If you want to create a lasting eBay business where you’re a major player in the field, you need to first find yourself the ideal niche. A niche is a small sub-market. A part of a larger market. Niches are not usually hyper competitive like some of the big markets.
Finding a good niche is your first task when creating an eBay business (and one of the most important). Be sure the niche your going to enter meets the following criteria. If it doesn’t, you risk making little to no money with your eBay business.
Try to find niche that has little competition.
Find product source that is reliable and has a continuing supply at a price where you can make a good amount of money.
Make it hard for other sellers to replicate your niche, types of products, and form of business
Look for a large enough market to sustain your sales goals
Sell a variety of products and spin-offs that buyers would be interested in, allowing you to sell heavily on the back-end.
If you don’t mind selling something you’re not interested in, you can take a slightly different approach to finding a niche. You can go to eBay Pulse and see what items are the hottest on eBay.
If you search around a little, you will definitely find some great niches with little competition and very high demand. Simply remember that your niche should be large enough to support a good business, while being small enough so that you don’t have thousands competitors.
You can prime yourself for good niche ideas by thinking about what interests you most. Start there and see if any markets match your interests. There are a variety of sources available to you that show you niche popularity.
The eBay marketplace is a great tool, but you have to pay to use it. Google Trends (http://www.google.com/trends) is also a great resource.
Another way to see if there is a market for your niche is to use a keyword tool. There you can see how many searches are done per month.
When you find a niche that suits you, type it into the search bar on eBay. From there you can review your competition. Remember, if there is too much competition, you are going to have a hard time selling in that niche.
Don’t be afraid to look into more and more sub-categories of niches. You may find a niche as eccentric as how to teach your parrot to speak very lucrative.
As you go deeper with your research a perfect niche is bound to pop out at you. When it does, it will be pretty obvious. However, sometimes it might take several tries before you find your perfect niche. Don’t get discouraged if you don’t find anything good on your first few attempts.