay with those things that they have and do not need. And it is a quite reasonable solution. Firstly, it will bring much more revenue than the so-called “Garage” sale, especially that such events are more characteristic to the Western countries. Well, and secondly the gain of initial experience in sales without investing money into a commodity is more than profitable. You only need to look around and you will surely see a lot of things that you will never use again and most likely to throw out. Trial sales of such items on eBay, according to many experts in online business, are the perfect start.
If you do not have anything to part with, start with the products, you understand the specifics of which, and you think will be in demand in the market. Thus, the ones that you think will be sure to be bought. Do not make the typical mistake and don`t be too self-confident – do not expose on sales things you like or the ones that are most trendy. If your main purpose is making a profit, then do not forget about it, and put up for sale products that are in demand.
If you are choosing a product that you want to put up for auction – try to make a list of the most suitable goods in your opinion, and then search for similar products by use of the eBay search. If you find a large number of products similar to yours, then try to determine whether the demand for this product is high, the average closing price of trading, as well as what percent of the exhibited goods that is not sold. Perform a search for current lots, and the lots, bids on which have already been completed. If the search does not return any results, try to determine the cause of it: either your product is unique and no one has it, or demand is practically absent.
Depending on the category, a great abundance of searching results of products similar to yours can speak in your favor or against it. Either the demand for these products is very high and creates offer, or the market is “flooded” and oversaturated. Then you should not just count the number of products similar to yours that was put up for auction, but look through the specific items, to explore the activity of buyers, pricing, etc. Use the Advanced Search and the option “Search for the lots, bids for which have already been completed”. Then put any product for sale, according to the taken results.
Things to think over
If you have already decided on a product to sell, or if you are deciding on it – think over the answers on the following questions:
Cost. How much will this item cost you? Will there be any additional costs such as: delivery of goods to your place, fixing it, etc. Do you need to have cash now to buy this product? Remember that Customers on eBay is much more likely to buy products with lower prices and better (and easier) sold ten units that cost $ 5 than one unit for $ 50.
Storage. Will you have any problem with product`s storage? If so – consider, where products can be kept before their delivery to the Customer. Place has to fit certain criteria: to be dry, clean, warm, safe and easily accessible.
Delivery. What will the cost of delivery be for the Customer? To discover that you should visit nearest post office. Also do not forget the delivery to be more expensive if the product is fragile, too heavy, oversized or has a form that will require special packaging.
Product`s “life cycle”. Some products have stable demand on eBay for a long time already, regardless to the season, fashion etc. But there are items that could be profitable, when they are sold in particular time interval, then the prices for these items decreases almost to the zero point, and after that to sell these products becomes problematic. It is items like fashion accessories, clothing, and some exclusive products, electronic. Time period, during which the product will bring you maximal profit, is named “product`s life cycle”. If you want to increase profits you have to pay considerable attention to this.
Seasonality. Some products have a strongly pronounced seasonality. For example, sale of the summer clothes, accessorize for the garden, sunglasses etc., can be problematic. It`s not always mean, that you won`t sell it, but be sure profit will be than in the particular season. If there is no problem with storage, it is wiser to keep products.
Where can you take products for sale
Home. Usually, you can find a lot of items at home that you do not need, and the sale of which can make a profit. Think about it: in your apartment, house, garage, attic, car has to be something like that.
Flea Market. On the so-called “Flea markets” that sells a range of goods, which are peculiar only to your region. Such products tend to have a demand.
Garage sale. Although this events are not as popular in Ukraine or Russia as in the West, and many people simply bring these products to the flea market – don`t skip the “garage sale”. Most interesting items can be found in old houses destined for demolition, the old garages and attics.
Antique and second-hand bookshops. You can find a lot of things that are suitable for sale inside these shops. Although you will need some knowledge and experience, because it is almost impossible to sell this type of merchandise and not understand it.
Friends and family. Your friends and family members certainly have things you need. Try to ask them.
Purchases from wholesalers
When your business on eBay starts to progress, you can choose the wholesalers as a source of product purchases. It can bring a considerable profit if approach to the selection of the supplier is proper.
Certainly, like all Sellers on eBay, you will not sell products of several directions. When you define with products for sell, practice on setting up sales and feel that you have found your niche, you can establish contacts with wholesalers. It is both simple and difficult at the same time to find them. Firstly you need to put a commodity`s price significantly different from retail, and secondly good if the Seller has legal status and is able to provide you with all the necessary documents including invoices, etc.
However, you must at first make sure that you do not have to deal with an intermediary and the product is obtained directly from the manufacturer. And do not forget: in order to get a good price and ask the Seller for an extra bonus, you need legal implementation of your business.