chapter we’re going to pick up with the advantages of disadvantages of selling certain items. I’ll try to keep this as brief as possible.
Products basically fall into what I call two categories. The first is cheap and average priced items and the second is expensive items. There are advantages and disadvantages of selling each kind.
The advantage of selling cheaper items is that they are easier to sell simply because of the price. Most people go to Ebay to buy things mainly because they are looking for bargains that they can’t find elsewhere.
Another advantage of selling cheaper items is that they don’t have as many returns as more expensive items. This is pretty close to the $7 ebook principal that I discussed in earlier volumes.
And finally, cheaper items are easier to get your hands on. You don’t have to suck up to people to get them. You simply go to your supplier and get what you need. It’s that simple.
The disadvantage of selling cheaper items is that there isn’t as big a profit margin. Plus, you have to sell quite a few of them in order to make any kind of real money at all doing this. This means more work for you to do. Plus, there is more competition in the cheaper item arena. So it’s going to be harder for you to make the sales.
After price, we have the difference between selling new products and old products. There are advantages and disadvantages here too.
The advantages of new products are pretty obvious. They’re new. They’re the talk of the town, under warranty and more people are going to want them, especially if they’re a hot new item.
The disadvantages are not as obvious to many people. For one thing, because they are new, and especially if they are hot items, most of these are almost impossible to get your hands on. And if you can, the wholesale prices are usually a fortune. Plus, you have to compete with more people including stores that usually sell these things for a discount. This leaves you much less room for making a profit.
Used products have their advantages and disadvantages too.
The advantage of used products is that there isn’t as much competition. With so many niches to choose from, and so many old products in each niche, you should be able to find one where you can dominate easily. Used products are also easier to get your hands on. People are selling their old things all the time.
The disadvantage of used products is that because they’re not new, less people want them. Most people want the shiny new thing. That’s just the way it is. Another disadvantage is that they don’t come with warranties. If there is a problem, you have to deal with it. Plus, many times, used products are outdated or can become outdated very quickly. So having used items in inventory gives you more chance of being stuck with things that you can’t sell.
As you can see, there is no perfect solution, which is one of the reasons why I got out of the Ebay business.
In our next chapter, we’re going to start discussing some ways to maximize your profits.