Friday, February 6, 2009

Deciding What to Sell in eBay

Simply speaking, everything can sell in eBay. It all depends on the balance between demand and supply, i.e. the price strategy. If you are already selling certain products in other places, e.g. your own local shop, you can just do a simple research in eBay and see if eBay is a proper platform for your business.

Let's say you're selling computer accessories products. You think you have a very good source of USB drive. Then let's do a research in eBay and see how the demand is. Take a look at this example: you type in a key word "USB drive 2gb" in eBay search and notice that most people are selling around US$30.

Now you can have a rough idea how much a 2GB USB drive can sell in eBay. Including shipping, it costs around US$30. If you find out that you can make a decent profit from your current supplier, you're very likely to make a profit in eBay.

Or course, item cost is one thing. You also need to consider the cost you have to pay back to eBay, Paypal and the shipping cost. Don't expect every item will sell when you post in eBay. So you have to estimate your sales conversion rate. Certain profits from the sold items will be allocated to cover those not sold. I will show you some calculations about all these budget preparation based on the real sales records from an eBay account in some future articles.

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