The Early Bird Gets the Niche Product on eBay

One common question I receive each day from readers and clients is, "I need a niche product. How do I find one?"

First of all, I want to state that the term "niche product" is overused and over rated. What does it mean anyway, and does everyone REALLY need one? Many new and seasoned sellers are convinced that they can't be successful on eBay without a niche product. This simply is NOT true.

The definition of a niche product is, "a small, well-defined portion of a market where there is demand for a product but not much competition." Some examples of niche products that were once good sellers include Red Bull soda, Crocs shoes, The Snuggie, and Silly Bandz. These products were unique. Red Bull was the first carbonated energy drink, aggressively marketed to extreme sport enthusiasts. Now, there are at least 25 brands of carbonated energy drinks in the grocery store, and if you try to sell Red Bull today you will fail miserably because there is just too much competition.

The same with Crocs shoes - a foam resin clog shoe with ventilation holes designed for comfort and easy cleaning. If you got in on the Crocs craze back in 2004 (which I did) and sold them on eBay, you made good money. I bought Crocs at regular retail and sold them for a nice markup to both domestic and international customers.

The point I am making here is that finding a so-called niche product is all about keeping your eyes and ears open, and paying attention to what is going on around you. There really isn't a sophisticated research tool that's going to help you identify these products. Terapeak can help you see trends, the most successful sellers are those who are paying attention to what they buy as a consumer, what their kids want, what is being advertised in mass media, and what is new on the market.

Don't assume you have to find a magical wholesaler or supplier for these products. The biggest point sellers miss about selling online:

Making a profit on eBay is about supply and demand. You may have access to something that others don't. Do not assume that because you walk by a product in a Walmart or grocery store every day that everyone else in the world sees that product every day, too. My successful clients (and myself) source products at places like Costco, Sam's, Walmart, Big Lots, TJ Maxx, grocery stores, drug stores, and other retail stores.

And don't expect to find a product that you sell sell from now on, for the rest of your life. It won't happen. Successful niche products have a short life span. Either the market is going to become saturated, too many imitations will be made, the product will be discontinued, or eBay will prohibit it (all of these things have happened to me).

Researching products for sale on or offline is an ongoing process - FOREVER. Most of my clients spend 5-8 hours a week searching for product ideas. Because if you've got a good one going now, rest assured, it won't last forever. You must constantly be mining for product ideas.

I am reading a great book about this topic right now called "Different, Escaping the Competitive Herd." This book is described as a book for people who don't read business books. The author explains that what you want to look for as a seller is a "unique product category." For example, the TV dinner was a unique product. It changed the course of history. The TV dinner was a new way to serve food that saved time and money. That's how you've got to think - what is out there that's new and different, that is not represented on eBay? Granted, truly innovative products like TV dinners and sliced bread are rare these days, but you get the point. eBay does not need more designer handbags, cell phones, or Wii games. Those categories are completely over saturated.

A niche product may not be an innovation, but the manner in which a current product is presented - like dishwasher tablets, yogurt in tubes, coffee that comes in small single servings for individual brewing, or breath freshener strips. Innovation is what people want. Don't follow the herd - you can't even be sure the herd knows what it is doing! Don't assume you have to be competitive - in fact, trying to beat the competition just makes you more like them. Aspire to be different. It's pretty easy to make money when you don't have any competitors.

(Oh, and if you are reading about niche products online, remember that thousands of other people are reading about them too, so you are aleady too late. Pay attention to what is going on around you and think for yourself.)

Related articles:

Finding Niche Products to Sell on eBay

The Ideal Niche Product to Sell on eBay

Online Selling Coach

Start a Business Journal

Keeping a business journal can play a big role in building a successful business. It helps you track your progress as well as plan your next steps. It’s also a good way to track what techniques have been successful.

Journaling can also help you focus as a business owner. It is a great way to keep track of everything on your mind - problems, inspiration, and new ideas. Writing down these thoughts can help you process them. Plus, it provides a place to keep all your thoughts together so you don’t have to worry about forgetting something important.

Starting a business journal is simple. Just choose somewhere to write daily, whether it’s on your computer or in a bound journal. Choose whatever works for you and makes you the most comfortable. If you don’t like using a computer, you’re not as likely to journal daily if you choose it as your method.

It’s important to make daily writing a habit. Set aside time at the end of your day to write down what you’ve been thinking about all day, as well as how you feel about your business goals. Did you have a productive day? Are you frustrated about something? Did you learn something new and inspirational? Think about what you want to do in the future and how you will get to that point.

Also include a list of all you’ve accomplished that day in your journal. Even if it doesn’t seem important, it will give you a way to look back and see how you have spent your time. Include things like shipping packages, answering emails, listing items, researching products, etc. Be specific and include how many emails you answered and how many packages you shipped.

It’s a good idea to look back through your business journal periodically. This will help you get an idea of patterns in your work and even find ways to streamline your days and make things more efficient and productive.

While keeping a business journal can seem like too much work or a waste of time, it can actually end up saving you money and time. By tracking your work and thoughts about your work, you can stay focused and motivated, which will lead to increased productivity.