Just as there are an infinite variety of items that are available from private sellers on eBay, there are nearly as many items that can just as infinite
Niche markets are the best way to compete in this very crowded marketplace. A good way to define a niche is a product that isn't commonly available at your local chain store, including such large online retailers such as Amazon.com or C-Net. Niches that you have a great deal of existing knowledge about are often a good place to start.
If you don't already have a good idea of what might be a good niche, one way of getting ideas might be to look in your local yellow pages at categories that have a only a few listings in your local area. Especially lucrative are product sectors that are typically served by small, local outfits that often sell at a very high profit.
Just a few options might include:
" Consumer electronics
Already saturated markets such as consumer electronics. This is not to say that there aren't suitable niches available to you within different consumer electronic categories, but they may be harder to come by than things that are used by millions of people such as DVD players or cell phones. Even though there may be plenty of customers to choose from, you'll likely be competing against other wholesalers, meaning that your prices will have to be very low to be competitive - so low that it'll be hard to make any sort of profit at all.
" Hobbies
This category applies to many different items that range from craft-making supplies to photography equipment and just about everything else in between. You can supply the raw materials for projects, plans and patterns for making items, finished products or even e Book guides on how to make money from a given hobby. If you do choose to focus on a hobby that isn't already very highly represented on eBay, you should endeavor to create a store that becomes a "one-stop-shop" for that hobby. For instance, if you're going to supply the materials and equipment for distilling your own essential oils, fill that niche completely so your customers will find a good reason to visit your store and shop around.
" Collectibles
You might be surprised at the things people will collect. Even broken things can be collectible if you are up-front about their condition. While there are some very well established collectible markets such as dolls, figurines and stuffed animals, to remain competitive as a dropshipper, you may be hard-pressed to find a collectibles niche that you know sufficiently well to make good choices about items are most likely to sell. The markets for collectibles are very well represented on eBay and may, in fact, be the "go to" place for collectors, especially in the case of goods that are lightweight and easily shipped in comparison to their relative worth, as in the case of original artwork or commemorative patches for denim jackets.
" Business supplies
This can be a very lucrative market for dropshippers, especially since many trades have very specific materials and tools. They also are very likely to have specific trade publications that are a very valuable source of information about wholesalers and manufacturers that may have worked through local distributors that charge an exorbitant to carry the manufacturer's unique product in North America. By contacting manufacturers yourself and inquiring about dropship opportunities, you may be able to serve markets that single distributor may have neglected, even without undercutting their pricing.
" Media
A lot of people are tempted to jump right in and start selling media such as books, movies and music on eBay. The problem with this is that so has everyone else. Like consumer electronics, this niche tends to be rather saturated unless you find a very specific niche within media, such as recordings of bird calls of the Pacific Northwest or safety training videos.
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Just as there are an infinite variety of items that are available from private sellers on eBay, there are nearly as many items that can just as infinite
