Successful eBay business is not built on wild
guesses and approximations; successful business is built on facts, solid numbers and proven
strategies. Unfortunately a lot of people that are trying to build eBay business forget
about this or never learn in the first place and loose time and money as a result.
In this video you will learn: • How to build your eBay business on solid
facts and proven strategies that is guaranteed to make you money
• How to find emerging hot products to sell on eBay
• Discover what to sell and how to sell on eBay to boost your profits 25%-50%
• How to sell more products more often • How to piggyback off your competitors
to make more money from every auction Essentially eBay is nothing but a giant search
engine where people use keywords to search for stuff to buy and there are a lot of factors
that influence how much money you’re going to make from an auction.
In order to have profitable eBay business you need:
Pick right product that will sell and will make you profit – if you choose a product
with tiny profit margin that few people want to buy, how do you expect to make money selling
it on a regular basis? Pick a product that you can get at wholesale
price – yes, you might think that iPad is a HOT product to sell on eBay but you can’t
get it at wholesale price unless you can afford to spend several hundred thousand dollars
on inventory, so iPad is NOT HOT product for your business.
Great sales copy and description – what features and benefits are important and will
trigger people to bid and buy from you, should you offer free shipping, alternative payment
options, money back guarantee? Right day and time to start and end auction,
when maximum amount of buyers spend the most Right category to get maximum amount of traffic/visitors
Most profitable price to start so you cut down your eBay fees, but not the profit
Right keywords and phrases buyers use to search, because if they can’t find your listings,
they can’t bid on them How many serious players are there in your
market and how big is your market, are you competing with hundreds of sellers with established
customer base or is it just few occasional ones and you can easily be the TOP seller
in the category? What listing features are worth paying to
get more attention, and what features is waste of money?
How much money can you make selling a product? At the end of the day everything that matters
is how much money you can put in your pocket so you can buy yourself or the loved ones
nice and shiny things. These are the questions you need to answer
if you want make serious money on eBay and you can’t answer them without eBay research.
There are several tools for eBay market research. I use Terapeak because it is simple and the
most powerful one. Here is how to use Terapeak for eBay research to make more money.
A lot of times you simply need new ideas of what products to sell and don’t know what
is going to sell well and exact makes and models that will make you most of the money.
But if you have general idea of what you want to sell, Terapeak makes it easy to find profitable
products. There are several ways to find good products to sell using Terapeak.
Way back before I started doing eBay research I bought bunch of imitation jewelry on one
of the liquidation sites it was a huge box with 1800 pieces I thought that I would make
ton of money selling it; long story short I was able to sell only 5 pieces because 95%
of my auctions closed without a sale so I end up giving out all the necklaces, earrings
and bracelets to my girlfriends. Here is how to find emerging hot products
to sell on eBay without getting in the trap of buying products that you can’t sell.
Let’s say, you have found wholesaler or drop shipper with good prices on “outdoor
cooking equipment” and you want to find good product within that category to sell.
Terapeak has category heatmap where they rank eBay categories by profitability, in other
words what categories have the highest sales. Right now we’re in “Yard, Garden & Outdoor
Living” category and you can see that “Gas Grills” has had high volume of sales for
the last 30 days, which makes sense – it is the beginning of the summer, a lot of people
are camping and cooking outdoor, they are buying grills and accessories, which translates
into opportunity to make money by selling them.
Now we need to identify profitable items within “Gas Grills” category, it can be easily
done by researching “Top Titles”. Top titles section shows products that has been
successfully selling within selected category, I have sorted top titles by “Total sales”,
when you’re trying to choose profitable products to sell, you should look for products
that have a lot of sales, decent number of listings and high sell-through.
From the “Top Titles” sections you can see exact brands and models that are selling
well within the marketplace and adjust your product sourcing strategy, so you don’t
waste your time and money trying to sell something that people are not buying.
It is much easier and lucrative to follow lead of success then to invent failure. Terapeak
makes it easy to research and reverse-engineer sales strategy of the most successful sellers
in any niche or category. By researching top sellers in your category you could easily
discover most profitable products to sell or find ideas for new products to sell that
you haven’t thought of before. Now, instead of blindly buying a truckload of random stuff,
you know exactly which products are going to bring you a profit.
Right now we’re looking at “Top Sellers” for “Gas Grills” category. Researching
particular seller you have 3 options: * Research items for this seller from this
category – this option is good for observing their overall sales strategy in particular
category * Research all items for this seller – good
for discovering new products to sell * Research this seller’s top titles – grab
their most successful titles (they have done all the hard work of testing the marketplace
for you), now you can pick the most profitable ones
By researching top sellers in your category you can also measure potential competition
and estimate your chances to compete. It might be easy to take the top seller spot in the
category if all you have to compete with is a couple casual sellers and it might be not
so easy if you have to deal with hordes of competitors selling hundreds of thousands
worth of inventory. When deciding between categories you should
be considering category profit potential vs. number of serious sellers, in other words,
how much money people are spending in this category vs. how many serious sellers are
selling in this category. Let’s say you have found that “Gas Grills” and “Coolers
& Ice Chests” are both hot within “Outdoor Cooking & Eating” category, so should you
be selling grills or coolers? We can’t answer this question straight away
unless we know how much money people are spending in those categories and how many serious sellers
there are. We can research serious players by looking at “Top Sellers” list sorted
by total sales – look for those that have a lot of sales and high number of listings
(20 or more a month). There are about 20 serious sellers in “Gas
Grills” category and about 15 in “Coolers & Ice Chests” category. Now it’s time
to see how much money people are spending in those categories; we can do this by looking
at “Total Sales” trend. Category trends allow you to see sales fluctuations in different
times of the year (seasonality of your items). For both coolers and grills peak season is
summer, so during the summer average weekly sales for coolers are around 12K and for grills
around 120K. Both categories have roughly the same competition but people are spending
10 times more on grills then they do on coolers, so your business would have much more earning
potential selling grills. A lot of merchandise has seasonal trends,
which means their sales fluctuate throughout the year like wedding favors, St. Valentines
cards, barbeque grills and so on. You can buy them dirt cheap off-season and sell at
much higher price during the season. Terapeak trends give insights on when is the best time
to buy seasonal items off-season so you can profit selling them during the season. In
our example, week before New Year is a good time to buy grills because average sales price
drops down to $161 and then during the season average sales price climbs back to $320 range.
