Avoid your Closest eBay Competitor – Yourself!
Sometimes the biggest eBay competitor is yourself. This is because eBay is an already crowded market and listing too many items at the same time can flood it. Like other markets, eBay thrives on the forces of supply and demand, if you try to auction several of the same items simultaneously, the result will be a surplus causing prices to decrease and bidding to slow down.
Though eBay follows the traditional rules of supply and demand, it does not have the standard barriers that a keeps a customer from going elsewhere. Because eBay is an enormous market confined to one website that is accessible by everyone, buyers and sellers are all on a level playing field. This is because there are no logistic incentives such as going t a store that is close to you as opposed to one that is slightly farther a way but has better prices. Customers can view several auctions at the same time and generally do not possess the feelings of loyalty that often come with shopping in a traditional market.
Because of these unique characteristics, it is important to understand how to avoid being your own closest competitor. It is important to realize that selling multiple products at the same time may not be the most effective way to make the most money. Listing items in bulk almost always floods the market and drives prices down.
Many sellers assume that if they are making a profit by selling one item, they can double the profit by selling two. This misconception can lead eBay sellers to devise an ineffective selling strategy. Before listing multiple items it is important to consider the impact that will have on the market for that product and the resulting price.
One way to avoid competing with yourself is to time your listings in advance. Try to schedule your auctions when you feel there will be more buyers for your product. Listing several of the same products simultaneously is most effective if the market for the item is large, meaning there are many potential buyers.
As with most markets, eBay is predictably cyclical. This means that buying and selling large quantities of items usually happens in waves. If you do your research ahead of time and discover that the eBay market is saturated with similar items, chances are waiting would be to your advantage. Holding off until the volume of similar products decreases will help you get a higher price for your item.
Staggering your listings can also help insure that you won’t be your own biggest competitor. Do not plan all your auctions at the same time; instead, space your listings out with a few days between them. This will allow buyers who were interested in the last auction a second chance to bid.
It may also be helpful to list your item for a fixed price rather than auctioning it, especially if there is a limited market for that item. The auction method limits the amount of time potential buyers have to place bids. If the market for your product is small you might not get enough attention before the auction closes. Placing a fixed price ahead of time can help you avoid that drawback.
Because the eBay market is already overcrowded, it is important to do your research before listing your item. If the market is being over run by sellers offering the same product, it may be wise to hold off on your auction. Also, if you are selling multiple products, you may wan to consider listing them at different times to avoid flooding the market and driving prices down.
That's all for today.
Don Guindon |
