Welcome to this edition of Adam Ginsberg's "Insiders" Newsletter. Each issue is designed to provide you with insights, tips, secrets and overall strategies on how you can build your online auctions business. I'm sure you love this issue! Also, be sure to check Adam's Blog for the latest in money making news online including recent posts on "How to Buy on eBay" AND "How to Sell on eBay"!
Update: In the last newsletter I mentioned that with the release of the new Auction Optimizer software you are eligible for 50% off (after the 10 day free trial). It came to my attention today that the "bonus code link" was NOT working in Internet Explorer. Many people tried signing up, but were unable to get their discount and this is why. It has now been fixed. You can learn more here: http://www.auctionoptimizer.com |
Finding & Selling New eBay Products:
Tips, Timing, and Insights
Selling on eBay is easy and doesn’t require extraordinary business experience. You can sell just about anything, and you have easy access to an enormous pool of potential buyers. Its no wonder new sellers are always looking for hot new products to sell on eBay. Potential sellers then have to decide what to sell and figure out how they can get their hands on that item.
Learning to pick a hot product before it becomes hot is a valuable skill that comes from knowing your market.
Question: I want to expand my eBay business. How can I decide what products will be best to expand into, and once I decide, where will I be able to get them?
Whether starting a new business or expanding on current success, new products can often translate directly into new profit for your eBay business
The key to having a successful business is to have confidence in the product that you are selling. If you do not have confidence in the product yourself, then you probably won't be successful at selling it. Careful market analysis will help sellers find a product or product line that has a great target market and is within the seller’s ability to locate, purchase and resell it.
Data collected in July of this year by one of the foremost research companies, ACNielsen, indicates that approximately 724,000 Americans rely on eBay for their main or supplemental income. The same study found that 1.5 million people generate some type of additional income selling on eBay. Last year approximately 200 million registered users sold over US$ 34 billion worth of goods on eBay.
What’s the big attraction here? Well, selling on eBay is easy and doesn’t require some extraordinary business experience. You can sell just about anything, and you have easy access to an enormous pool of potential buyers. Its no wonder new sellers are always looking for hot new products to sell on eBay. Potential sellers have to decide what to sell and then figure out how they can get their hands on that item.
Where Can I Find Products to Sell?
Anyone can find products to sell on eBay. Following is a list of a few common places to start your search.
Your Own Home
For most people just starting to sell on eBay, going through their own attics, closets and garages is the obvious first place to search. Get rid of all those items you store but that you will probably never use again. CD’s, books, clothing and antique items are among those items you will likely find. Think of items that you would sell in a garage sale. However, instead of pricing each item and lugging it outside hoping for a nice sunny day, you can advertise them on the Internet. Hot sellers on eBay are collectibles such as coins, stamps, or dolls. You can check out the collectibles category to get a better idea of what people love to buy. Anything that will move up in value would fall in this category.
Garage Sales, Pawn Shops, Bazaars and Flea Markets
Use caution here! Make sure that the selling value of any items you buy is enough for you to generate a worthwhile profit. You may want to avoid high dollar items until you get in the swing of things. One of the best ways to make good money on eBay is to sell small but expensive items. This allows you to move more items without the bulk of heavy shipping and to move fewer items while making more money. This type of selling provides you with a much higher profit margin.
Storage Units, Classified Ads and Auctions
If people don't pay their rent for the use of their storage unit, the contents are usually auctioned site unseen. Classified sections of local newspapers’ week-end editions are a good place to look for estate auctions. Again, use caution and research profitability before you buy. You may be able to find local businesses that liquidate manufacturer’s overstock or unsold items from other larger businesses.
Crafts
Local crafters are a good source of unique products, and may be willing to reduce their prices for you if you purchase in quantity. Either buy the item outright, or set up a consignment arrangement with them.
Trade Shows
Trade shows are a good way to identify and obtain new product. They are where many merchants gather in one place to look for resellers. To find trade shows in a particular industry, contact trade associations and industry publications.
Wholesale Suppliers
Some eBay sellers create a business relationship with suppliers. As you find reliable suppliers, you can be assured of the quality and bargain of the merchandise.
Drop Shippers
These are businesses that offer products for you to sell. These companies ship directly to the buyer so that you, the seller, don’t have to be responsible for warehousing or shipping. This is usually done on a contractual or commission basis where the seller acts as the agent between the buyer and the merchandiser. In fact, the merchandise sold does not actually belong to the seller. This is a strategy used by many small businesses. The Drop Ship option allows the manufacturer to sell more merchandise while the eBay seller makes money. Before entering this sales arena, sellers should understand clearly the contracts that are involved and realize that most of their profits will come from their ability to negotiate contracted rates with the drop shipping company.
What are the Best Products and How Will I Know Them When I find Them?
Certain product characteristics make products easier to sell online (including eBay). Some of them are:
• Items that are light and easy to ship
• Information that is downloaded (e-book or software)
• Items that not perishable or extremely fragile
• Items that can be clearly described without having to be seen and held
• Items that have little or no competition already from large online companies. These items are sometimes labeled as “niche” items.
After just one glance at the great number and diversity of items that are already being listed and sold profitably on eBay, you will know that there are numerous items that a business could begin to offer. Before deciding on a new product, there are a few important factors that must be taken into consideration. Primarily, you must try to determine how heavy the demand and competition is for each product under consideration. Below are some tips that will help narrow your product selection.
Expand Slowly and Cautiously
Some sellers on eBay readily sell anything you can imagine, however, it is often more profitable to focus in on something that you can specialize in and do better than any other seller.
