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How to Make Money on eBay

Selling products is one of the ways to make money on eBay. The first questions eBay sellers should ask themselves are: "What can I sell?" and "Where can I buy?" It's important that you spend some time researching before you decide which products you want to sell.

There are nearly 69 million eBay users who collectively spend $59 million every day. Most eBay sellers are home-based businesses that sell everything from porcelain dolls to locks of Elvis's hair to $100,000 Mercedes convertibles.

Every minute of every day more than 150 new items are listed for sale, more than 500 bids are placed and seven new people register to shop on eBay. About two million new items are offered for sale every day, and 62 million registered users scour the site to find them.

All these facts are enough to assure you that there plenty of ways to receive your share of the eBay money pie. These basic guidelines can help you make money on eBay:

1. Search for the categories that are most popular. The first index is the number of listings that exist under each category. You also need to look at how many bids the products have.

2. Study the ratings of the sellers who are listing products in each category and read their profiles. See how many products they're selling and how many products they've sold in the past.

3. Analyze prices. You need to become an expert in your category and you need to know at which price a product is worth buying as well as the expected final winning price of your auction.

4. Select no more than one or two categories. "Specialization" is a basic rule of marketing. It is better to become an expert on something than know only a little on lots of things. Experts inspire trust and confidence in potential customers. Online marketing is all about trust.

Once you've done the above, you're almost ready to make money on eBay. Before starting to sell, you need to buy. Here are some ideas from where you can source products:

1. Write your own e-book and sell it. If you have any passion or are an expert on a subject for which you can find a niche in eBay, do not hesitate to spend some time writing your own book.

The advantage of this is that after your initial time investment, you can sell copies of the book without having any additional costs, as e-books are digital. Selling information products is one of the most profitable ways of earning money on the eBay business. Even if you're not an expert writer, you can find other people who can write the book for you, eg www.elance.com.

2. Use drop-shipping. There are wholesalers that will sell you products and send them to the address that you tell them.

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