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The effects of the eBay phenomenon on American merchandising
By David Espino
With one brilliantly simple idea, eBay was born just a
few short years ago.
From its humble beginnings in the Collectibles
business, it went on to achieve the lofty heights it enjoys today.
As eBay has continued to grow to over 30 million
registered users, it has transformed the ability of individuals (as well
as Corporations) to move product of all kinds.
eBay is now a place where virtually any item
imaginable is available, for the right price.
With a few clicks of your mouse, the doors to the
world marketplace are opened for you.
Similarly, with a few clicks of your mouse, the entire
world can be viewing your merchandise for sale.
It is this awesome power that eBay gives to you, for a
small fee.
Is it any wonder that large institutional sellers,
such as the U.S. Postal Service, J.C. Penneys, various Police
Departments and all types of Corporations have discovered the power and
efficiencies of selling on eBay?
The drawback for the smaller seller is that, as more
and more individual and institutional sellers sign on to sell on eBay,
the supply of similar items will increase.
This increase in supply results in a decrease in
demand, and with that decreased demand, lower ending bid amounts and
lower profits for all sellers.
This has already begun to happen in some categories as
ending bids continue their slow trend downward.
As sellers begin to see profits eroding due to too
many sellers "playing the game", the question of the day seems
to be, "What is the best thing to sell on eBay?"
The simple (and somewhat facetious-sounding) answer
is, "Whatever people are interested in that is not currently
selling on eBay in mass quantities".
More often than not, success on eBay results from a
seller taking on a niche that they are familiar with and enjoy. Many of
the top eBay sellers have built their entire business around a niche
that they enjoy, such as a certain type of collectible, or a certain
hobby, interest or sport.
If you take this approach, not only will you be
happier doing that which you enjoy, but listing items will not become a
"chore", it will be an enjoyable experience.
As eBay continues it’s trend-line of massive growth,
sellers must be increasingly aware of three things that will ensure
opportunities for growth and success:
Opportunities for new products to sell
Alternative venues in which to sell their products
Advanced marketing techniques that can leverage
their time and money
Ultimately, it is this extra awareness that will
determine who the winners are in the game of Online Auction sales.

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