Gauge Product Demand
You should never commit to selling a new product without trying to gauge what the demand for that product would be. Demand is the key to eBay business profitability. When it comes to selecting products to sell based on what's in high demand, timing is extremely important. New trends and products can be a great boost to business. Learning to pick a hot product before it becomes hot is a valuable skill that comes from knowing your market.
Online, there are several free tools that let you determine how often people are searching for a particular item. Remember that demand is always high for a product that is relatively new to the market. This high demand and low supply translate into higher prices. As demand increases, supply will eventually overtake it and prices will gradually move downward. At the end of a product’s popularity, liquidation stock in the market will cause prices to basically bottom-out. This will happen very fast, often in a matter of weeks not months or years.
Each seller must look at new product opportunities and gauge where in the product life cycle he would be entering and base their selling decisions appropriately. The chart below outlines this process in greater detail.
|
Demand |
Supply |
Business Implications |
Early
Life-Cycle |
High |
Low |
Product is very expensive early on in the product cycle, but if your sources can get you sellable product with a window of opportunity before it is available to the general marketplace, some of the highest margins to be made on eBay are to be made here. |
Middle
Life-Cycle |
Decreasing |
Increasing |
Selling here is where most traditional businesses compete. Higher margins come from efficiency, good supply relationships, and volume discounts. Sellers must constantly be aware of the upcoming shift to the end of the product life-cycle |
Late
Life-Cycle |
Low |
High |
Selling here is tricky, risky, and timing-intensive. The goal is to buy product in volume just as it hits liquidation channels but before demand has dried up as the result of market saturation or the public's anticipation of the replacement product. There is usually a window, here where sellers can make a profit by buying at liquidation prices and selling at near-retail prices, but this is a usually a very small window. |
Gauge Product Supply
A careful analysis of the competitive landscape is always important before jumping into a new market. If the market is already saturated with sellers who have better pricing and access to product than you, you may want to look elsewhere for more profitable business ventures
Marketability
Let's face it, it won't matter what products you sell if your customers aren't buying.
Profit Margin
The best selling products won't ever earn any real money if your margin is too small.
Plan Your Work and Then Work Your Plan: Putting it All Together
The end result of all this research should be one or more products that fit nicely into a niche market - products with some demand, and relatively little supply. Often the highest profits come when sellers focus on one niche product category, and offer a wide selection. These sellers are then the best online source for that particular category.
Some questions to keep in mind while selecting products for resale.
• Would you buy it and use it yourself?
• Can you see yourself getting excited about this product or service?
• Would you sell it to someone you know?
• Is there a real need for the product in today's market?
The key to having a successful business is to have confidence in the product that you are selling. If you do not have confidence in the product yourself, then you probably won't be successful at selling it. Careful market analysis will help sellers find a product or product line that has a great target market and is within the seller’s ability to locate, purchase and resell it.
Have the right tools can save you a ton of time and money when it comes to deciding what to sell, and auction research gives you the power to determine future profits based on past findings. It helps you avoid risk by anticipating drops in demand for a product.
Try AuctionOptimizer RISK-FREE for 10 Days
Beyond predicting buying trends, AuctionOptimizer helps you discover:
- Which Listing Features steal your eBay profits
- The optimal Ending Day that gives you the best chance of selling at the highest possible price
- The perfect Starting Price to fan the flames of a bidding frenzy
- The Auction Type that's right for your listing
In your first 10 days, you'll not only get unlimited use of the software - but you'll also you'll receive the 10 Lesson Course "Ten Ways to Mazimize Your Auctions."
You owe it to yourself to take the guesswork and risk out of your listings.
Try AuctionOptimizer free for 10 days. There's NO RISK - and you'll get some great research to make a ton of profits during the competitive holiday selling season. If you are not absolutely sure you'll increase your eBay profits by far more than the minimal monthly subscription price, you're free to cancel and never pay a cent. It costs you nothing to prove to yourself there's a more profitable way to eBay. Act now and save 50% off the regular subscription price!
Click HERE to See How AuctionOptimizer Gives You the Tools to Find Products and Sell Them on eBay with Confidence
Until the next issue...
Knowing No Boundaries
Adam Ginsberg
AdamGinsberg.com
Make Money Online
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Current news for ebay |
Yahoo! News Search Results for ebay
Class to teach eBay selling techniques (The Springfield News-Leader)Nellie Lamers, a University of Missouri education specialist, will be the instructor for a two-day hands-on training entitled, "Learn to Sell on eBay," a news release from the University of Missouri Extension said.
Jacko's pullover sells for 36,000 pounds on eBay (New Kerala)London, July 4 : A jumper from the days when late King of Pop Michael Jackson used to be a part of 'Jackson 5' has fetched a whopping 36,000 pounds on eBay.
Ticket for Jackson's memorial on eBay (KABC-TV Los Angeles)It only took a few minutes, but there is already a ticket to the Michael Jackson memorial service on eBay.
eBay Australia Partners with Marketplace for Services (AuctionBytes)eBay Australia has entered into an agreement with a marketplace for services. Shoppers on eBay Australia who visit the new Services portal can continue to see eBay listings in categories such as "Transportation, Shipping," "Weddings, Parties," and "Lawn, Yard," or they may get a quote from a service provider, in which case they are seamlessly sent to the ServiceSeeking.com.au website.
Will: Can former eBay CEO Whitman sell California voters on her reform agenda in gubernatorial campaign? (Fort Worth Star-Telegram)The hard-charging former CEO vows to rein in out-of-control taxes, unions and ballot measures.
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