When It Comes To eBay, Don?t Follow The Herd

Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in. The big question is: what is the hot product to sell on eBay to make money fast? -- Bob D.

A: While it's true that selling products on eBay can be a quick, low cost way to launch an online business, following the herd by selling the "hot product" of the moment, is not a great idea. To the contrary, chances are you will be stomped in the ground by the herd and left lying in the dust with your unsold inventory in hand.

We talked about starting a profitable eBay business in a previous column and the advice I dispensed then still applies today.

The most successful eBay sellers are those who understand that success on eBay relies on many of the same factors as success in a brick and mortar business.

· Smart sellers research the marketplace and the competition to determine the salability and profitability of the product.

· Smart sellers test the market with one or two before committing to a product line and tying up their cash reserves in inventory that may never sell.

· Smart sellers adjust their product offerings until they find a product or product line that sells consistently.

The last point is perhaps the most important. Long term eBay success does not come from "one off" sales. The key to real eBay success is to find a product that sells well and sell that product over and over and over again.

I asked Timothy Mina, author of the new book, The Online Auction Expert's Bible To Selling on eBay, his thoughts on launching a successful eBay business.

Why is eBay so attractive to entrepreneurs?

"With an eBay business, you set your own hours and set your own goals," Mina said. "You can work as much or as little as you want and whenever you want. Many sellers supplement their income by selling on eBay and many others have turned it into a full time business."

Mina cites the following reasons for eBay's growing popularity among entrepreneurs who want to start an online business:

· You can start up quickly and don't need special skills.

· There is very little risk and investment required to get started.

· The marketplace is huge. There are millions of potential customers waiting to buy what you're selling, 24 hours a day, with the click of a button.

· No stress, no boss. Yes, there is work involved, but the work can be done at your own pace. You are your own boss and you set your own schedule.

· Most importantly, you can follow your passion and do something you love. If you sell something you enjoy selling, online auctions aren't just profitable, they're fun and exciting, too.

Why It's Critical To Find Your Niche?

Mina recommends creating your eBay business with niche items. According to Mina, the benefits of targeting a specific niche market include:

· If you are going to rely on eBay as your primary source of income, it is essential that you find your niche. If the goal of your eBay business is to earn enough money in your spare time to make your car payment every month, it is less important, but still highly recommended.

· If you find a profitable niche, you will become a certified guru of the items you sell you will ideally be the only one on eBay offering the products.

· Your expertise will make it ten times as easy to spot bargains when you're shopping for products to resell. Bargains might be all around you, but if you don't know anything about what you're selling, you won't know how to spot bargains that are right in front of you.

· You will find different ways to add personal value to your products. These low cost add-ons or unique twists to your products will drastically increase your sales and profits by making your items unique and desirable.

· You will have little or no competition from other sellers, so you can corner your niche market.

· By dealing with the same type of customer over a long period of time you will get to intimately understand the mindset of your target customer and what your customer wants. This will help you sell your products better and allow you to market your products in ways others haven't thought of.

· You will be knowledgeable and enthusiastic about what you sell, and you will be attentive to your customer's desires. This results in satisfied customers, name recognition, and a lot of repeat business.

· You're going to find something you're passionate about and specialize in it. If you love what you're doing, you have a much greater chance of sticking to it and loving it. So it won't even feel like work ? it'll be like you're getting paid to play.

How do you find your niche?

So how do you find your niche? Mina recommends doing an inventory of your hobbies and interests to help you identify a niche you would enjoy working in.

Ask yourself:

· What are you passionate about?

· What do you collect?

· What do you like to read about?

· What do you do in your spare time?

· So you have a favorite pastime?

· What was your major in college?

· What jobs have you had?

· Are there any other fields in which you have a great amount of knowledge?

· What clubs do you belong to?

Mina also recommends that you spend time on eBay studying the category listings. This may give you additional ideas for hobbies you can turn into an eBay business. Once you have defined your hobbies or interests, brainstorm how you can turn them into a business.

· How can you turn your expertise into a product?

· How can you add value to current products related to your interest?

· What product can you sell that may be one of a kind and have little or no competition?

· Can you think of novel ideas that people who share your passion would love?

· Is there anything related to your hobby that you can create yourself? An ebook or a how to, perhaps?

