Finding a Niche Market on eBay

There are a number of ways to make money on the Internet. One of those ways is using eBay to showcase your wares. But, just because you offer products doesn’t mean the customers will be flocking to your auctions. Learn how to find and establish a niche market. Bring the customers to you in order to reach your success potential with eBay.

In order to bring buyers your way you must first know who your potential buyer is. You’ll need to narrow down your customer type as much as possible into what is known as a target buyer.

What is a niche market?

A niche is a narrowly defined segment of a broader topic. For instance, I sell books. However, I don’t sell just any sort of book but I specialize in children’s out of print collectible books. This is a well defined and narrow market or what is better known as a niche.

A niche market is a smaller part of a larger market. As such, it is more specialized and therefore, more targeted. Some seller’s shy away from specialized markets feeling as if they have better opportunities in general markets — shooting fish in a barrel.

Think of it this way. If 500 people all are interested in dress patterns, perhaps only 50 are interested in vintage dress patterns. That being said, those 50 people will be delighted to find your narrow market and spend more money (typically at the website they are at) and come back for more over time to satisfy their hobby fix. You not only have less competition but once you have a customer in a niche market they usually are going to buy from you repeatedly. Simply stated, there is more demand and less product available to meet the demand. It’s simple economics.

Finding Your Niche Market

This will take a bit of time but once you find your market for your first product, the process will be simpler the next time around. People buy for a number of reasons. In this unstable economy, those reasons become even more important. Ask yourself what reason your product satisfies. Here are a few examples of things your product will want to do in order to keep your potential buyers attention and ultimately get them to buy from you.

• Does your product satisfy a need that must be met or have an emotional connection?
• Does it provide entertainment or can’t be readily found online?
• Does it solve a problem efficiently, quickly or do both?

If your product or for that matter, your service, does one or more of the things above, it will stand a chance amongst bidders on eBay. Now that you know you can compete, find out how many of those people who fall in your target niche are out there.

Look at similar products being sold right now on eBay. How are the auctions going? How much are the winning bids? Are these people repeat buyers of other products in that same category? What time of year do the products sell the best? How many auctions close without bids? Why?

All of this information can be used to see if a niche has been established on eBay. In that case, the number of bidders can help you estimate how large the niche is and if there is room for competition. If the particular niche has been exhausted, you might want to reconsider selling that specific product or possibly go about it in a different way.

Finding an untapped niche on eBay is rare, but it can be done. More than likely you can find a niche that has not been hit to its potential and establish yourself as a reputable supplier of a certain line of products and/or services. Researching a niche ahead of time saves wasted energy trying to sell something that won’t sell. On the flip side, if you take the time to do the research and find you’ve got a hot product on your hands, with some researching and testing you could very well find yourself making a nice chunk of change on eBay.

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