01.06.06

Supply and Demand

Posted in eBay at 1:06 pm by admin

Always do your research before deciding to sell something online. eBay is nothing more than a huge marketplace, no different that what has been around for thousands of years, allowing people to buy and sell from each other in an open and free environment.

Often times however, we forget the laws of supply and demand and must be reminded. As a quick note: before commiting to a new product or service you intend to sell on eBay, do a through search for it first on eBay, then secondly on sites such as bizrate.com and see what others are selling it for, and how many other merchants are in the market (how much competition you will have).

Can you beat their prices? If not, forget the idea and move on. If you can, by how much? Remember, others out there may have larger margins than you and will be able to fight you in a price war.

The last thing you want before you go and invest in 20 new cell phones from Hong Kong, hoping to make a great profit on eBay, is for someone to sell the same phone five dollars less than your cost.

That would suck, and it does happen.

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