Today’s question comes from someone from the Wholesale Help member’s club in a private message. I won’t quote the whole thing, but I’ll give you the gist: “I researched my niche, I found an item, I bought the item, I had some good sales, and now the sales have slackened off. Why are my items not selling?”
There are a few things to cover with this. I’ve narrowed it down to three core selling elements, and it all ties together with a fourth. The three keys are: demand, profit margin, and competition. Your profit margin and lack of competition don’t matter if there is no demand. Your lack of competition and demand are pointless if there’s no profit margin for you to make money off your sales. Your demand and profit margin mean nothing is the competition is too high, because you’ll never be seen among the crowd. These are all good things to research before you by a large number of an item. Of course, if you find yourself having issues with these things, it’s best to lower your price until you sell out of the item, make your money back that you spent on getting said item in the first place, and try again with something new.
Of course, there can be variations to these rules. For example, it’s okay if you have a good profit margin and low competition but the demand is a little lower. When buyers do look for the item, low competition drives them to you and the high profit margin puts money in your pocket. If profit margin is the weak element, but you’re still selling a large number of the product, you can make that work. If you sell fifty items at a £1 profit, you’re still going to make £50. I don’t like to do it that way, but it could work out. Competition is hard when it comes to variations, though. If there’s a high demand, you may still make some money, and it may be worth it if the profit margin is astronomical, but several dozen other people have that same idea.
The final thing that ties all of this together is scale. It would behoove you to stock your eBay store well with complementary items, because some items sell quickly, some don’t, and some fluctuate between highs and lows in regards to demand. Having more items stabilizes your business. If you have one item that you sell five times per month, you’re still doing okay. But, imagine if you had twenty items, all of which sell five times per month. Instead of making five sales per month, you’d be making a hundred. If your profit margin were at, say, £20/item, you’d be making £2000/month. In terms of sales, that’s not bad at all.
While that’s the general overview of the question itself, I’d like to take a moment to thank you guys. By my donating 20% of all the profit from the sale of my eBay tutorial DVD course (which is still available for sale!), we’ve managed to raise over £300 for cancer research, which comes out to over $500 USD. If you haven’t already gotten the DVD, I wholeheartedly encourage you to do so. The DVD will help you and your business, and your purchase will help fund cancer research.
Check out the video below for a more detailed description of the above!