When It Comes To eBay, Don?t Follow The Herd

Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in. The big question is: what is the hot product to sell on eBay to make money fast? -- Bob D.

A: While it's true that selling products on eBay can be a quick, low cost way to launch an online business, following the herd by selling the "hot product" of the moment, is not a great idea. To the contrary, chances are you will be stomped in the ground by the herd and left lying in the dust with your unsold inventory in hand.

We talked about starting a profitable eBay business in a previous column and the advice I dispensed then still applies today.

The most successful eBay sellers are those who understand that success on eBay relies on many of the same factors as success in a brick and mortar business.

· Smart sellers research the marketplace and the competition to determine the salability and profitability of the product.

· Smart sellers test the market with one or two before committing to a product line and tying up their cash reserves in inventory that may never sell.

· Smart sellers adjust their product offerings until they find a product or product line that sells consistently.

The last point is perhaps the most important. Long term eBay success does not come from "one off" sales. The key to real eBay success is to find a product that sells well and sell that product over and over and over again.

I asked Timothy Mina, author of the new book, The Online Auction Expert's Bible To Selling on eBay, his thoughts on launching a successful eBay business.

Why is eBay so attractive to entrepreneurs?

"With an eBay business, you set your own hours and set your own goals," Mina said. "You can work as much or as little as you want and whenever you want. Many sellers supplement their income by selling on eBay and many others have turned it into a full time business."

Mina cites the following reasons for eBay's growing popularity among entrepreneurs who want to start an online business:

· You can start up quickly and don't need special skills.

· There is very little risk and investment required to get started.

· The marketplace is huge. There are millions of potential customers waiting to buy what you're selling, 24 hours a day, with the click of a button.

· No stress, no boss. Yes, there is work involved, but the work can be done at your own pace. You are your own boss and you set your own schedule.

· Most importantly, you can follow your passion and do something you love. If you sell something you enjoy selling, online auctions aren't just profitable, they're fun and exciting, too.

Why It's Critical To Find Your Niche?

Mina recommends creating your eBay business with niche items. According to Mina, the benefits of targeting a specific niche market include:

· If you are going to rely on eBay as your primary source of income, it is essential that you find your niche. If the goal of your eBay business is to earn enough money in your spare time to make your car payment every month, it is less important, but still highly recommended.

· If you find a profitable niche, you will become a certified guru of the items you sell you will ideally be the only one on eBay offering the products.

· Your expertise will make it ten times as easy to spot bargains when you're shopping for products to resell. Bargains might be all around you, but if you don't know anything about what you're selling, you won't know how to spot bargains that are right in front of you.

· You will find different ways to add personal value to your products. These low cost add-ons or unique twists to your products will drastically increase your sales and profits by making your items unique and desirable.

· You will have little or no competition from other sellers, so you can corner your niche market.

· By dealing with the same type of customer over a long period of time you will get to intimately understand the mindset of your target customer and what your customer wants. This will help you sell your products better and allow you to market your products in ways others haven't thought of.

· You will be knowledgeable and enthusiastic about what you sell, and you will be attentive to your customer's desires. This results in satisfied customers, name recognition, and a lot of repeat business.

· You're going to find something you're passionate about and specialize in it. If you love what you're doing, you have a much greater chance of sticking to it and loving it. So it won't even feel like work ? it'll be like you're getting paid to play.

How do you find your niche?

So how do you find your niche? Mina recommends doing an inventory of your hobbies and interests to help you identify a niche you would enjoy working in.

Ask yourself:

· What are you passionate about?

· What do you collect?

· What do you like to read about?

· What do you do in your spare time?

· So you have a favorite pastime?

· What was your major in college?

· What jobs have you had?

· Are there any other fields in which you have a great amount of knowledge?

· What clubs do you belong to?

Mina also recommends that you spend time on eBay studying the category listings. This may give you additional ideas for hobbies you can turn into an eBay business. Once you have defined your hobbies or interests, brainstorm how you can turn them into a business.

· How can you turn your expertise into a product?

· How can you add value to current products related to your interest?

· What product can you sell that may be one of a kind and have little or no competition?

· Can you think of novel ideas that people who share your passion would love?

· Is there anything related to your hobby that you can create yourself? An ebook or a how to, perhaps?

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest books include "Small Business Success Secrets" and "The 30 Day Blueprint For Success!" Related Links: http://www.smallbusinessqa.com http://www.dropshipwholesale.net

Best of the rest: Art auctions
Detroit Free Press, United States - 8 hours ago
The auction house is holding multiple auctions Friday through Sunday featuring fine furniture, jewelry (including a gold, ruby, sapphire and diamond ...

Now Magazine Online
Miley Cyrus auctions off Stuff on eBay and her Interviews and ...
Best Syndication, CA - 10 hours ago
The money raised from her eBay auctions will benefit a foundation that was named after her grandfather, Pappy Cyrus Family Foundation, and proceeds go to ...
Miley Cyrus auctions off a night on the town My Tennessean.com
Cyrus Auctions Off Red Carpet Evening TheCelebrityCafe.com
Miley Cyrus Auctions Red Carpet Date People Magazine
TheImproper.com - OK! Magazineall 28 news articles

Condos turn to auctions to move units quickly
Daily News - Galveston County, TX - 8 hours ago
Thrash joined a growing number of developers who in a slow real estate market are using auctions to move properties. He may not have sold the 193 available ...

Auctions International Inc. Announces Virtual Dealership Affiliates
FOXBusiness - 20 hours ago
Douglas G. Mann, President and CEO of Auctions International, said, "These Virtual Dealerships will provide added exposure and bids for our current licensed ...

Wall Street Journal Blogs
NY AG Cuomo To Make Announcement In Auction-Rate Probe Thursday
CNNMoney.com - 2 hours ago
The New York attorney general's office has subpoenaed 30 entities and 100 individuals, seeking information about the sales of auction-rate securities, ...
Texas joins states considering sanctions against UBS Bizjournals.com
Cuomo Readies UBS Civil Suit Wall Street Journal
all 34 news articles

Treasury prices extend losses in flight to stocks
San Jose Mercury News,  USA - 16 hours ago
The auctions increase the amount of debt, and the increase in supply tends to send prices lower. In addition, investors moved out of the relative safety of ...
Treasurys slightly lower after BofA results The Associated Press
Prices fall slightly for Treasury bills Chicago Daily Herald
all 114 news articles

BusinessWeek
Biggest Online Charity Auctions
BusinessWeek - Jul 23, 2008
Forget the silent auction or the $500-a-plate dinner. Do-gooders looking to net serious cash for their beloved charities are increasingly turning to online ...

BusinessWeek
Online Auctions Raise Big Bucks for Charity
BusinessWeek - Jul 22, 2008
The Web has wrought a sea change in the way nonprofits raise funds through auctions. Charities have long hawked donated items through live auctions, ...

China Electronics auctions its cable TV networks for 3rd time
China Daily, China - Jul 23, 2008
This is the third time that China Electronics Corporation has auctioned its shares in China Cable Television Network Co Ltd this year. ...

Realestate TV
Investors flocking to property auctions
Realestate TV, UK - 20 hours ago
There has been a 300 per cent surge in the number of homes being offered for sale at auction in England between 2005 and 2008, according to new figures from ...

Wind Chimes and more...

Windchimes for great gifts!

Online Auction Fraud