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Make Money on eBay by Finding a Product Niche

Aug 12, 2008
One of the major problems that often stops a person from ever starting a business to make money on eBay is an inability to find a steady supply of inventory that can be resold for a profit on eBay.

The key to making money on eBay is to find a product niche, then find inventory to fill that niche. Ideally you would have a hot selling product that nobody else is selling, and you would be obtaining that product from a source that nobody else has access to.

Unless you are the actual manufacturer of a product, you can pretty much throw that perfect scenario out the window.

The more likely circumstance is that you will find a product niche, and for a time you will be one of only a few other sellers selling that product on eBay. With time, other sellers will catch on to your good fortune and the market will become saturated, driving down margins and making that niche unprofitable.

At that point you move on, finding another niche product and starting the cycle over again.

This isn't to say it can't be done. For a couple of years I sold a highly popular name brand of cosmetics on eBay, and was virtually the only seller able to provide it consistently. I quickly became the favorite seller of many stay-at-home moms, as well as other eBay sellers who used me as a product source.

However, I would say that I got lucky in that particular situation. Eventually my supplier went under, and I had to move on. Your best shot at being an exclusive supplier of products on eBay is probably going to be small, local suppliers.

If you can find a unique product from a local supplier, then the only other people who have access to that supplier are going to be people who live in that same area. This gives you a much better chance of being the exclusive seller of that particular product on eBay.

Remember, the main idea to making money on eBay is the same as any other retail business: buy low and sell high. That concept never changes for you as a retailer and eBay seller. Finding out what to buy and where to "buy low" is going to require that you do your homework, something with which there are no short cuts to victory.

When you think you've found something, make as small of a commitment as possible until you are able to find out through experience just how well your discovery will sell on eBay. Also, be sure to research the item on eBay before making a purchase to ensure it hasn't already saturated the market, and that you can still make money from it.

Finally, avoid any suppliers that don't provide you with a physical address and telephone number.

Preferably, you should also have the name and phone number of an actual person that will act as your contact with that company. With larger suppliers, you typically won't get a dedicated contact until you've proven yourself by doing large volumes of business month after month. But with smaller suppliers, you should try to always get a name and number of someone specific.

In short, to make money on eBay find a product niche through a local supplier that the rest of the nation doesn't know about or have access to.
About the Author
PowerSellerPros (http://www.powersellerpros.com) offers free advice about how to make money on eBay. Art Gib is a freelance writer.
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