Showing posts with label niche market. Show all posts
Showing posts with label niche market. Show all posts

Thursday, January 08, 2009

Find Your Niche Market on Ebay

Many of us dream of working from home by selling products on Ebay. But what would we sell? And how would we know if a market exists for the items we have? To avoid listing items that nobody wants, or items within an already flooded market, some research is in order. The goal of this research is to find your niche on Ebay.

Many Ebay sellers provide their goods within one niche. Others have a handful of niches that they specialize in. The key is to find a group of products that you're already familiar with. Perhaps you've been a collector of antiques for many years. If so, you probably know when you come across an item that could potentially sell for a good amount of cash. Likewise, you have a good idea of which items are likely to collect dust on your shelves. You can put this knowledge to work for you on Ebay. Your expertise with antiques gives you an edge over many competitors.

Once you have a good idea of the niche you wish to fill, it's time for the second half of your preliminary work. Start a spreadsheet that lists the different types of items you would like to sell. Then add a monetary value to each entry. This reflects how much you can expect to purchase the item for. Be realistic; you want to lay out an accurate portrait of how much money you will be spending to build up your inventory. Optimism won't help in this circumstance.

Expand your spreadsheet to include other niche markets, just in case. These can be items you enjoy working with, have expert knowledge of, or something you've always had an affinity for and think you could be successful with. Remember: no matter what your niche is, someone will buy from it as long as you list quality items at reasonable prices. Estimate the initial cost of each item, including shipping and sales tax. Then prepare to immerse yourself in Ebay as your research begins in earnest.

Go to Ebay and search through the completed auctions. This allows you to see the actual price that items similar to yours have sold for. Is the average price something you could live with? Remember to factor in shipping costs. Also, pay attention to the quality of the sold items when deciding whether this niche is something you wish to pursue. Items in “mint” or “like new” condition will bring considerably higher prices on Ebay than worn, scuffed items.

Now reflect on your findings. Did the completed Ebay auctions fetch your target price, or were the closing bids uniformly low? Did any of the items fetch a surprisingly high amount? If you were unimpressed by your findings, go back and consult your spreadsheet; it’s time to start researching another niche.

If your observations were mostly positive, you may have found your Ebay niche already. In that case, go out and start building up your supply. Don’t go overboard; you’re still in the testing phase. Purchase a dozen or so items at fair prices. Then list them on Ebay.


For many sellers, waiting is the hard part. But you’ll need patience for this phase of your niche-finding project. Monitor your listings and see how they perform. If they do well, you can build up your stock even more and increase your listings. If they don’t quite live up to your expectations, you can go back to square one. Pick another niche from your spreadsheet and start researching it.

The key to finding your niche on Ebay, as with many challenges in life, is simply to never quit. If you have a wide variety of interests, you’re more likely to find a profitable niche that you will enjoy filling. Think of all the things you enjoy doing, making, or collecting. Then come up with a list of ten items related to each. This sort of brainstorming is a sure-fire remedy for pushing past your seller’s block. Let your imagination roam, and you’ll carve out your Ebay niche in no time.

Friday, December 12, 2008

What You Should Know BEFORE You Sell on eBay


There's no doubt about it: eBay is a popular way to make money from home. eBay sellers rave about the online auction's ease of use and the large pool of potential buyers. Millions of sellers report eBay as their sole source of income. If they can work from home with eBay, why can't you?

You can. But if you want to make money on eBay, you need to ask yourself some questions.

What do you want to sell on eBay? Some people make a fine income reselling items they found at yard or estate sales. Other eBay sellers list their items again and again because they just don't seem to be in demand.

Why the discrepancy?

Successful eBay resellers are very familiar with their items. They know how much each item is worth, and they know how much competition they can expect from other sellers listing similar items. They also know whether or not there is a market for a given item, and they pass up items that might prove difficult to sell.

One top eBay seller follows a simply rule of thumb: she never pays more than $5 for an item when she's not sure what it's worth. This has brought her great success while minimizing her losses. If a $5 item turns out to be a hot seller, she gladly pockets the extra money. If the item bombs instead, she hasn't lost much of her initial investment. Like other eBay power sellers, she also knows that the really big sales come sporadically. They should be enjoyed, but never counted on.

How do you assess the competition for a given item? Do an eBay search for similar items and see what comes up. If it looks like the market is saturated, find something else to list. You can always list your item later, when competition isn't so stiff. Doing an eBay search is a great idea because it also lets you see how much others are charging for items like yours. If you can undercut the competition without going broke, do it. If not, wait.

While vintage furniture and other bulky items often find enthusiastic new homes, you should be familiar with shipping prices and procedures before you list the big stuff. You don't want to spend a hundred dollars shipping an item that just sold for $150. Consult your local post office, UPS, and freight carriers to learn vital shipping details.

Finally, ask yourself if you want to sell general merchandise or cater to a niche market. Having a wide selection of diverse items can mean a larger market for your wares. It also means a pretty hefty initial investment of time and money while you build up your stock. If you’re experienced with a certain type of merchandise, like designer clothing or toys, why not specialize in that niche? With the advent of eBay stores, you can create a low-cost, permanent showcase for your items. Niche stores tend to do very well, because customers will visit them when they need a specific type of item. Some specialize in gothic jewelry, while others focus on collectible figurines. I made a boatload of money on eBay in 1999-2000 selling Pokemon merchandise. There is a niche market for just about everything, so choose items that you’re familiar with and display them in your eBay store.

Making money on eBay is easy to do, if you do your homework. Sellers who research their items and their markets beforehand lead the pack in eBay success stories. Take a page out of their book. Before you build your inventory, know what you want to sell, to whom, and for how much. A little research now will save you a lot of unpleasant surprises later.