by Dan Hartshorn

Created on: February 12, 2007   Last Updated: February 20, 2007

Competition is fierce for sellers on eBay, but there are several strategies a savvy entrepreneur can employ to rise to the top. Before jumping right in, make a smart investment to do some research. Spend a couple days exploring eBay. The site is huge and can seem overwhelming, but there are some key things to examine.

First, read all of the seller FAQs. There is good information there and it's best to understand the tools that eBay offers to the seller. Next, check out the "What's Hot" page under the Seller tools. There are several resources available that will provide the inside scoop on current trends, hot products and seasonal promotions. This will help sellers focus on the right segment at the right time. Another indispensable tool on eBay is the search option "Completed listings." Search for a product then check this option and search again. The results shown will be auctions that have already closed so the actual purchase price can be examined. This will show what one can expect to get for this item.

One of the keys to success on eBay is finding a good niche. Don't attempt to be everything to everybody. Find something interesting that fills a niche that isn't currently saturated. It may not be a good idea to sell electronics since the eBay seller is not only competing with the local Wal-Mart, but also with thousands of other sellers, most with plenty of buying clout. Think in more focused areas, for example a particular type of fishing lure, specialized crafting tools or imported honey. These are just examples of course, but taking the time to find a good niche is critical.

To succeed in any type of selling, and eBay is no exception, one must sell for a profit. This can be difficult on eBay because of competition, and because buyers are used to getting incredible deals. One approach to this problem is to seek out wholesale products that will provide for a healthy profit margin. It's not easy to find good wholesale suppliers that aren't already saturating the selling market, but it can be done with some patience. Research them online and search for their products on eBay. Experiment a bit with products that don't have too much competition and provide a niche.

Many sellers don't favor the idea of a garage or spare bedroom full of stock. This can be avoided with the use of a drop-shipper. Some wholesalers provide this service and it is ideal for the eBay seller. A drop-shipper will sell the product to the eBay seller, but ship it directly to the eBay buyer. The seller thereby avoids the risk of having a maintain stock and the hassle of dealing with shipping. This service will of course cut into profits a bit, but it can be well worth it.

Selling successfully on eBay is not as easy as it once was. There is market saturation and competition to contend with, but with some hard work and perseverance, it is still a very viable way to earn a living online.

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