Five Things To Learn From Your eBay Competition

Five Things to Learn from Your eBay Competition (Vendor Monday)By Michelle Waldorf AuctionBytes.com February 05, 2007
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In today's AuctionBytes "Vendor Monday" column, eSeller Street Founder Michelle Waldorf reviews ways that eBay sellers can analyze their competition to improve their own businesses. Each week, AuctionBytes.com runs an article submitted by a vendor or marketplace in the online-auction industry about a topic helpful to online sellers. Story submissions are welcome by emailing the editor.

Buyers perform a side-by-side comparison of your product listings to those offered by other eBay sellers. Subtle differences in sales technique make a big difference in a buyer's decision.
Fortunately, it's easy to do your own comparison and to adjust based on your findings. Learn by example using eBay seller research and use your imagination to "try on" their business. Borrow ideas from their strengths, find opportunity in their weaknesses.

First, stay true to your goals. Picture what you want from your eBay business. Identify the workload can you manage and the amount of money you want to risk in inventory. Do you want a multi-employee enterprise, a one person show, or a part-time hobby for supplemental income?
Next, look closely at your eBay competition. Choose any eBay seller that catches your attention and use a licensed eBay research service to get a complete sales report on the seller.
Give the seller a grade (A, B, C, D or F) based on your criteria of a good eBay business. For example, if your goal is to have a 1 person, high profit, low volume business, then a liquidation business that sells 3000 items per week at $1.60 would get an F grade from you. The same liquidator may get an A grade from another person with different goals. Grade based on the following:

1. What they sell and how much Determine if the seller is a niche specialist or an odds-n-ends seller such as a liquidator or auction drop off store. Specialists usually command the best prices because they are highly experienced with their type of buyers. About 50% of PowerSellers are specialists.

Look at their total sales and the number of items sold. This indicates how much inventory they carry, the amount of cash invested and the workload required to operate this business. Divide their monthly item quantity by 22 to see how many packages they ship each weekday. Listing and shipping 60 packages a day is a full time job for 1 or more people. Will this level of sales at your profit margin be enough to meet your income goals?

2. Average end prices and success rates If the seller has better prices and success rate than their product's market average, you know this is a very skilled seller and the one to study! Buyers value this seller above other sellers.

Are their sales limited by buyer demand or by their inventory supply? If their success rate is > 65%, they are inventory limited - they could sell more if they had more inventory. If their success rate <>http://www.esellerstreet.com/sellerexample.htm, to learn the best sales strategies without trial and error. Ninety days of licensed eBay US statistics is available now, and eBay UK is soon to be released.

For more information, visit http://www.esellerstreet.com/.