How to Find High Profit Products to Sell on eBay.
How to Find High Profit Products to Sell on eBay
Hi guys, Neil Waterhouse…
Now, we’ve been talking a lot about drop shipping but this weeks video is about finding top selling items on eBay and then how to source them from the suppliers and the wholesalers. Now, this strategy I’m going to share with you now it’s not drop shipping so please don’t confuse it with drop shipping. Drop shipping is a totally different methodology or different strategy. The difference of course between a drop ship business and an importing wholesale or FBA business is with drop shipping you get paid first before you purchase the inventory. Which makes drop shipping a cash flow positive strategy. Drop shipping is also known, of course, in the industry as virtual inventory. With a wholesale importing or FBA business model it’s the opposite. You pre-purchase inventory up front from your suppliers and then when the items sell you get paid. Bottom line is, with drop shipping you sell items and get paid first before pre-purchasing inventory. With wholesale importing and FBA you pre-purchase inventory up front. Then after each item sells you get paid. Okay, so there’s five steps in this strategy which I’m gonna share with you now. Step one, is to come up with 5 or 10 of your own unique power keywords. I’ll explain what a power keyword is in a sec. Now you can use the same, if you’ve done the drop shipping stuff before, it’s the same thing to find the power keywords. For those who haven’t done that, I’ll go through it now. Now, the reason you do this exercise of finding power keywords, is to make yourself unique so you don’t fall into the trap of focusing on the same items most beginners focus on i.e. you know, mobile phone accessories, USB cables etc and all the other fast selling items which have got very low profits or very low margins. I’ve been importing now for over 30 years and selling online for over 20 years and I see this same mistake over and over again. The problem with these faster selling items is they normally always have the most competition and because of this, you normally always need to purchase a ton of them to get any kind of decent profit margin. Now, I’m not talking about making 10 cents here, 20 cents there… if you live in a first world country you wanna make some decent kind of money not just little tiny bits of money where you can basically buy a bowl of rice. Anyway, very often, you know, you can make much more money selling items that are not the top sellers because, there’s far less competition. So, come up with your own power keywords. Now, a power keyword is simply a keyword which meets two criteria – The first criteria is: It is any item that sells on eBay or Amazon for between 20 dollars and 2000 dollars. And the second criteria is that it must have a history of selling at least 15 times per month for at least three months. We do this, of course, because we don’t want to purchase inventory for any item unless it has a good sales history i.e. at least 15 sales per month for at least three months. Someone is snorting behind me. Lost my train of thought. Anyway, you can also check Google Trends to see the trend of the keywords and I’ll put up a link to Google Trends which is a free app by, a free tool, by Google. Now, coming up, with your own power keyword is simple, you find these power keywords by looking around your own environment, you know, and your own environment could be your home, it could be a room in your home, for instance if you’re in your kitchen which items can you see? Is it a blender? A toaster? Pots and pans? – whatever. Do you have a hobby? Do you like craft, for instance? If you do, what do you use for craft? Are there tools that you use for craft? Another place to get these power keywords is if you have a job, look around your office, you might see a whiteboard, tables, chairs, calculators, whatever. There are hundreds of thousands of items that meet the two criteria. Every time you see one make a note in your note pad, in your phone but remember, you only need 10 to 20 power keywords. Now, where a lot of people go wrong with this is they make the mistake, or they mistake a power keyword for a product. A power keyword is a generic word i.e. “solar panel”. A product is X, Y, Z brand of solar panel. A power keyword is just “solar panel”. Now, so for this exercise only write down power keywords i.e. “toaster”. Not Philips X, Y, Z brand of toaster or X, Y, Z model of toaster… Just Philips toaster, or just toaster. Sorry, I got that wrong. Just toaster. Philips toaster is a product, toaster is just a power keyword. And all you’re doing on this exercise is power keywords. So, for this first exercise, all you’re looking for is power keywords, and only 10 to 20 of them. This should take you no more than five to fifteen minutes. Now, once you have your 10 to 20 power keywords on your list, go to eBay and do a search for one of those power keywords. For this example the power keyword I’m gonna use is solar panel. So, type in one of your power keywords into the search box at eBay and then click the search button. Now in the search results you can see a whole lot of sellers selling items with the keyword solar panel. Now, click on anyone of the listings… next click on “visit store”… Then click on the seller’s name. The seller’s name should be blue to indicate that it’s a clickable hyper-link. Next, click on “items for sale”… next scroll down the left-hand side and soon you’ll see the check box “sold listings”. Click the “sold listings”… Now you’re only seeing items which have sold in the last 90 days. Notice also that all the prices are showing in green, this means they’ve sold. Next step is to click on any of those listings. When you do, look for how many times the item has sold. In this example it sold 976 times. Next step is to click on the red “976” as this is actually a hyper-link. When you click that hyper-link eBay will then show you the dates and times the item sold, and also for what price. Any item that’s sold a minimum of 15 times per month for the last three months gets recorded on a spread sheet. Now, so now we know how many times the item has sold and for what price. The next step is to find out how much the item costs. To do that, go to Alibaba or whatever favorite supplier sourcing website you prefer, to find the product. Personally, we prefer to use Alibaba as Alibaba is bigger than eBay and Amazon combined. But there are many others including DHGate, Global Sources, you know, a multitude of them but just choose whichever one you prefer. Now, the first strategy to find items on Alibaba is to just drill down using the search box just like you’re searching anything on Goggle. And the second strategy is to click the “request quotation” button to get suppliers to give you prices. Now, once you’ve found the supplier and you’ve got your cost price make sure you also take into account the other costs when working out profit margins. Take into account eBay fees, PayPal fees, shipping from your supplier, shipping to your customer etc. And when you have all this information put it into a spread sheet and start building a list of products. When you’ve got 10 to 20 products sort them all by profitability and of course, the most profitable ones are the ones to focus on. Now, don’t expect every product to be profitable once you add eBay fees, PayPal fees etc. Like everything, it’s a numbers game. The more items you research, the more profitable products you’ll find. But if you’re new to this there is light at the end of the tunnel. Learn the procedure, then outsource it to low cost overseas virtual assistance which you can get from one dollar per hour. Like I’ve said many times before always aim to spend 10% of your profits on low cost overseas virtual assistance. At the end of the day, it’s the best team that wins and the beauty of living in this day and age that we all live in now is we can easily build virtual teams. That’s all for this week please scroll down and leave me a comment below until next week, list more, sell more. This is Neil Waterhouse.