Understanding Ebay...

What is the mental picture you get when you hear the word 'Ebay'? A huge rummage sale in cyberspace? An e-swap meet? An online garage sale where everyone can set up a table? That was true 10 years ago, but in recent years, Ebay has seriously been trying to 're-brand' itself as a serious retail venue and to lose their reputation as a huge online garage sale.

Open up www.ebay.com right now and look at what kind of products they are featuring on the front page. In general, they are marketing themselves as a place to buy NEW items, BRAND NAME items, and MASS MARKETED items. I will tell you that there IS definitely a place for unique items, handmade crafts and artsy things, as well as used items, but if you look around a little bit, you will find that the majority of ebay sellers are selling new, brand name, mass-marketed stuff.

There is a myth that Ebay is a great place for collectibles, antiques and rare items. It's true that you can find many wonderful rare finds, but the majority of Ebay shoppers are looking for a good price on everyday things (socks, cake pans, screwdriver sets) and that these buyers are easier to capture than the buyer who is searching for a handpainted spice-rack with gold-leaf applique. There are other sites (like Etsy) that cater to artsy one-of-a-kind items or antiques (Ruby Lane) and draw buyers who are interested in that kind of thing. Ebay is trying to re-market themselves and wish that all of its sellers were offering Ipods and Wiis.

First of all, realize that Ebay is a big crowded place to sell. Think of a random item you might want to sell on ebay and type a few keywords into Ebay's search bar (ex. Ladies Gap jeans) and you will see how many sellers are offering that particular item and what their prices are. Chances are, if you have something to sell, then someone (or many people) are already selling it. You have to give customers a reason to buy from you. (hint: cheaper prices!!!)

If you click on “advanced search” beside the search bar, you will get the option to search completed listings (there's a “search completed listings” box to check) which looks at the last 2 weeks and tells you how many people were trying to sell a particular item and what it sold for. By far, this is the best predictor of your success. You are wasting your time and money if you're trying to sell something that nobody's buying, or selling something for much higher than the going prices. I'll say it again, people want CHEAP. They want something cheaper than they can find it at their own mall. They want the cheapest price off ebay as well. That's an obvious one, right? If 10 people sell the exact same item, the guy with the lowest price gets customers.