Research on ebay

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Research on ebay

Post by madhavi on Sun May 02, 2010 2:25 am

eBay sellers waste enormous amounts of time and money jumping into the breech with products that nobody wants. The antidote is research. Cowie tells us research must reveal what customers want to buy right now, how much they are willing to pay for it, whether it's profitable to market, the size of the market, and last but not least, whether the market for an item is rising or falling. In online selling we're advised, there is a danger in relying on "hot lists" since today's hot items may be peaking on the market and fizzling in the near term. Further into the text, Cano warns against using hot lists without an alternate plan a means to either increase profit margins or bail out of a weak-performing item by liquidating stock and breaking even.

Using the 'hot list' example of jeans, Cano emphasizes the need to research in depth. It's important to run a report on each style, model and size for overall LSR (listing success rate,) and ASP (average selling price,) for potential sale items, including profit margins verses other brands. For instance, the top-selling jean may cost too much at the wholesale level to make a viable profit relative to what the competition sells it for, but the second- or third-best selling jean might be available at a price so much better than the top seller that it will yield better profits despite a lower conversion rate.

Further, don't try to compete with the big boys: A corporation or seller with great buying power may be able to get a lower wholesale price and undercut your selling price from black to red ink.

Cano offers common sense suggestions such as bundling complementary products when profit margins on a single item are too narrow. Using the real-world example of a Nintendo game console sold on its own verses bundled with games and controllers, we're shown that the sell-through rate jumps 15 percent in the bundled package as does profit, since the profit margin on the accessories are better than the console.

Bundling complementary items into fewer listings also helps keep fees down. Conversely, we're advised to break-up and sell sets in their individual components if that nets more revenue, as it often does with TV and movie DVDs. Combined shipping on items can create a sense of buying urgency, and undercutting your competitors shipping charges never hurts. At the very least, your shipping charges should be competitive as all online buyers resent gouging on shipping or "handling" charges it can make the difference between a conversion or failure.
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madhavi

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