Use research tools to increase your eBay business and improve your eBay sales
Market analysis is very important to determine those products that sell best on eBay. Whether you are paying eBay $19.95-$79.95 listing fees for featured auctions, or a few dollars for listing upgrades, you need to continually evaluate the profit potential, profit margin, and sales percentage of your products.
Consider the length of auction, type of auction (Dutch auction, fixed price or normal) description, headline, price, and a number of other factors.
The best way to perform market analysis on your products is to use a market research product like HammerTap’s Deep Analysis, This tool can help you decide those items to feature and those that should be discontinued as well as which special enhancements to use on your eBay auctions such as Bold, Highlight, Gallery and so on.
Here are some of the things you want to analyze:
Sales percentage: Number of listings for a certain item / number of sales.
Profit margin: Average profit of the item in dollars and percent.
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 do best in?
Be sure to calculate all your costs:
Product cost including inbound shipping.
Final Value fee (if the item sells).
Auction Management Service (if you use one).
Credit card or PayPal service fees.
Performing a market analysis is the best way to maximize your net revenue once you have listed enough auctions to collate plenty of raw data. Start collecting the data with your very first auction.
An amazing number of businesses fail because they do not understand their costs. Keep careful track of all your costs. These include: product cost, in-bound and out-bound shipping, storage, packing materials, eBay listing fees, auction management service fees, credit card transaction fees, monthly ISP hosting fees, image hosting fees, telephone, etc. It is amazing how fast the small fees can add up and eat into your profits. A good bookkeeping system such as QuickBooks can be very helpful to understanding your costs and figuring your true profit.
I don’t know of a single really large or successful eBay seller who does not analyze their auctions on a regular basis.
Home page featured auction profit margin vs. featured plus profit margin: Does your profit margin from home page featured auctions for a certain item exceed your profit margin for featured plus auctions?
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