Do you want to sell HOT and TRENDY products on eBay & Amazon with little to no competition? But how do you find such products and where do you source them from? And is there even any profit to be made on high demand/low supply products?
I’ll be covering all these questions and more in today’s Reader’s Question post!
As always, each Friday I answer a question sent in by my blog reader and this week it’s Julia, who asked me this:
I’m a huge fan of your work and read your blog almost every day! I have also purchased your Easy Auction Business and eCommerce Magnates courses and all I can say is – WOW! Both courses offer so much VALUE! I don’t really understand why you’re selling them so cheaply as you could charge 10x the price and I would still buy them!
Anyway, I wanted to ask you – what’s your opinion on selling hot, trendy products on eBay & Amazon? Specifically branded products that are in high demand when they’re usually launched?I have been selling on eBay for many years now, but mostly imported every day products from China and am just wondering whether there’s money to be made in such hot products?
If your answer is yes, where should one source these products? Especially branded ones as I have learned from you that Alibaba and China is a no go when it comes to branded products.
Thanks very much!
Keep up the good work.
Many Thanks for your email and your kind words, it really means a lot! 🙂
It’s a very good question, hence why I’ve chosen to feature it in our weekly Reader’s Question blog post. I mostly talk about importing from China, which obviously means buying un-branded or your own brand products. But what about hot, new & trendy products? Can you make money selling them on eBay & Amazon? The short answer is – YES, you can! BUT this business model is not as straightforward as importing from China and it does come with more risk!
So the first thing we need to look at is – what is the definition of a hot/trendy product?
I’m sure you can come up with many variations but in my opinion – a hot/trendy product is a product which has:
- High, quickly increasing demand AND
- Limited supply
By high, quickly increasing demand I mean that it’s something new that’s quickly becoming very popular and demand is usually increasing rapidly every month. In Google Trends, a product like this shows a steadily increasing popularity:
The other part – limited supply, also often comes as a 2nd indicator as demand is simply too high and supply can’t keep up with it. Even if the product is available for sale, the competition will be relatively low as not every seller can get their hands on stock.
Now that we’ve defined what hot/trendy products are, let’s cover some strategies on how to find those hot products that are in high demand.
I shouldn’t really say “products that are in high demand” right now as usually that’s already too late to make money with them. The key to success with such hot products is to actually know in advance that they will be popular and be one of the first sellers to offer that product on marketplaces like eBay & Amazon.
And the only way you can be ahead of your competition is to really KNOW the niche you’re working in inside out! There is no one, general place or website where you’ll find hot, up-coming products so you really have to narrow down your area of expertise.
Once you have done that, you’ll want to find the biggest/best news websites and blogs in that category and actively follow news/discussion/press releases to see what’s coming up. For example, if you want to work with virtual reality products (a very hot/trendy industry right now), you would actively follow websites like:
These are the websites where you’ll find the latest information on new product developments and release dates and you can also predict demand by reading comments, reading about marketing analysts’ predictions and so on.
Kickstarter.com is another good place to regularly check out – see what the most popular products are that you could potentially sell (if the company offers a wholesale scheme). With Kickstarter products though be very careful – only order them when the supplier can give you an exact and definite release/dispatch date as very often there are massive delays in getting product to the market. I’m talking several months beyond the schedule, sometimes even years!!!!
So this is not a straightforward, ABC type of task. That’s why I said that this business model will not be suitable for everyone.
But when done properly, it can be very lucrative. Let’s take a look at an actual real life example of one such hot & trendy product – Google WiFi. It’s a product that creates a mesh wi-fi network in your house, using 2 or more wireless units.
It’s a product many people are anticipating and looking forward to buy (including me) but it has only been released in the US for now and sells for $299 for a pack of 3 units:
It’s not available in the Europe yet BUT some savvy entrepreneurs have of course imported them from the US and they’re already selling on eBay & Amazon for around £500:
That’s a CRAZY mark-up!!! And people still buy it at such high price because they simply can’t wait for the product to be officially released in the UK and other European countries.
And at the time of writing this post, only ONE seller is offering this item on Amazon UK, which means there’s no competition at all.
Obviously, when more sellers start to offer this product, the price will go down but I just wanted to illustrate how lucrative first mover’s advantage can be with such high tech gadgets.
But the question remains – where to buy such hot & trendy products?
I already gave you a small clue – in most cases, these new products are released in the US market first and that’s the place everyone can buy them, to import them into the UK and sell to local and EU based customers. I cover in detail how this concept works in my Easy Auction Business course.
But if the product is not available for sale anywhere else, you should contact the brand directly or their closest authorised distributor to ask about pre-orders for that product. Usually there will be some kind of cap on how many units you can pre-order and most likely you’ll have to pay a deposit too BUT this will guarantee that you’ll be amongst the first sellers to offer this new product.
Lastly, attending large trade shows can also yield good results – first of all – you may find more products that you think will be in huge demand and secondly – you can often speak directly with brand representatives or distributors and make a deal on pre-orders. Meeting people face to face is so much more effective than just sending an email, especially if you’re a small time trader.
As I said in the beginning of this article, this particular business model comes with several risks and you should be fully aware of them before you make any deals:
1) You’ll constantly have to find new products to sell. This model relies on short window of opportunities where demand exceeds supply. Usually this window is just a few months long so you’ll have to look for new products all the time.
2) Difficult to manage inventory levels. This is probably the biggest problem with this model – you’ll never know exactly how many units you can safely buy and re-sell at your desired price. If you buy too little, you will quickly sell out and lose on the potential profit. If you order too many units, you won’t be able to sell them all before competition increases and then you’ll have to lower your prices or even sell below cost.
3) Once competition increases, it all comes down to price. As every seller sells the same product, the only tool you can use to fight for your piece of the pie is PRICE. The more sellers come on board, the lower the price gets and you may reach a stage where you have to sell at below cost price, just to get rid of the stock you have.
Bearing all 3 of these things in mind, I wouldn’t personally build a business solely around this concept. It may be a good side income for existing businesses with steady cash-flow and profit though.
Or it can even be a good model for people who are looking to make some extra cash on eBay & Amazon! Especially for people who are into gadget types of things and know the market very well. They can invest relatively small amounts of money and buy say 10 or 30 units and make a very nice extra income with not much risk involved as inventory levels will be very low.
So to sum it up – yes, you can make money selling trendy products on eBay & Amazon BUT you really have to be good at it!
You have to be well educated in the niche you’re working in and constantly look out for that next big thing.
If this does not sound attractive to you, I would recommend you explore less risky business models, such as Importing from China, Wholesale, Liquidation stock and others.
And that’s it for today! If you have a question you want me to cover in future Reader’s Question blog posts, feel free to get in touch with me via my help desk here. I’ll personally get back to you within 24 hours, Monday – Friday, even if your question isn’t picked for our weekly post series.
Hope this helps Julia & enjoy your weekend!