To find a good product is not very easy. With easy access to information today, good products are spread out very quickly. There are tons of giant online retailers out there and they keep adding new products into their product lines everyday, to directly compete with them is no difference to suicide, however don’t be disappointed. Niche products are found everyday and you don’t need to have the best price in order to have your products sold. To start a solid market research helps you on future growing and avoids overheated competition from the beginning. In today’s post, I will share an overview of market research to look for a good product to sell on ebay.
From the graph on the left side , there are 4 important steps you need to go through to find a decent product.
1. Have a product in mind. This is your niche and you need to know why you are selling this products and what kind of customers you will be dealing with the future. There are some debates out there talking about if you should sell something you have true passion or you should sell something you have absolutely no idea, or something in between. personally I have proved that any of these three types of product will work and to me there is no one better than others. However I want to share a few tips here.
a) If you are selling something you really enjoy, do not fall into the trap of using your emotion to judge your customers. You need to understand every person has different opinion on the same product, so you don’t want to assume all your customers have same passion and same feeling of the product as you do. Depending too much on your own judgement, you will most likely overestimate the importance of your product and might end up overpricing them or easy to become very emotional when dealing with issues.
b) To sell something you do not have idea is more subjective, but what you want to focus is spending enough time on learning the product features and understand how it work. For example, when I first started one of my hot selling products, I had no idea how to answer the technique questions from the customers, luckily I have a very good support team backing me up from your supplier. After 3 months, I experienced enough questions and learned a lot about the product, I became an expert of the product and help lots of customer by providing answers in a very quick manner and win the customers by providing the best customer services.
c) The third category is easier to handle as it’s in between, but remember keep learning and improving efficiency if always the key.
2. Once a product is decided, you need to run detailed research on ebay to check for existing competitions. If you come across a very good product, but can barely find someone else selling it on ebay, be careful, check ebay’s policy and make sure that type of product is allowed on ebay as there are certain products are forbidden on ebay such as adult toys, tabacco and alcoholic beverages, just to name a few. If everything looks fine, good luck. You must have found gold. Go right ahead to crush it! In most cases, the following are true: products with more competition leads lower profit margin and products with less competition results higher profit margin, but less volume. What is ideal?well, pretty much nothing. If a niche product is so popular and the existing competition is so low, more sellers will appear very soon.
3. I put supplier research to the 3rd step, but you can actually change the order of it with ebay competition research (step 2). Feel free to find suppliers before you do any ebay research as long as you have a product in mind. Suppliers can be found locally or from all over the world on the Internet. To find a good supplier is only the first half of the step, more importantly, you need to make sure that they can work with you. Unfortunately the fact is lots of suppliers do not even work with retailers directly. I will explain the reasons in more details in my future posts.
4. Price analysis is the last step before you start your listings. This step makes sure it’s reasonable to sell the product you chose. Even you are not running a physical store, there are bills you need to pay mainly with ebay and paypal. If you are other tools to help you with your efficiency, there is a good chance that you need to pay a little more. I tried hard to keep my expenses to very low, but I still have to pay a minimum of $75 for each of my ebay accounts without selling any product.
Congratulations If you have gone through the 4 steps above! Very likely you found a good product and ready to put in your hardwork upfront. If you get stuck in any of steps 2-4, do not worry, it’s still early to change your mind and start searching a new product all over again.
In my nest few posts, I am going to explain step 1-4 in more details by providing tools and also explain how to use those tools. I will use YouTube video to help my demonstration and today I am proudly announce here, I just made my first your tube video on YouTude. Please use the following link to check it out and I hope you like my face!