My Most Profitable Niche Markets on eBay

[Antique Hoosier]

Rather than debate the activity of this forum, I thought I would present a topic and see what kind of interesting dialog can be exchanged on the issue of Niche Markets and the "Sub Niche" Markets on eBay. I am currently exploring the emerging trend of men who have embraced traditional "Wet Shaving" and are purchasing Vintage Safety Razors on eBay and at antique stores all across the country. Several active forums are fueling this trend which is catching on quickly. One forum I visit on a daily basis on the subject of Shaving recorded 66 new members just last week. It doesn't sound like an incredible amount but it is an emerging trend. I have taken the practice up myself and also have started to scout vintage double edge razors in local antique stores. They can typically be purchased for under $5.00 and then resold for much higher dollars. In january alone I have gross sales of safety razors in excess of $600.00 which is quite good. This is just one area I am exploring. I will offer other ideas as people contribute their own Niche market items that are successful for them.

Regards,

Mike http://antiquehoosier.blogspot.com/

[homespunmoney]

Hi MIke,

While I think your topic might be really interesting... do you really think it would be a good idea to "tell the world" your best ideas? If everyone ran out and saturated the market, the niche would have little to no value.

If I coauld suggest a slight alternative... Why not a discussion about how we develop our "niche ideas". What sort of research do you do and where?

I, for example, have lately been intrigued with the airline catalogues. Almost every item in there is focused on a niche with a realtively affluent market. The questions are..... which ones do you pick and how do you find a supplier far enough up the food chain to make it worthwhile?

Cheers,
Chris

[Antique Hoosier]

Chris, Nothing is secret or sacred about the niches that I try to profit from. In the niche markets that I currently sell in, there are plenty of fine sellers already, but PLENTY of active bidders. You can discuss any form of niche market activity you choose and I'd enjoy hearing what you have to say on the subject, "secret" or otherwise. The REAL truth is most people won't work hard enough to make the ideas work and that is simply a fact. I'm typically on the road 5 days a week procurring product. I really was just trying to get some kind of discussion going. I'm a regular member at several forums and they seem to be active, alive, and lots of ideas exchanged. No offense to the gentleman that runs this one, but as I mentioned in an earlier thread, "What Exactly Goes On Here?" I decided to take the higher road and start what I believe is an interesting discussion. Run with it in any parallel way you'd like so I'm not just talking to myself.

Mike http://antiquehoosier.blogspot.com/

[homespunmoney]

I just ran across what seems like a great niche. There are already quite a few folks in it but sales seem brisk. I am purchasing an digital picture frame... they come in all shapes and sizes, various resolutions but most other features are common. Shipping varies quite a bit (some pretty high), which leads me to think maybe the wholesale price is steep. The only other significant discriminator is that some auctions include a memory card and some do not.

I wonder if they are drop shipped....

vr/
chris

[Gary Hendrickson]

Chris,

Earlier in this thread you'd asked about the kind of research that can be done about various niches. I did some basic research on the keywords "digital picture frame" last night using eBay's MarketPlace Research and here are some figures I came up with.

Last three month's averages:

Average sale price - $107.83
Average BIN price - $132.02
Average store sales price - $155.40
Average bids per item sold - 3.38
Average auction sell-through rate - 30.7%
Average store listing sell-through rate - 2.75%
Average auction starting price - $107.64

Previous month's averages:

Average sale price - $94.89
Average BIN price - $125.65
Average store sales price - $158.04
Average bids per item sold - 1.47
Average auction sell-through rate - 18.01%
Average store listing sell-through rate - .08%
Average auction starting price - $113.51

Some preliminary thoughts from the figures shown above, keeping in mind that these are across the board averages including everything from the small key chain frames to the large ones:

1. Average final sales prices for both auctions and BIN are trending downward somewhat (this may be due to increased number of sellers, dwindling buyer interest, or other factors, or seasonal variations, but someone looking at this niche should attempt to determine why this is).
   
2. Average number of bids for successful auctions has gone down dramatically. Why?
   
3. The auction sell-through rate (which was below eBay's average to begin with) has also fallen dramatically. Again, why? Using the average sell-through and average starting price, it would cost you $12.00 in insertion fees for each item sold. Is there enough profit in these to absorb that?

As you stated, shipping cost vary dramatically - ranging from $0.00 (not sure if this is actual stated cost, or if it shows up because shipping would be determined once the buyer's location is known) to upward of $600.00. Because of the wide variety of sizes available, this would be expected, but there are definitely some seller's in this niche trying to make their profit from shipping alone. Bear in mind, that as eBay becomes more aggressive in enforcing their new inflated shipping crackdown this may no longer be a viable way to increase profits.

I'm not going to make any judgments as to whether this would be an attractive niche or not, and you may have already gathered this information yourself. I'm just using this as an example to point out the kind of basic research people should do prior to deciding if a particular niche is worth delving into further when looking for something to sell on eBay.

[homespunmoney]

Wow Gary,

Great post. No... I have not conducted the same analysis. I've been too busy trying to buy one. We are preparing for my folks 50th Wedding Anniversary and this will be part of the gift.

You are right, there is a lot more research to be done. I've emailed back and forth with the seller and it does not sound as if these are drop shipped.

Did you collect this info manually or are you using a tool of some sort. If so, would you mind telling us what you are using. I know there are a number out there but have not spent a lot of time reviewing them.

Thanks!
chris

[Gary Hendrickson]

Chris,

I used eBay's Marketplace Research to obtain the information. I've been using it since shortly after it was released.

There are several other similar service available, but I personally like this one.

[Antique Hoosier]

Gary makes an excellent point by utilizing existing information he is able to determine his strategy concerning new product areas. I like his model the best although you can find out some broad areas of research simply by doing a Google search. Another area we participate in on eBay is old paper. Much can be found out when you do a little google research on old paper items.

One more point, I don't research drop ship, wholesale, Singapore Crate items, or anything like that in order to sell on eBay. in my opinion the highest demand items will be scarce, unique, and deal with a collector base on eBay. Gary and I have discussed this and we both feel that eBay may be returning to its roots. So, I'm typically out as often as I can finding products in about 6 different niche market areas mainly because I enjoy it so much, its a challenge. I get to hear on my car radio (as I'm headed to my next attic, barn, basement, or antique store, mall, shop, flea market, thrift store, or auction,) How you can make money doing an online business from your home and quit your job because people are making 6 figure incomes with no inventory, no personal shipping of items...just sit back and watch the money roll in..blah blah blah. Meanwhile I'm busying buying, scouting, listing, selling, packing, emailing...the blood and guts of my style of eBay business. It is WORK! I hope someone is lucky enough to carry no inventory, have items shipped from another source and collect multiple Pay Pal payments daily. I just haven't met that person.