Deciding What to Sell
Saturday 07 November 2009
by SaleHoo.com
My name is Justin and my partner and i have joined SaleHoo quite a while ago. We were both very skeptical about the types of deals we were shown but decided why not just give it a look at. Since then, we have made our money back 60 times over and are growing more and more. We sell a little bit of everything and are now stocking out 2 shops, and its all thanks to SaleHoo ....Champion web site with champion leads to some of the best suppliers and manufacturers around the world. YOU WILL NOT FIND ANYTHING ON THE NET BETTER THAN THIS SITE FOR MAKING MONEY...Or just to get a bargain for yourself...Ive joined a few similar sites and only SaleHoo prevailed and came up with the goods. So far we've specialized in Adult entertainment, lingerie, toys, DVDs, playstation and xbox 360 games, jewelry, remote control helicopters and are now dabbling in electronics. I've told people about SaleHoo and they don't want to spend the $50 for joining...BUT continue to buy things from me at over 400% of what it cost me. A true god send...Get on here asap..It WILL BE WORTH IT!
Want to be the next SaleHoo success story?
Hi there! What's the difference between a casual seller and and leaving your day job to focus on selling on eBay full time? Plenty! In this newsletter, we'll be looking at the all important factor: what you sell.
Unless you come from a long line of hoarders, it's quite likely that the contents of your attic won't be able to sustain your income over a long period of time!
Becoming an eBay powerseller involves:
- Keeping up with what's hot.
- Finding a product that you can get a cheap, steady supply of, that will sell well, and that is easy to store and ship.
- Treating eBay like a business.
Just as with any business, deciding to sell seriously on eBay requires your careful thought and planning. In order to use eBay to its full profit potential, it's vital that you think like a business owner rather than a hobbyist.
So what do you need to consider when deciding what to sell on a large scale?
1. Is your item Hot or Not?
Knowledge of current trends is indispensable when choosing a product to sell.
It's a fact: some items sell much better on eBay than others and it's vital that you keep a constant eye on which items are being scooped up as fast as they are listed, and which stagnate and sell for less than they are worth.
But don't worry that your choices will be too limited: currently, there is growth in all of eBay's major categories so you have quite a lot to choose from!
Some items will always be popular, some are extremely popular for short bursts of time, and other items don't get much interest at all - ever.
As I am writing this lesson, eBay is currently ranked the number 1 fashion site - labels are particularly popular - and iPods are a sizzling hot item. It's quite likely that eBay will remain a popular fashion-shoppers Mecca in the future, but you can be fairly certain that new technology will relegate iPods obsolete in the next couple of years. The categories that tend to consistently do well are electronics, sporting goods, housewares, jewelry and collectibles - not necessarily in that order. What may come as a surprise is two new categories that are doing very well: eBay motors and eBay real estate.
But don't people want to look at such big-ticket items in person you may ask?
Incredible as it sounds, people seem more than willing to buy expensive and subjective items just from a photo and a description! It turns out that people love the freedom eBay gives them from sleezy car salesmen and overbearing real estate agents. And sellers know they are reaching a much wider audience than they would otherwise and feel they are receiving a fairer price because of it.
While I certainly find it a little frightening that people would buy a property without seeing it, eBay property auctions are not legally binding. Auctioning your house on eBay doesn't mean it is a done deal. It's a great way of advertising to a wider audience and gaining a strong sales lead, but it's not set in stone the minute the auction ends. Phew!
According to eBay this form of bidding is taken as a serious indication of interest on behalf of the bidder. Needless to say, eBay take a very dim view of insincere bidding.
2. Where do I find information on trends and hot products?
eBay itself is proactive in helping more people become powersellers. The Seller Central page http://pages.ebay.com/sellercentral/ is particularly helpful for new sellers as it provides hot lists that reveal the top search terms or keywords by category.
The information available is up-to-the-minute hot and gives a constructive amount of detail. For example, I can easily find out whether computer buyers using eBay prefer to use laptop or notebook as their main search term.
You can discover the top 10 most searched-for items, lists of hot and super hot items, and much, much more. There is also a merchandising calendar that tells you the top selling categories for particular times of year.
All of this information is multi-purpose. Some sellers may choose to use this information as a way of seizing and capitalizing on new trends as they come along. Others may opt to use the info to decide on a product that sells consistently well over time. A few sellers may even prefer to ignore the hot items and forge a path of their own by selling something niche!
None of these options is necessarily better than the other. In fact, it is quite usual for a powerseller to test the waters by experimenting with more than one item.
Another place to get research is Andale. For a small fee of $3.95/month, Andale.com provide information about hot sellers on eBay.
