The best eBay trading strategyBusiness
The key to success on eBay
The key to success in any business is planning and selling on eBay. Now you may have heard other eBay experts tell people to start selling and plan later. This is fine for those just starting out and exploring the idea of selling on eBay. However, if you are serious and really want to start earning some income from your eBay business, then you will need a rock solid plan.
Analysis of your eBay business goals
Each person is different and therefore each business will also be inherently different. You want a business that meets your personal goals. Success for you may mean being able to quit your job from nine to five. For others, it may simply mean earning enough to spend extra money each month. To get a clear idea of your goals, ask yourself these questions:
- Is this business something I want to do full or part time?
- Is it going to be a one man operation or will I have a partner / employee?
- How much money would I like to take home with me each month?
- How much am I willing to spend on monthly overhead?
Only after answering these basic questions will you have an idea of how to proceed with the eBay strategy for your business.
Formulate a winning strategy
The next step is to find out how you plan to achieve your goals. The bigger you want your business to be, the more complicated planning and overhead will be. Let’s give you a brief example, let’s say you want to make $ 1,000 a month, which is quite doable. However, there are many different ways to do it. You could sell 1,000 items for a dollar profit each, or you could sell 5 items each for a profit of $ 200. If you want to work part time, the best solution would be the last one. That brings us to our steps for a successful eBay business plan:
- Start with eBay market research. The first step then is to explore the eBay Marketplace and look for items that are selling well. There are some tools available for free on eBay that can help. Try using the completed listings tool to see which items seem popular. There are also third-party research tools available, such as Terapeak or Hammertap.
- Search for article sources. Once you’ve created a list of potential items you’d like to sell, it’s time to try to see if you can find them at a good price. Depending on your business goals, some items may be out of your reach as they require large amounts of capital. An example would be high-end electronics that can sell well, but many wholesalers have a minimum purchase order that would make things difficult for small sellers. Some sources include buying in bulk, buying closeouts in bulk, thrift stores, real estate sales, / Craigslist, eBay wholesale listings, and many more.
- Calculation of your profit margins. Once you have an article in mind and a source, it’s time to calculate your profit margin. Take the expected sales price plus shipping and minus any eBay fees that apply, this includes final value fees, listing fees, and PayPal fees. From this figure, you can calculate how many of the items you would need to sell to reach your goal. You should also take into account how many of the items are available for purchase. Used collectibles have a limited inherited supply.
As you can see, it can be difficult to find that perfect eBay niche that works for you and helps you achieve your goals. However, the key is to thoroughly research your eBay business plan. When you find it, making money on eBay will be as simple as buying inventory, listing it, and shipping it to your customers.