These days, many people are scrambling to start their online business because of the massive potential that exists for entrepreneurs. Starting an Ebay business is hands down the easiest and fastest way to start your very own online business.
There are no guarantees that your Ebay business will be a success but when compared to other online business models, the barriers to entry are very small and the potential for profit is huge. But before you rush out to start your Ebay business, here are a couple of tips to follow that will increase your chances of success.
The first thing you must do before you start your Ebay business is to decide on what exactly it is that you are going to sell. You can sell just about anything in the world on Ebay but you have to perform some market research to determine what market you should enter. The trick is to find markets with lots of demand and little competition.
A good way to do this is by using Ebay’s market research tool which only costs about $10 per month to use. With the market research tool you will want to examine the Sell Thru Rate (STR), the total number of sales in the last 30 days, and the average price per item.
If the STR of a given market is above 50% and the total number of 30 days sales is greater than 1,000, then the market will be probably be worth entering. The STR is determined by looking at the total number of successful auctions (auctions that ended with a sale) and dividing by the total number of auctions for that period.
Once you have decided to enter a market you can use the average price per item to determine how much you need to buy each item for. To determine your cost per item simply deduct your desired profit margin from the average price.
By this point you have determined a market to enter and have also established a price and acquisition cost per unit. Now you will need to turn your attention to locating a reputable wholesaler who can provide you with products at or below your average cost per unit. In many cases you can actually find wholesalers right on Ebay.
Most of the subcategories contain listings for wholesalers who sell wholesale merchandise in that same category. For more specialized products you can use the paid service at worldwidewebbrands.com to locate reputable dropshippers and wholesalers.
The biggest mistake you can make is to get emotionally attached to a product offering before you do market research. Taking a couple of hours to do market research can show exactly what you need to be selling. If you can find items to sell on Ebay you can just as easily locate a wholesaler and start reaping huge profits. Whatever you do, don’t fall into the trap of selling something just because you happen to like it.