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 entrepreneurand 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.comhttp://www.dropshipwholesale.net

More Resources

Auction Seller Guide To Success
When its time to clean-up around the house, some people havea hard time deciding what to keep and what to throw out.What they need is an incentive.
Taxing Your eBay Profits
As a small business person-slash-advice columnist I dread the first quarter of the new year. Not because in my mind my own business fortunes start at zero again every January or because I have already dismissed every New Year's resolution I made when the clock rang out the New Year.
Six Steps Towards Successful Buying at eBay Auctions
Buying on eBay can be very rewarding, either in terms of being able to pick up items cheaply or for hunting for hard to find items. Although generally the experience is good, there are instances where things can go badly wrong.
Real Estate Auction Action - Buying A Home At Auction
Due in part to the popularity of the U. S.
Drop-ship or U-ship: That is the Question
For small Internet retailers, drop-shipping is one of the best innovations since sliced bread. How else can a start-up offer a wide variety of products and convince customers that they have a fully-stocked warehouse-while investing virtually nothing in inventory or warehousing? Before you jump right onto the drop-shipping bandwagon, however, there are some pitfalls to avoid.
eBay Consignments: The Giant Opportunity Hiding on eBay (Part I)
More and more, people are becoming aware that they have potential cash sitting in their closets, attics, and basements. But not everyone has the time or the know-how to tap into it, so these items remain where they are or are given away.
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. And, they repeat these mistakes over and over again.
eBay and Dropshipping - A Perfect Fit!
eBay and Dropshipping go together like a hand in a glove. As you read this article, right now, thousands of eBayers are running there own auction business.
How to Win on eBay
I've bought over 100 items on eBay over three years and am ready to share my knowledge of how to win at eBay and buy from reputable sellers.1.
Game Theory, Nobel Prize, & Auctions - Auction Primer Series - Part 1
William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:"Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance"Auction and Bidding Games", 1962, Recent Advances in Game TheoryIn 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item.
Dropship Your Way to Success
Many people know they would like to start an Internet business, but they don't have a product to sell. The solution is often drop shipping.
From Ebay Zero to Power-Selling Hero: The Devil Is In The Details
If you've ever heard the expression "the devil is inthe details," you can probably already guess how itrelates to today's lesson. The bulk of the work youdo as an Ebay seller will be easy and repetitive, but it is the minor details that will make or breakyour business.
Start Your Own Business: Sell Things on eBay
The popularity of online auction site eBay has beenlegendary. With millions of transactions completed daily,it is no surprise why many individuals who do not usuallyshop online regularly purchase items through eBay.
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 but there is the largest online marketplace, Ebay.
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 eBay.When friends and neighbors ask you where everything has gone, you tell them that you're going for the "Minimalist Look".
Traditional Marketing Techniques for eBay Auction Ads
Ya know, I sort of giggle when I look at an ad on eBay that's just a black and white description of the item or product that's up for bid. It wasn't long ago at all that I would have done the exact same thing, but once I understood some traditional marketing techniques, not just been exposed to them; everything looked totally different.
How to Locate Drop Shippers for Your Success
Like the human heart, drop shippers can keep the blood pumping in an internet business. Often, they can be the key to success for online retail businesses who do not wish to stock actual inventory.
Buying Used Dell Laptops, PCs and Servers on eBay - How to be successful
Two years ago I needed a way to refresh more PC's and Laptops at my company without spending more. New Dell laptops were great but expensive and over the years we had accumulated many Latitude C series parts.
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.
Losing Sales By Overcharging For Shipping And Handling
As a serious seller on eBay you're familiar with their fee circumventing rules. If not, visit: http://pages.

