It’s tempting to start out with an approach along the lines of, “you’ll find the two or three things that are sold most often on eBay; since that’s what people want the most, that’s what I’ll sell.” There are several problems withthis “copycat” reasoning:
● Stiff competition If something is already being sold heavily on
eBay, that indicates that some sellers are already heavily involved
in offering that type of merchandise online. You’re likely to encounter
a wall of competition.
● Lower feedback Customers who are used to making purchases
from sellers who have higher feedback ratings (and by extension,
more established reputations) than you do will be unlikely to
switch to a less-established seller like you unless your prices are
substantially lower.
● Potentially low margins If there is already heavy competition for something being sold on eBay, chances are the profit margins are already very small: The existing competitors are driving each other’s prices down. In order to have any hope of attracting customers, you
would have to cut your profit margin to a razor-thin level. (And the manufacturers or wholesalers that provide you with inventory to sell might not approve of this; they may accuse you of undervaluing their products and hurting other authorized sellers.)
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