Starting a business on eBay is fairly straightforward but the biggest challenge is finding the right items to sell. First you need to decide what you are going to sell and then to go about sourcing it. There are a number of tried and tested tips for selecting the right products to sell.

• Do you know something anout the product? Avoid merchandise you know absolutely nothing about as you will struggle to write a proper listing and answer questions from potential buyers. Choose something you are knowledgeable about or something you can learn about quickly and easily. Staying focused on a particular category of merchandise or niche allows you to develop an expertise that will make listing your products and managing the selling process much easier. Really successful eBay businesses seem to specialize in one category and build a reputation for selling those type of items.
• Will it be profitable? Research your product - is there a demand for it and how much will it sell for?. What items sell well on eBay. One of the best places to research pricing and popularity of items is eBay's Hot List which shows the products in each main category that are selling best. eBay also offers sellers a tour of virtual rooms in a house, such as a living room, where sellers can click on items to see how much similar items sell for and how often they sell (popularity). The Want it Now listings will give you an idea of the products buyers are actively searching for.
• What is the product life cycle? How long is the demand for the item likely to last? Fad items have a limited life cycle and are impossible to sell once the fad is over. Some technology items have short life cycles due to constant advances. Also consider seasonal changes in demand for a product. Heavy coats will not sell well in summer and gardening equipment is not in high demand in winter. If you have enough storage space you can buy off-season bargains and hold them until the right season when starting a business on eBay.
• Can you list the product successfully? Can you properly photograph and describe the product for good listing? Items that are difficult to explain and that will not photograph well are far more challenging to sell.
• How easy is it to ship? Your product should not be too difficult to package and ship or easily damaged. Consider the costs involved in shipping it. eBay, Fedex, UPS and the US Postal Service all have shipping calculators on their websites to help you determine approximate shipping costs.
• Can you store sufficient of your product? Make sure you have enough storage space for your products. Big items may be difficult to store if you don't have proper storage space like a basement or garage.

Once you have decided what it is you want to sell you need to find the best way of sourcing it. Finding products to sell in quantity is the most common challenge eBay sellers find. It is simple enought starting a business on eBay selling off unwanted or unused items from your wardrobe or house but once you have sold those you need to find new sources of merchandise. Here are some ideas for successfully finding inventory and launching your eBay home business.

• Garage sales. Garage and yard sales as well as thrift shops are good ways to find items at bargain prices. Although you will probably not be able to purchase big volumes of merchandise these outlets give you the opportunity to handpick speciality items that you can resell with a good profit margin. You can find listings of garage sales in the classified section of your local newspaper or advertised on community boards. Craigslist.org also lists garage sales by area. Try to find sales in more affluent areas as they are likely to have better quality items for sale. Thrift stores maintined by the Salvation Army and non-profits are the best thrift stores to look in. Often merchandise found at thrift stores has been donated by middle to upper income families and can be high quality items in good condition.
• Pawnshops. Depending on your category or niche pawn shops can be a good source of products. Following the recession these have seen a big increase in business. Gone are the days of the image of seedy, dingy pawnshops, today the large pawn shop chains like Cash America International and First Cash International more closely resemble mall jewelers or local retail outlets. The nearly 11 000 independent mom-and-pop shops across the U.S. can also be a treasure trove of bargains.

• Retail sales. Keep an eye out for the big sales that are held at local retail stores at certain times of the year. These sales can provide some of the best priced products that can be resold for a good profit on eBay. When starting a business on eBay consider seasonal sales and look for bathing suits and beach towels in October to resell in the summer.
• Estate sales and auctions. These are held when someone has passed away, needs to liquidate their belongings or is relocating somewhere smaller. They are usually held inside a home or at an auction warehouse. You can find out about estate sales in the classified section of your local newspaper or contact auction houses directly for a listing of estate sales.
• Flea markets. These are good for picking up hand-crafted and one-of-a-kind items that are in demand on eBay. Custom made items like belts and jackets are popular with buyers looking for something unique. You can find a listing of U.S fleamarkets by state at www.fleamarketguide.com and www.americanfleas.com

• Going out of business sales. You can find great bargains at these sales as the company has to get rid of stock quickly. Look for going out of business sales in the newspaper in both the ads and the legal section.
• Storage unit sales. Storage companies can confiscate and sell the items they are storing if people don't pay the rental on their storage unit. Contact the storage companies in your area and ask them to let you know if they are having a sale.
• Buy wholesale from manufacturers. Many eBay sellers buy merchandise directly from wholesale sources to resell on eBay. In order to find quality distributors when starting a business on eBay you may need to spend some time sifting through the rubbish! If this is done properly wholesales items can give high proft margins along with high volume sales.
• Trade shows. Find trade shows that are related to the products you have decided to sell. Many of the smaller companies at trade shows look for distributors for their products and are negotiable in terms of price per unit.

Starting a business on eBay requires careful planning and research. Find out more about selling on eBay using these guides.

About an eBay home business

How to start as a seller on eBay

Pricing your products for eBay

How to sell on eBay

Making money on eBay - what you need to know

eBay business ideas

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