More Auction Information:

Related Articles

How to Double or Even Triple Your Net Profit Selling on eBay
eBay Search tips and secretsThis is an example of how I used the Ebay search tab to triple my sales and profit in 1 month!I had found a great supplier of computer liquidation products using my Ebay Power seller Cloning techniques. I was excited to be selling over $1000 a day in these products (laptop parts and accessories).
eBay The Mega Marketplace For Everyone
eBay is one of the world's largest market places with over 35 million visitors per day. That first sentence is worth repeating because I want you to realize that eBay gives you the ability to reach a customer base of millions and millions of people which is beneficial to you.
Start Selling On eBay - Getting Started On The Right Foot
You've started your own eBay business and, even though it's part time right now, you know it's going to become a huge success. You are able to see the day when you can set your own hours, set your own dress code and call your own shots.
Importing Products to Sell on eBay
The interesting thing about online buyers is they are extremely price sensitive. A survey done by Forrester Research shows that 73 percent of surveyed online buyers expect prices on the Internet to be cheaper than in stores.
Drop Ship Your Way to eBay Profits
One of the most difficult things to do when looking to start an online business is to find that elusive supplier that will supply you, put simply you need a source of real products to sell. Drop shipping is a perfect way to achieve this and lets you develop the perfect online business.
eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay
The Problem..
Online Auctions: The New Way of Shopping for Mauritians
Since their introduction several years ago, online auctions, such as eBay, have been one of the hottest destinations on the World Wide Web. Auction sellers are attracted by the prospect of a broad venue for their products and the possibility of high profits.
eBay - The Basics
I began selling on eBay in 1999 and have found it to be an enjoyable and profitable experience. I had owned a retail computer store for a few years and decided to close it.
12 Tips To Make Your eBay Business More Profitable
Sometimes it's the simple things that can make your eBay business more profitable and run smoother. Here are twelve things you can do that will lead to more sales and increased profits on eBay.
Joint Venture For eBay Success Too!
Whether you're succeeding in your online auction attempts, just getting by, or failing to make money; Joint Ventures Can, and almost certainly will, Multiply Your Income Without Spending A Single Penny!Joint Venture, or JV, is a big general term for setting up creative ways to cross promote or cross market with other people Just Like You.How do I know.
Six Steps Towards Successful Buying at eBay Auctions
Buying on eBay can be very rewarding, either in terms of being able to pick up items cheaply or for hunting for hard to find items. Although generally the experience is good, there are instances where things can go badly wrong.
Top 10 Free Online Wholesale Resources
By the time that a product has made it to your local retail store, it's probably changed at least three people's hands, possibly even more than that. And each one of those people had to mark up the cost of the item to cover their investment and make a profit.
The Top Ten Antique Categories On eBay!
Knowledge is Power! And this statement could not be more true when it comes to selling on eBay. As explained in my book "eBay Marketing Wholesale SourcePak", being successful on eBay all depends on being in the right place, at the right time, with the right product.
How To Compete With Amazon.com
If you are selling online,here is the down side of our business..
How to Locate Drop Shippers for Your Success
Like the human heart, drop shippers can keep the blood pumping in an internet business. Often, they can be the key to success for online retail businesses who do not wish to stock actual inventory.
8 Top Tips For Successful Art Auction Listings
Why is it that some artists seem to make easy money on eBay whileothers struggle to break even? Seller A and seller B could be selling paintings of the same calibre, yet seller A turns a good profit year in year out and has Powerseller status, while seller B struggles to even make a profit at all. Often it has a lot to do with the look of their auction listings.
From Ebay Zero to Power-Selling Hero: Using Feedback Effectively
When I talk about feedback to new Ebay sellers, I usuallycompare it to having one note posted on the door of a brick-and-mortar business for every transaction. At almost any business--no matter how bad the service--you would have a lot of positive transactions; and thus a lot of positive notes.
6 Reasons Why an eBay Business is the Easiest and Safest Home Business to Start
Calling internet auctions an "Entrepreneur's Dream" isn't poetic license or part of the get-rich-quick rhetoric. Net auctions are the simplest, easiest way on this planet for the little guy to make money.
Make BIG MONEY on eBay - Your Unlimited Cash Cow
Let me be brutally honest; until recently, I had never bought anything on eBay, I'd never sold anything on eBay, and, dang-nab-it, I disdained auctions. (Bidding wars just weren't my bag.
5 Secrets To Make A Killing on EBay
Secret #1: Find a 'real' wholesale and drop ship companyDo you know what one of the biggest problem is to be successful on eBay? 'What should I sell"? I can tell you, I get many emails per day from eBay sellers, asking me what they can sell. Let me explain this more in detail.