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Motivations
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Not to get too cosmic or metaphysical here, but understanding where you re coming from is the first step in understanding where you re going. Your motivations for becoming a part of the eBay community are a big part of defining yourself and your business. Some folks sell on eBay as an alternative revenue stream. eBay is a great moonlighting job for many people, and others, such as stay-at-home parents and retirees, use eBay to supplement their incomes. Some people come to eBay with the dream of self-employment. They ve discovered the joy of the 10-second commute from the kitchen to the computer, and they relish the freedom of setting their own hours and being their own boss. Owners of traditional brick-and-mortar retail businesses often join eBay to create an online selling presence without having to go through the rigors and expense of developing and marketing their own Web sites. The online community helps them expand their customer base from a limited regional area to the entire world. This broader base of customers on eBay sometimes leads brick-and-mortar businesses to abandon the storefront completely and sell only through a virtual store. Other sellers have existing e-commerce businesses and come to eBay to increase sales and locate new customers. There are as many reasons for starting (or continuing) an eBay business as there are eBay sellers. Whatever your reasons, answering the What brings you to eBay question is the first step in creating a solid marketing plan.
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Make a Plan
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Finding a Niche Market
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Many sellers find that eBay gives them the opportunity to turn their hobbies or passions into money-making endeavors. Other sellers with businesses existing outside of eBay have already found their paths to success by carving out their own specialties or areas of expertise. These two scenarios are closely related, because they both capitalize on niche markets. The term niche market is a buzzword that gets tossed around frequently, and it really just means pitching a specific product or service to a narrowly defined group of customers.
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Niche marketing is positioning a specific product or service to a specialized and focused portion of the market.
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Most businesses start by catering to a niche market. Countless entrepreneurs found their beginnings in fields of their own personal interest, where they identified a product or service that like-minded people needed or desired. Look at all the new-fangled baby care products on the market, from frontloading baby packs to goofy mobiles that mount to car seats. Many of these products were invented by parents for their own babies. They know from their own experience that other parents would appreciate the products, too.
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Discovering Your Niche
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A great thing about eBay is that it can be easy to find your niche market and cater to this group of people (or your niche market might find you). Take a close look at the broad list of eBay categories and subcategories. Figure 1-1 captures just a small portion of this very long list. Each category is a niche market unto itself, and eBay is the broad marketplace that holds together these subdivided markets. All these special-interest niche groups are like little side streets on the eBay highway. You can buy everything from computer equipment, to cars, houses, and services on eBay. For the sake of analogy, think of eBay as a humongous bazaar with thousands of booths with individual vendors, each selling a very specific item everything from copper cooking pots, to fabric, exotic spices, fruits and vegetables, to hand-crafted and other interesting goods. The market is teeming with customers, each seeking something different. No single seller can possibly meet all the needs of all those customers, so each of these smart vendors specializes in a specific product that he or she knows intimately. This connection among the proprietor, a product, and its customers has allowed a centuries-old retailing system to survive and thrive in the modern age. Smart eBay sellers will find a niche market and then work to be the very best in the minds of a small group of avid customers. By being specialized, these sellers can keep their fingers on the pulse of their niche market,
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Figure 1-1 This partial list of categories demonstrates the broad variety of niche markets that exists on eBay.
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maintaining an intimate connection with the desires and demands of their customers. Think about your own interests or areas of expertise and how they are reflected in the products you sell on eBay. Perhaps you re a technophile who sells computer parts, or a movie buff who sells DVDs and videos. Maybe you re an avid traveler who returns home with treasures from around the world to sell on eBay. Many sellers in the antiques and collectibles fields are also collectors themselves and use eBay as a means of thinning their possessions and earning extra money to make new purchases. These examples illustrate individuals selling on eBay; however, businesses of all sizes also need to develop well-defined areas of expertise and create their own niches. If your business employs 2 people, 10 people, or 200, the scope of your business is still guided by your own interests and passions as the chief of the tribe. The important thing is that you convey your expertise to your team members. They, too, must understand your specific niche market to be able to address the needs and desires of your customers in the best ways.
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