“How To Do an Ebay Market Analysis” by Jason James
Market analysis is very important to determine what sells and what doesn’t. When you’re paying Ebay listing fees for featured auctions or listing fees for category featured Dutch auctions, you need to continually evaluate the profit potential, profit margin, and sales percentage of your products as relates to the length of auction, type of auction (featured, featured in category, bold face title, etc.), description & sales pitch, price, and a number of other factors.I’m not going to provide you with a complete plan for performing a market analysis because this isn’t an economic manual, but I will give you a few tips. You’ll have to do some pretty tiresome calculations by hand. In particular, you should evaluate the following points FOR EACH OF YOUR PRODUCTS:
Sales percentage (number of listings for a certain item / number of sales)
Profit margin (average profit of the item)
Profit potential (largest profit from the sale of the item)
Category sales percentage (sales percentage for a certain item listed in different categories. Which category does it sell best in?)
Featured auction profit margin vs. category featured profit margin (does your profit margin from featured auctions for a certain item exceed your profit margin for category featured auctions? If so, you should feature the item. If not, you should only category feature it)
Performing a market analysis is one of the most important ways to maximize your net revenue once you have listed enough auctions to collate plenty of raw data.
UPDATE: “Hot Item Finder” software program is an unbelievable product to conduct this eBay research. You can extract and analyze licensed eBay data and statistics to virtually ensure your auction success by seeing what has sold, for how much, how many bids it got, etc. Visit the website here: http://www.hotitemfinder.com
In my next lesson, we will talk about… “Trial & Error – It Works”
Yours in success,
Jason James
Consultant and eBay Power Seller
Founder, Auction Resource Network
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Jason James is originally from Boston, MA. and has spent time in the U.S. Marine Corps learning some of the discipline that is required for a successful home-based Internet marketing business.
Jason has built a long track record of success mastering eBay and building profitable membership websites.
His first Internet success was selling products on Internet auction site eBay, becoming a power seller then eventually putting together the website www.auctionresourcenetwork.com which detailed the exact steps a person can take to make money on eBay.
Jason’s most recent venture is putting together a series of Online videos made by some of today’s top Internet marketers to help budding entrepreneurs get trusted information to help their online businesses grow to phenomenal levels.
Jason has kindly allowed us to post one of his articles about how to be successful on E-bay each day for the next couple of months. Thanks Jason.