Beware Of eBay Advice From "Auction Gurus"

Hi Gang,

I recently was reading an article about supply and demand on eBay.  Please take a minute and read the article here.

Towards the end of the article, the author asserts that "If you are the cause of too much supply, you can drive prices down all by yourself, lowering yours, and everyone else's margins in the process."

Let's be honest here:  the author didn't even take the time to research his article.  He wrote completely on the assumption that there were 300 Tommy Hilfiger polo shirts are being sold on eBay.  The truth is that of this moment, there are over 1,000 auctions for this particular item.  The point here is this:  if you are going to make these type of assertions at least back them up with some proof.

The author of this article is definitely from the "lack" school of thinking.  This school teaches that economically, there are limited resources, and you better figure out how you are going to get your "piece of the pie".  But reality teaches a completely different lesson.

Does anyone remember in the late 70's when these same lack oriented economists predicted that we were about to run out of oil?  We were no longer going to be driving cars by 1985 because of a lack of petroleum resources?  Well as you can surmise they were dead wrong.  And so is the author of this article.

Do you really think it is coincidence that across the street from most Burger King's there is a McDonalds?

Competition IS NOT your enemy.  Competition is a good thing.  It means that you are selling a hot commodity.  And this means that you can dominate on eBay for many reasons but I'll comment on two of them:  1.  Most of the people selling on eBay (I'm guessing 98% or more) are NOT marketing savvy.  They have no clue how to market their product efficiently.  2.  All you have to do to dominate your category is TO BE marketing savvy.

Brush up your skills on writing effective ad copy.  Learn marketing techniques that are going to give you an advantage.  Do this and you can win so easy!

And while you're at it, straighten out those attitudes and beliefs, because (hint, hint) this is where you are really going to make a difference.  Start reading good books (like the ones in the right column).  Be a student of effective marketing.  And watch those profits rise and rise - despite the competition.

I sell in an area on eBay with the second most trafficked category:  apparel.  And guess what?  I dominate.  And guess what else?  My competitors can't figure out why.  But it is really simple:  I do it better than the other guy!

Don't fall prey to the negative thinking that is prevalent in most advice that you receive concerning your business.  Take a chance and believe that you are better.  And watch those eBay auction profits grow!

Talk to you again soon,

Tiger Todd

Comments

[Steve]

Great post. It's not necessarily what you market and its availability, but how you market it. You can have what everyone wants, but if you do not know how to sell it, then the only enemy(competitor)is from within.
One comment---The Hifiger example was strictly hypothetical not an assumption.

Great blog by the way!