eBay is chock-full of products that people are looking for. The problem is that eBay is also chock-full of people selling these sought after products. How do you create a business that is profitable? What kind of products do you sell to set yourself apart from the competition?
Once upon a time, you could sell just about any commodity on eBay and you would actually be able to make a good profit doing so. Of course, this was before the onslaught of competition that is now running rampant on eBay with most commodities. For example, there probably is very little chance of success if you wanted to sell DVDs or electronic items, as the competition is extremely fierce for these items.
Unless you can get a ready and consistent supply of commodities at a price that is lower than what your competition can get it for, then you need to be looking elsewhere to find other product(s) to sell. If you are lucky enough to have an Uncle Bob that manufactures what you are looking for then you are probably set. Otherwise, set your sights elsewhere.
Of course, trying to find a unique niche product to sell on eBay is incredibly difficult. If it were that easy, all eBay sellers would be millionaires, each with their own kingdom of products they reigned over.
We don’t have the answers to the questions of what you should be selling. We can only offer you advice on what not to sell. We don’t recommend throwing your hat into a ring that is saturated with a bunch of sellers that are already selling any particular product, e.g. iPods. If you searched for iPods on eBay, you would find a ton of sellers selling iPods, or anything relating to iPods. It is best to find your own niche and go after it. Then cross your fingers and hope nobody else discovers what you have found. Once a seller sees how successful your product is selling, the chances are pretty good that they will try and sell the same product. And who can blame them?
We used to sell a very profitable item for $179.99, which we purchased direct from the manufacturer for $120.00. That is a $60.00 gross profit on each one that we sold. We would sell 3-5 on any given day, easily. With over 400 sold in less than 8 months, we sold tens of thousands of dollars worth of this item.
Of course, the only reason we were able to do so well selling this item was because, when we first started selling it, we only had one real competitor with a second one who would occasionally come out to play. We no longer sell this particular item because there are now roughly 8 major players (if not more) and a whole bunch of smaller sellers going after the exact same customers. Due to the increased competition, it is no longer profitable to sell this item.
Because of this, we had to start from scratch and find another underserved niche since that one quickly became unprofitable. The real problem with selling that item was it became very easy for our competitor’s to get, thus the increased competition.
It’s always a good idea to think outside of the box (as well as inside) when it comes to product sourcing. You will also find that you will be product sourcing 24/7 and, if you aren’t, then you should be.
You will find that the key to selling on eBay is to find something that there is a reasonable demand for, yet is extremely difficult to find a source for, in other words, a niche product. Again, we have no idea what this might be for you. We just want you to consider having this mindset when it comes to sourcing your products.
In case we haven’t made it clear, it is incredibly difficult to find a niche product. In fact, it will most likely be the hardest part of running your business. However, once you do find that niche product, it can be a gold mine for you. Find several niche products and you will really be onto something.
The bottom line: A large part of your time will (and should) be spent searching for products to sell on eBay and the goal is to find products that will sell well for you.
With that said, we say “Welcome to the competitive world of eBay and online selling!”