A Basic Understanding Of How To Find A Niche On eBay

Written by Bryan Wong YH Wednesday, 27 April 2011 12:23

Some of you might have had experience selling items on eBay and should have realized that certain items sell well and certain items don't. It's also a surprising thing to find out that what you think sells well doesn't actually sell so well at all. The problem with most people is that they think like a seller and not like a buyer. Basically, a shift in mindset can help you understand buyer's behaviour better. But that is only the tips of the iceberg. Finding a niche market on eBay to make money from can be a difficult and long process of trial and error. You will find success stories on eBay as a seller but what you might not know is that they are more people who give up than who are successful.

Some of you might have had experience selling items on eBay and should have realized that certain items sell well and certain items don't. It's also a surprising thing to find out that what you think sells well doesn't actually sell so well at all. The problem with most people is that they think like a seller and not like a buyer. Basically, a shift in mindset can help you understand buyer's behaviour better. But that is only the tips of the iceberg. Finding a niche market on eBay to make money from can be a difficult and long process of trial and error. You will find success stories on eBay as a seller but what you might not know is that they are more people who give up than who are successful.

I'm sure the last sentence is something that really doesn't appeal to you. Honestly, who wants to make a loss if your aim is to sell and make money on eBay.

While doing market research, it is important to bear in mind about three things. It is the concept of competition, commercial value and traffic. This applies to all aspects of marketing online, even on eBay. If you are trying to sell a huge popular item which of course gets you a lot of traffic but there's just too much competition to even creep into the market. You are already suffocating with reseller fees and listing fees and yet suffer with low profit margins. If this sounds familiar to your then it is high time that you get back to the drawing board and study your market thoroughly. An example I can quote to you is selling electronics. Selling iPods and iPads is highly discouraged simply because of the risk of fakes and making a decent amount of profit from them is really slim unless you have huge stocks to sell at low prices.

This concept of competition, commercial value and traffic is an important thing to understand and it must be used at all times before you start selling. If you are having trouble figuring what to sell and if it's worth your time and money, it is time to start using some tools and services to help you get on the right track. You can use Google Keyword tool and Wordtracker which are good enough to find a popular market and analyzing your competition. Another great tool to use is Market Samurai. Market Samurai is a paid tool and it is a worthwhile investment if you are serious enough in finding a niche market. The alternative would be to be a member of a wholesaler, dropshipper or liquidator directory like Salehoo. They have a great tool call research labs to help you understand your market better.

You also can look into evergreen areas like health, weddings and pregnancy as they will never be out of place. A lot of people are going to need things related to those area. A good tip is to start thinking as a buyer. Put yourself in the position as a buyer and ask yourself what you need. List it down and narrow it down with your keyword research tools. The idea of market research might sound really boring to your but the effort you put in now will pay off if done correctly.