THE BEST EBAY BUSINESS STRATEGY
As with all things, the key to success on eBay is planning. Of course, you may encounter some so-called expert on the platform who advise that you simply begin selling and then plan afterward. For newcomers simply testing the platform, this might be okay, but for those who want to make any real money from the venture, then a strong, well-thought-out plan is very necessary.
ANALYSING YOUR GOALS FOR BUSINESS ON EBAY
People are different and so are businesses. Each business should have a plan tailored towards satisfying individual goals and requirements. What may count as success for one person, may count as something else for someone else. In order to know what exactly your goals are, you need to ask some important questions, such as:
1.) Am I entering this business on a full or part-time basis?
2.) Am I handling it alone or am I going to work with a partner or employees?
3.) Exactly how much do I hope to make monthly?
4.) Exactly how much can I invest monthly overhead?
When these questions have been answered then you can continue with your plan for your business on eBay.
CREATING A WINNING STRATEGY
After making plans, the logical next step is plan exactly how you intend to achieve the goals you have set. If you intend to have a big business, then the planning, as well as overhead, are going to be big as well. As an example, say you intend to make about $1,000 monthly. In order to do that, you could sell a thousand items and make a profit of $1 on each item or you could make $200 profits off the sale of 5 items and arrive at the same goal. The latter would be the best way to go for those who intend to work part-time.
Now, we can discuss what steps one can take to arrive at a successful business plan on eBay
Firstly, you will need to observe the eBay marketplace and identify those items with the most sales. eBay provides some tools with which you can achieve this feat. Conversely, you could also use tools from a third party, like Terapeak.
FINDING OUT THE SOURCES FOR VARIOUS ITEMS
After listing out the things you want to sell after your research, then the next step is to find out where you can get these items at a reasonable cost. Of course, based on the type of business you plan to run, you may not be able to get some items because they probably need huge capital for acquisition.
CALCULATE YOUR PROFIT MARGINS
Once you know what you want to sell, and where to get it, then you need to find out the profit margin as well. To do this, consider the selling price, add shipping costs and subtract fees that eBay may require such as listing fees, final value fees and so on. Once you have a figure, you can then go ahead to calculate how many sales you will have to make to reach the goal you have set. Do not forget to consider the number of the proposed items which can be bought.
From the above, it is fairly visible that in order to succeed on eBay, a lot of work has to be put into doing just that. A complete understanding of what you want to achieve and how you can achieve that will go a long way