Which give you enough room to have healthy profit.
If you don’t have particular category for selling in mind and you don’t feel like
researching different brands and models, you can get ideas for profitable products to sell
from Terapeak “Hot Research” module. “Hot Categories” is a good way to identify
categories which have recently experienced a significant rise in demand, which means
that people are actively spending money there right now. By browsing through “Hot Categories”
list it is easy to discover highly profitable niches with very little competition. As you
can see “Backpack Leaf Blowers” is listed as very hot category with high success rate
which means that majority of listings in this category are successful. If we go look at
the sales trend for this category, we can see that weekly sales are about 40K during
the autumn season and by researching top sellers we can see that there are only 7 sellers that
are selling on a regular basis right now. This translates into money making opportunity
because our research shows us that demand is high while supply is low.
“Hot products” tab lists groups of similar listings which have been selling at a high
success rate recently; it is another way to discover hot selling products but when looking
at hot products list I would suggest narrow you search down to a category, because if
you search across all categories, products that are listed at the top are hard to find
at wholesale price as you can see items listed at the top are mostly consumer electronics
and computers. But, if you drill down to less competitive category, it is much easier to
find dropshiper or wholesaler that will be glad to supply you with products to sell.
“Hot Titles” tab lists the products which have been sold most successfully on the eBay
marketplace within selected period. Again, it makes sense to drill down to a less competitive
category because it is easier to find wholesale suppliers for those products.
Now that you know how to choose profitable products here is how to make more money selling
them. To maximize revenue from an auction you need: right category and keywords, best
time to start and end your auction, compelling sales copy and description, most beneficial
price to start your auction. To answer all these questions you can use
standard “Search” function within Terapeak and use information widgets to see how to
list your auction to pocket maximum amount possible. For any given search Terapeak gives
you information how to list your auctions to achieve your goals. You can choose to maximize
your average selling price and profits on every auction or you can choose to maximize
your sell-through rate and number of items you sell or you can choose a hybrid strategy
and try to maximize both: average selling price and sell-through. Terapeak makes it
easy to switch between those goals just click a button and it will show you what settings
you need to achieve your goal. For example if I would sell “Burton snowboards”
to maximize my average selling price I would need to list my auction for 10 days with the
starting price of $39.51 and end my auction on Saturday between 1-2am.
If my goal was to maximize sell-through I would need to list my auction for 11 days
with starting price of $39.51 and end my auction on Tuesday between 6-7pm and use of keyword
2011 would help me sell more items. There is another way to research options that
will help you make more money on every auction – it is “Top Sellers” report. After you
pick a product or category in which you want to sell, research top sellers, if they’re
selling more than anybody else in this category, they must be doing something right so why
not adopt best parts from their selling strategy – research what they are selling, what keywords
and features they use and so on… Look for sellers with high volume of sales and high
sell-through, research several top sellers, pick and combine best parts from their selling
strategy. If your auction and product description is
poor you will get poor sales, to prevent this from happening use links to closed listings
at the bottom of every Terapeak search – pick 5-10 auctions with highest sale price – obvious
winners, then research their sales copy, take the best, improve it, and you got the best
sales copy than anybody. It works every time.
So, by now you should have an idea of a product that you want to sell. Although you are confident
you can sell it, do you know how much money you can make? Terapeak can help us answer
this question – check Average End Price – this is how much money average seller can expect
to make selling the product. But we won’t sell it at the average: using market research
and proper selling strategy we can significantly boost our selling price. Usually my selling
price was 25% higher (on average) than regular end price, because I was able to leverage
great description, right timing, keywords and features in my auctions.
Here is how to find out how much money you can make selling a product:
Profit per item=End Price – Cost of a Product.
Don’t forget to include in Cost of a Product: wholesale price of a product + shipping +
storage + listing and closing fees. So, if your average End price is $100 and it cost
you $78 to get and list the product, your average profit per item would be $22.
To decide whatever or not you can build a business selling this product you need to
calculate profit potential over time: Profit Over Time=Profit per item * # of
listings * sell-through So, if you’re listing 100 items per month,
your profit per item is $22 and sell-through rate is 70% you can expect to make $1540 per
The key here is to sit down and do the math before you’re going to buy a large inventory
of “hot” products that either: * You can’t sell
* You can’t make a profit on. That’s why market research is crucial “MUST”
for serious business, and performing this without proper market research software is
impossible. So, if you’re selling or planning to sell more than $500 a month worth of products
you need eBay market research software, otherwise you’re leaving a lot of money on the table
and possibly wasting your time trying to have eBay business.
For full textual review of Terapeak and more tips and strategies about eBay research click
the link below.