3. Experimentation is the key...
Unlike other business models, eBay gives you the freedom to experiment. You might, for example, try selling cosmetics one week and electric drills the next. They might not sell at all, or you may find that cosmetics sell better and are easier to handle than the drills. All this information is valuable.
The beauty of eBay is that this flexibility only costs you as much as the few items of inventory and the listing fees. Where else could you get such control?
**Did you know??**
Studies have shown that in online auctions, consumers frequently under-search, and consequently overpay, for widely available commodities such as CDs & DVDS. Incredibly, 14 DVDs sell every minute and 2,500 children's VHS tapes sell every day on eBay.
4. Innovation and Bonuses: Creating buyer incentives
Generally, the products that sell best, sell because of inventive sellers who are able to differentiate a commodity product through eye-catching listing information and innovative sales tactics such as 24-hour shipping or bundling an entire solution.
Others offer free bonuses as another incentive. Adam Ginsberg, powerseller and author of How to Buy, Sell, and Profit on eBay, recommends differentiating yourself by offering something for free. For example, when you purchase one of his LasVagasTables, you will receive the rack, cue sticks, balls and chalk for free.
Unlike other businesses, it's not necessary to be passionate about what you are selling (although that will make it easier) with eBay, you just have to find people who are willing to buy your item.
Don't be afraid to try new things. So many people are afraid of making mistakes, and so few try new things and become trendsetters. Yet, the best practice that you can employee with eBay is to be a pioneer with your approach to your product and how you sell it.
Product Practicalities
Sometimes, popularity isn't enough to make an item right for you to sell. For instance, swimming pool kits might be hugely popular in the summer time...but do you want to live on crusts over the winter? And what if it costs $100 just to ship the darn thing?
So before you jump in the deep end and buy 300 shot put balls to sell, here are some issues to consider:
- Costs/Budget: How much will it cost you to get the inventory? This includes shipping and ability to absorb any additional costs if the product arrives damaged/in a non-saleable condition. Do you have the budget or will you have to borrow money?
- Storage: Do you have room to store and package the items?
- Shipping: Is the item going to be easy to ship? A fragile or very large item may create logistical difficulties and crippling costs. Bear in mind that shipping delays are a major cause of negative feedback.
- Product life cycle: How long can you expect interest to remain high in your product? Fads and trends may give you immediate profits, but it's quite likely that they won't give you a sustained income for very long. Will you be able to flow with the fashions?
- Season: Lawnmowers don't sell as well in winter - neither do sandals. If you have the space, you can buy unseasonable items cheaply and resell them for a profit when the time is right.
**Did you know??**
The most expensive items ever sold on eBay were:
- Gulfstream II jet: $4.9 million (the eBay fee would be over $70,000!)
- 1909 Honus Wagner baseball card: $1.65 million
- Diamond Lake Resort, western Kentucky: $1.2 million
- Shoeless Joe Jackson's "Black Betsy" baseball bat: $577,610
- Round of golf with Tiger Woods: $425,000
Where will you find your inventory?
Even if you think you've found the best product, it's not going to be of any use unless you can find a reasonably-priced and reliable source.
Here's a list of possible product sources:
- Your home: Good for one-off items, but probably not enough to sustain you as a power-seller unless you are a packrat or have a stamp collection to sell. On the positive side, many homeowners who do a systematic survey of the stuff they have in storage that can easily be sold on eBay realize they could easily make $5,000.
- Flea markets: An excellent source for cheap knick-knacks and handcrafted items - not usually that good for a long-term supply though.
- Garage and yard sales: The traditional bargain hunter's lair. I once found a brand new Polaroid camera for $10 at a garage sale that I sold for $50 on eBay.
- Estate sales: Great source of antique jewelry lots, vintage clothes and furniture. Offer to buy the entire lot for a set price. However, if a professional is doing the selling, you're not so likely to get a bargain.
- Established retailers: Stores need a way to move items that aren't selling. Try approaching stores near you and offering to purchase left-over stock in bulk.
- Discount stores: Clearance stores are a good way of finding good quality, out-of-season items at bargain basement prices. These have the potential to reach much better prices on eBay than what you paid for them.
- Friends & family: Tell them to give you any items they are considering throwing away - their trash could be your treasure.
- Wholesalers: As your business grows, it can be a good option to buy directly from wholesalers. More about this is in later lessons.
Work Book
List some product ideas that came to mind while you read this lesson. Do some research. Go to Seller Central - are these items in the Hot or Super Hot categories? If so, great. If not, try again.
Useful Links
- Ebay Seller Central http://pages.ebay.com/sellercentral/
- Andale http://www.andale.com
