How competitive eBay really is ??

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Thank you for taking the time to read my guide of which you may be wondering whats it all about ! Well , i feel it necessary to write a guide which I hope may assist future sellers on eBay in Planning their Business before rushing into it. A Few tips ....

One - Before you even start selling any product , you must remember that someone is almost likely selling the same tthing and will also most likely reduce their price !

This is known as "Margin Killers". Sellers of the same goods , which keep on reducing the price, thus reducing their profit margin in order to ensure that their item sells and the others does not. This is nothing new, it has been happening all over the place, more memerably with the supermarket chains and the price of a tin of beans! The reason that this happens is so that business can retain and gather new customers by extremly competitive pricing , even though they may be making a loss on those product lines , but in order to secure future business from those customers. And of course , to try and put their competitors out of business!

Two - A Free Market system will ALWAYS DRIVE PRICES DOWN !!!!

Understanding this principle about the market system and subsequently ebay goes a long way to maximizing your profit from your auctions. Obviously if you are going to compete in a market of undercutters and small margins, you need to have your house in order, and by this i mean your ONLINE PRESENCE ON eBAY needs to be more than GOOD !

Start by analyzing the sellers auction including his sales history and what types of products they are selling. Is there a catch to what they are selling so cheap? It could be stock purchased from an wholesale auction , in which case they will be gone in a few weeks.

Some sites sell products for very low simply to obtain a qualified email address which they know can result in many more sales in the future.

Others are able to buy the product for a lot less than you can either through contacts or access to liquidation or wholesale auctions.

And then there is the type of ebay seller that simply sells for next to nothing because their perspective on profit is a lot different than yours. If they make a $100 a month from ebay they are happy, where you might look at that and say it’s not worth the effort for that type of money.


I understand that this may cause some upset for eBay , but surely instead of all us sellers continuosly reducing our profit margins and putting all our eggs in volume sales, we should act respectivly , like business sellers. Has eBay become already that competitve in the short space of 10 years or so? If that is right , compared to the UK economy, eBay is developing around 40 times as fast and will soon be overtaking the UK economy , if it has not done so already!

So How Can You Counter this Type of Low Cost Strategy from new entrants to eBay ?

1: Before you get into selling a tight margin product, give it careful consideration whether the earning potential is worth your efforts. If you are going to have to spend a ton of time shipping and dealing with customers, will you in the end only make a few dollars an hour for your efforts ?

2: If you are going to compete, don’t bring a knife to a gun fight. Compete hard and demand your share of the marketplace. Constantly strive to offer more than your competitors do and relentlessly peck away at their already slim profit margin. Offer added bonus items to the auction for the winning buyer. This only works though if your primary competition has a higher earning expectation.

3: Optimize your site. Just because one guy is selling the same product lower doesn’t mean the buyer will even find their site. Be sure to use keywords in the title and study their meta tags and keyword usage. A product like the se tool box is great for this.

4: Design a great sales auction site. Use html and graphics to add more value to your auction. Remember, your auction is your packaging.

Slim margins mean you will have to be as tenacious as a junk yard dog. If you love a good scrap, then go for it, otherwise move on to a more profitable product line.



It takes time to get customers and even longer to get regular customers, but it takes seconds to lose them!

Please rate this guide. Many thanks, Shaun1521. KBC Stores.

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