Forums: Discussions for entrepreneurs and small business.

Hi guys


I picked my niche and I am wanting to do an Ebay business I have listened to some of the pod cats regarding ebay (very informative) but I am lost now.

I love video games/the internet and I love selling things so I have combined them into this idea

Do I make my business plan then find someone to sell me what I need?

I am looking to do Xbox 360 PSP and WII accessories I have selected eight total items I want to specialize in and I realize there is already people selling them but maybe I can figure out a cheaper way to offer things and sell more?

What do you guys suggest?



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Motion Creates Emotion

Do the business plan. One of the first questions to answer in that plan will be, "Where do I get my products?"

The nice thing about a business plan is that it evolves. If you get stuck on that particular question, needing to do more research, then you can work on another question. For example, "How much does it cost to sell 1 item on eBay?" And another, "How many items will I need to sell in what amount of time, in order to break even?"

Craig could you check your messages


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Motion Creates Emotion

Hi Adam,
Your question is how to compete on price with current eBay sellers. But the problem is more complex than that. Much of what came under discussion in your other topic has to do with finding a business idea. Having found one possible topic, the next big issue is competition.

You can try to compete on price, but you`re dealing with pros who`ve got connections all over the world, and who`ve been at this a long time. Another option is to compete on service, but there again, you`re dealing with people who`ve been around quite awhile.

There are two options, one of which is to choose a different niche. But the other option is to stay with this electronic game idea, and do it differently. For example, instead of selling on eBay, where you already know you`re competing with long-term sellers, you could create an entirely separate Web site of your own. With that site, you could offer more than to just buy and sell games.

In other words, you would compete on services---offering more than simply selling a game. Look at your own interests and those of your friends. Do you feel something may be missing from the way games are currently sold? Do you "wish" there was this or that additional "something" that you`re not getting when you go to eBay to buy a game?

Competing on price alone is almost always a game of diminishing returns. No matter what you sell, at whatever price, someone is probably going to be able to sell it cheaper. The solution isn`t to sell cheaper and cheaper; it`s to sell on an entirely different level....in a different competitive arena.

When someone buys a game on eBay, it`s because they`ve already spoken with people, learned about the game, gotten the retail price, and looked around at other locations. They know exactly what they want, and could care less what`s on the eBay ad, other than the seller`s honesty and the condition of the disks.

Is that what you`re wanting to develop as your business niche?

Well,

I do not want to put alot of money into a website and market it to death. The nice thing with ebay is that the traffic is all there but on the other hand its SO competitive.

Your right I could change my niche (I have no clue where to go with it)

But I am good with the internet I like electronics/games so if I was going to do something it would be with that. One nice thing about working at a franchise of Radioshack and being good friends with the owner is that he has a whole saler that is fairly cheap. I was considering buying a few small time accesories and trying to sell them to see if "price" makes the market. That way I can play around with the market. I as a gamer would pay one or two dollars more to get the better item. (thats just me though)

Food for thought!



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Motion Creates Emotion

Ah....but you see, it may NOT be "just you." :-)

Any successful sales person is going to have an empathy with their customers. They`ll feel what the customer feels, know what the customer knows, and be capable of thinking like the customer thinks. That`s all well and good, but the *skill* in being a great sales person is to understand where you leave off, and your customers begin.

Part of learning how to be that sales person is time and experience. It actually takes time to test out, over and over again, whether or not it`s "just you" thinking a certain way, or if you`re part of a larger demographic---a type of customer.

You`re willing to pay a bit more for a better item. Okay, but what does "better" mean? Better than what? In what particular way is it better?

If you can highlight this difference, you likely still would do better on your own site, with a sort of "presence" ad on eBay. We`ve found that eBay is often just a huge flea market, and it`s much harder to sell there on quality. So we use it to get our name in front of the public, build feedback, and sell a few banners.

Over time, we`ve built a lot of good feedback---credibility. So we have a link from our own site, to the feedback pages on eBay. That helps our Web customers get a sense of our stability, who we are, and that we`re on the level.

It`s true the eBay has a lot of traffic, but so does a junk store, resale shop, and other types of very low-price businesses. They`re selling quantity, not necessarily quality (unless you know what you`re seeing). You may want to sell fewer items, but make them quality items, or hard-to-find items.

Consider that even on eBay, the PlayStation III sold for a lot more than retail, because it was hard to find.