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Starting an eBay Business How to Do Your eBay Market Research

 


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One of the biggest reasons that many that have a go at starting an eBay business and aim to make money through dropshipping fail to do so because they fail to put in any effort in regards to research.

Instead of seeing dropshipping as a proper business opportunity they instead see it as way to make money fast. Because of this they sell anything and everything which ultimately leads to them doing one of several things.

1. Selling a product that doesn't sell in decent numbers or have a buying market.

2. Selling items that get buried underneath the volume of competition from other sellers.

3. Selling items that leave very little, if any, profit margin.

This is obviously the wrong way to do the things so you will be glad to read that there is a right way.

The right way is to find one particular market and sell items only related to that market and nothing else. You can find out what is popular using something such as eBay pulse, which list eBay's top selling products of the last 14 days, or checking Amazons best seller's.

These will find you popular products that are definitely selling but they may also have a high level of competition and small profit margins. Because of this I prefer to use a different method. Here is what I would do.

1. First go to eBay and next to the search bar you will find an advanced search option. Click it. Now where it says “search including" tick the box next to completed listings. Click on search.

2. Look at the categories listed in eBay. For this example I will pick Baby. Click search.

3. On the left you will now see an area labeled refine your search. This will basically give you the different items you can sell in this market. Let's go for Walkers.

4. Again you will see a list on the left that will allow you to dig even further if you like. For this example I will dig one level deeper and so under brands I will check Chicco.

5. Now look at the listings. As you have set up to show completed listings you will be able to go through the previous listings and see how well the item has sold and for what price, making notes of the prices. If there are a high number of items unsold then this probably isn't the best market.

At the time I did my research there had been 187 Chicco branded walkers put up for auction. Of these 47 went unsold of which 13 where pick up only and so can be discounted. This means that there was an 80.46% sell through rate on this product (140/174 x 100 ). Anything higher than 70 % is definitely worth looking into and higher than 50% is worth considering. Therefore my example would certainly be worth looking at a little deeper. Just in case you are wondering the average sell through rate is around 35%.

6. Start over again and research another area. Do this until you have a list of at least 5 items that will be worth checking out once you have a dropshipper.

This may sound difficult but trust me when I say that after doing it a few times it becomes very easy and takes little time. If however this still seems a little much for you then you may want to use a research tool instead.

Do not overlook the importance of research when you are starting an eBay business as provided you do it then there will be no reason at all that you shouldn't succeed.

For a FREE guide on How To Dropship Online which includes information on how to avoid scams, setting up a store and most importantly how to find profitable products please visit How To Dropship Online NOW!!!

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