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July 17, 2008

Ebay Niche Markets: Realism Important For A Profitable Niche On eBay

There is zero doubt that eBay niche markets can be extremely profitable. The problem is that if you're going to build a niche on eBay you shouldn't make a hasty decision because it could cost you a good deal of time and money. The easiest way is to see what other sellers are doing and take your cue from them because here is a truth ... competition is a GOOD thing. If there's no competition, there is almost never any demand, either.

Many Ebay sellers focus on just one niche while others specialize in a handful of niches. If you know some particular area very well, that's an obvious place for you to concentrate. For instance, antique sellers would have a huge advantage over me because I know zilch about antiques and collectibles. An expert, or even semi-expert, can recognize items that are "hot" {I really get tired of that word!} and which ones will languish on the shelves for years.

Once you have chosen a niche or two, it's time to become more organized. Personally, I like using webpages for organization but most folks use spreadsheets. Regardless of you choice, here are some items to consider:

1. Name of item or market {antique "salt & pepper shakers", Barbies or typewriters}
2. Approximate monetary value on eBay
3. Approximate monetary value off eBay
4. Cost of eBay advertising
5. Cost of off-eBay advertising
6. Your acquisition costs

NOTE: It's critical to be realistic when creating your records above. Success in an eBay niche market certainly doesn't depend on rose-colored glasses or positive thinking. Always remember that this is a business.

To figure out your sales value on eBay you need to do some research. If you don't have a research program like Terapeak {the best!} available, then use eBay's Completed Auctions form and get some prices. It isn't powerful and well-arranged like Terapeak, but it's free. Whatever the "average" price is - and that's hard to figure out without Terapeak or other research programs - you will have an approximate idea of what you can expect to receive for your treasures. Keep in mind that there are factors that influence price, whether negatively or positively, like condition or your skill in writing listings. Obviously, a beat-up widget will sell for less than one in excellent condition.

Realistic research like this will help you to determine if the eBay niche markets you are considering are truly worthwhile. If not, back to the drawing boards to find others. The important thing is to never, ever give up.

 

Posted by SydneyJohnston at July 17, 2008 8:57 PM

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