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest books include "Small Business Success Secrets" and "The 30 Day Blueprint For Success!" Related Links: http://www.smallbusinessqa.com http://www.dropshipwholesale.net

---

eBay Listing Service : Make Managing Your Auctions Easy

Do you want to have a lot of auctions going but don't have time to keep track of them all? Trust me, you're not alone. With more... Read More

Taking Paypal on eBay

Accepting Paypal as a payment method might increase your selling prices and your profits. This depends on what you are selling. I sell collectibles to collectors. My... Read More

Hurricane Katrina Donations Could be Many Millions More - EBay Sellers Try in Vain to Help

Yesterday I saw a mention in someone's email ezine about a kind person who had an eBay auction with the proceeds going 100% to help victims of... Read More

eBay Auction Sellers Guide to Finding Hot Money Making Products

You might be one of the thousands of individuals who open a trading account with eBay and dream about making auction selling a full-time home-based business.However, before... Read More

How To Compete With Amazon.com

If you are selling online,here is the down side of our business....you will never be able to compete with Amazon. (Or Kmart, or Target, or any other... Read More

Using Paypal for eBay Purchases

Paypal is the preferred payment choice for many buyers because Paypal allows buyers to pay instantly for eBay purchases. In this article, we will review using Paypal... Read More

Making Money On EBay Can Be So Simple, Just Let Somebody Else Do All The Hard Work For You

OK, so you've been bitten by the eBay bug!You've ransacked the attic, the basement and every other room in your home to find things to sell on... Read More

Why 95% of All eBay Sellers Fail

eBay is now the 8th most visited site on the internet and it has just one purpose - sales. With 40 million visitors per month most eBay... Read More

City Police Auctions of Personal Property and Autos

About City Police Departments AuctionsThe City Police Departments handle and store all evidence and property that is seized or found until it is needed for court, returned... Read More

Selling Effectively on Ebay Motors

Remember back when selling online was a new experience? Dealers tried everything to sell their vehicles online. Today's market has expanded to include several hot online marketplaces... Read More

EBay Income Possibilities

If you've ever read an article about eBay, you will have seen the kinds of incomes people make ? it isn't unusual to hear of people making... Read More

When is Wholesale Really Wholesale

You've finally found the wholesale source for the high demand widget that is selling like hotcakes on the Internet. Thoughts of watching the money pouring in and... Read More

Finding Products to Sell on eBay

Do you know how many people in US are earning their livelihood with the help of eBay? According to a new survey conducted on July 2005 by... Read More

Multiple Income Streams on eBay within 30 Minutes!

POWERSELL Status, the secrets revealed.If like thousands of people you have been using eBay and wondering how to gain a regular income, and work from home, this... Read More

Bananas - Your Source of eBay Packing Materials!

This is the most boring stage of the process and subsequently where some eBay sellers let themselves down. If the buyer receives thier purchase poorly packed and... Read More

Auction Image Hosting for Ebay Auctions: Free Single Most Recommended Tip

It is a well known fact that the more pictures taken of an item, the better it will sell. Not only will you get more bids, but... Read More

The Down Side Of Using Dropshippers In The Ebay Auction Arena!

Ok, let me just say right up front that I am not against drop-shipping! I love the concept. If you are dealing with a particular wholesale drop-shipping... Read More

Online Auctions Business

Online auction sites are a great way to find a bargain on almost anything and an excellent way of getting the best price for selling something of... Read More

Photos on my eBay Auctions: How Do I Add Them?

On another forum I'm involved with, someone's asked a great question: I want to sell products on eBay, but I want to include photographs with... Read More

Royal Memorabilia ? An eBay Prince or Pauper?

There has always been a fascination with royalty and as a niche area for collecting and auction trading, it is still a relatively accessible market. And it... Read More

The Top Ten Tips For Auction Success!

If you were to look through eBay, or any other online auction site for that matter, you would find that many people make some very basic mistakes.... Read More

Shipping Supplies For Your eBay Auction Business

Auction supplies are clearly an expense and major consideration for an eBay auction business. Of course, the most critical supply is the item you are selling, but... Read More

Online Auction Sellers - Seize Control Of Your Business!

As the online auction model of business continues to evolve toward a more commoditized, corporate marketplace, it is time for online auction sellers to seize control of... Read More

Finding Antiques And Collectibles To Sell On eBay

Many people who decide to make a living selling collectibles on eBay soon fail. I meet them in the line at the post office. They tell me... Read More

Boosting Your EBay Auction Profits: Just Add Audio

According to a recent report, adding audio to your eBay auctions could increase bids by as much as 22% over auctions without audio.A recent trend showing up... Read More

Can You Really Make Money Selling New Release CDs & DVDs On eBay?

Being an active eBayer, I am often being asked about products to sell. A common question is "Where can I purchase products such as new release CD's... Read More