Chapter 2. Researching Your Business Model

The first step in preparing to launch your eBay business is to do a little research. In particular, you need to find out as much as you can about any and all products you might want to sell. You need to discover how well those products are likely to sell for you, as well as determine the average selling price for each item. Combine what you learn about sales rate and sales price, and you can make a good estimate as to how much revenue you can generate selling that type of item.

The value of this research, then, is that it helps you determine what products to sell. Pick a product category, and research the auction close rate and average selling price. Avoid those categories that don't meet your criteria, and target those categories that do.