eBay has made many millionaires, as it’s the world’s biggest marketplace. But, what you don’t hear about so much, is all the people who struggle to make a profit from eBay because 100 other people are selling the exact same things… for more competitive prices.
This is certainly not a new situation. Large retailers often run at a loss on some things in order to attract more customers. But, for new eBay sellers, this is a deadly scenario.
Here’s the thing… eBay is simply too competitive in some categories. Jewelry, designer clothes, electronics, and computer games are all dangerous territory for the new eBay seller. You won’t stand a chance against established sellers who’ve already got a strong following and highly-competitive prices.
So what should you do then? If your item falls into these or any other highly-competitive category, shift your focus to less-competitive markets such as selling through your local classified newspaper.
Obviously, you will not be reaching audiences of the size that eBay provides, but you won’t have to. Buyers who use alternative mediums (rather than eBay) to purchase goods are 9 out of 10 times more likely to pay significantly more for things. Not only will your margins be much higher, you’ll also have far less competition.
It’s also a good idea to try using eBay international sites like ebay.com.au and ebay.co.uk, as well as other auction sites with less competition like trademe.co.nz and ubid.com. These sites allow you consistently higher margins compared to eBay US, and the number of buyers is still really high.
One point to note is… eBay US’s huge amount of competition makes it a fantastic place to buy goods to sell anywhere! eBay US may not be the best place sell, but is certainly a great place to buy. It’s not uncommon to find the best prices on eBay for about anything!
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