eBay offers a great opportunity for sellers – with 168 million active buyers, and around 2 billion transactions taking place every day, it’s a great market to get into. There is one catch, though, and it’s quite a big one – you will need to compete with 25 million other sellers, and your items will have to stand out among 1.1 billion live listings.
There are dozens of books out there that make it all sound so easy. You can make a fortune with dropshipping, according to the books. What they don’t tell you is that many other sellers have been reading the same books and have the same strategy.
If you want to make real money, you need to put in some real effort. And that means doing a lot of research upfront. It’s true, dropshipping is the easiest option, but it is not going to make you real money unless you have the right product and are willing to market it.
If you want to make a lot of money, you need to find a high-profit niche product that there is a real market for, with few competitors in it.
Leverage Your Expertise
Are you an expert in a particular field? Is there something that you are passionately interested in and know a lot about? Something that you could use to your advantage as a seller?
It is possible to find a profitable niche product that you know little about, and then research it thoroughly. The problem with this is that you are learning about the product as you go along. And there is a good chance that your clients will understand it better than you do.
If, on the other hand, you choose a product that you know something about or have experience with, you have certain advantage. You will know all the basic details, how to clean and care for it, what most users are looking for, and what potential snags there might be as well.
You will be able to find selling points that will resonate with your target audience.
Let’s say that you collect vintage snow globes, for example, and you decide to start selling these as a eBay niche item. You will know where to source them from, what prices you can expect to pay, what problem areas might crop up, and know something about the items themselves.
So, when a serious collector asks you a question about which period the globe is from, you will be able to answer. And, if someone asks irrelevant question like, “Can I store the liquid inside?” you will have a polite answer for them as well.
The WRONG Way To Run Your eBay Niche
As you can see in the video, I got into the Japanese bath bomb eBay niche for all the wrong reasons, when it came to ship my item I didn’t have any stock!
High Demand = High Competition
How do you figure out whether the item you are considering to sell is going to be a hot seller or not?
Going back to the example with snow globes. It doesn’t sound quite as glamorous as selling smartphones, and you would probably make more money off the latter.
Part of your reasoning would be right. Smartphones are hot items and in high demand. You can sell them at a decent profit. Selling smartphones seems pretty lucrative.
The problem is that you are not the only one that comes to that conclusion. A lot of other people want a piece of the action as well.
Good luck with being able to rank high in search queries for the smartphones category. And, if you don’t rank high in the queries, you are going to have to spend an inordinately hard time marketing your phones.
Remember one simple rule – the higher the demand for an item is, the higher the competition is. You want to find an eBay niche where there is enough demand for it to be profitable, but not a lot of competition.
Try typing in “smartphone” in the search bar. There are over four million listings on eBay. It would take a serious promotion and possibly highly discounted price to get someone in to have a look at your store.
Now try typing in “vintage snow globes.” That brings up around one thousand listings, something that is a much more manageable number. Those snow globes are suddenly looking better again, aren’t they?
Is There Enough Demand For Your eBay Niche
Now, before you go charging ahead and buying every snow globe you see, you need to figure out how much demand there is for such eBay niche items. Look at eBay and see what kind of price range its users go for. Are there only a few sellers because no one is interested or because it is an undiscovered eBay niche?
Look at the price range for the snow globes. They range in price from about $20 on average to as much as $2000 for the extremely rare ones. How would yours rate on this scale and compare to what is already listed on eBay?
What is Your Unique Value Proposition?
You could just go out and list your snow globes. But, for your eBay niche to be profitable, there will have to be some kind of demand already and also some suppliers. Now, the snow globe market is not quite as big as that for smartphones but there is still significant competition.
You need to establish your unique value proposition before you open the store. What will you offer that your competitors don’t? Why should people buy from you instead of your competitors?
You could, for example, drill down into your eBay niche even more. Maybe you could specialize in the century snow globes, or snow globes that still have their original boxes, for example.
The key to getting your eBay niche right is to specialize to a point where it is still profitable for you, but where the competition is minimal.
— Ike Paz (@IkePazz) March 19, 2018
Back to the snow globes, if you specify “Vintage, Retro, Mid-Century”, you end up with only about twenty listings. Getting to the top of that specific page is a lot easier, but you will have to determine whether or not there is enough money in it.
Where Will You Get Your Stock?
As I mentioned earlier, there is a listing for a snow globe that comes in at $2,000. Needless to say, that would be the type of globe that most people would like to sell regardless of the eBay niche that you’re in. The reason that it is so expensive, though, is because it is rather rare. Finding a similar globe would be difficult, and that’s why most snow globes go for the highly discounted price of 5 bucks.
And that is something that must also be considered. You cannot match the demand if you have no supply!
Finding the right eBay niche seems a little like magic. But, like all good magic, the more you practice the trick, the better you get at it.
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Did you get the info you need on how to find an eBay niche? Please let me know in the comments section if I missed anything.