I am often asked by people, `Does your list include companies who supply items like DVDs, digital cameras, mobile phone accessories, mp3 players etc.?`.

 

These are some of the items that are considered to be 'hot products' to sell online. Sure everyone wants to buy them, but have you also noticed that everyone else is selling them too? This has created a very competitive market, leading to a drop in the sale price - great for purchasers, but not so good for sellers - leaving only a very small profit margin. It can be quite difficult to actually make a decent living selling these 'hot products', unless you are able to purchase very large quantities at one time - out of reach of the average start up business.

 

There is a solution - find your own niche market. Try to find a product that isn't being provided by anyone else. Just because someone isn't already selling it, doesn't mean that people don't want to buy it, it might just be that you were the first person to think of it. Your niche product doesn't have to appeal to everyone - millions of people buy online everyday. You only have to sell to a very small proportion of them, to make a very good living.

 

People are doing it every day, making an absolute killing selling products in eBay categories which only contain a few hundred listings. Why? Because they have found a unique product with a strong demand, and no competition!

 

Here are some examples of some niche market products to help give you a few ideas:

 

(1) When I first started selling online, I decided picture mobile phone housings (especially Disney designs) were the way to go. They were one of the 'hot products' that had a large demand, so I thought should sell well. I was wrong, everyone else was selling them too, so to make even $100 a week, I'd have to sell about 15 a day - almost impossible to do. Fortunately though, my initial trial order came with some housings with a different design on them - horses. I had selected them as I hadn't seen them before, and my personal interest in horses. These were what saved me. Initially they sold at up to 1500% profit, and though they have slowed, they are still providing a better return than the original Disney designs.

 

This was a great niche market - a product that appealed to a relatively small group of people, that no one else was supplying.

 

(2) Another person on eBay has recently started selling electric fence products - the type of equipment used by hobby farmers, horse owners etc.. I had identified this as a potential market, after seeing the kinds of prices being obtained for the very few electric fence items - the recommended retail price, or even better (very unusual on eBay) - but someone beat me to it before I got organised!

 

This eBayer is doing VERY well, and all in a category that most people would have overlooked, as it only contains a few hundred listings.