Reselling on eBay: Specializing vs. Generalizing

A tough question that often faces people looking to get into eBay reselling is whether to specialize or generalize. What is meant by this is whether to sell one certain type of product or a variety of products. Of course, both strategies come with their own set of perks and pitfalls which we will run over in this article today with the aim being to help you figure out what you believe to be the best strategy.

Specializing

Specializing in eBay reselling is essentially choosing a particular type of item to sell and sticking to it. For example, an eBay store specializing in sneakers wouldn’t also sell Funko Pops. Below we have discussed some of the pros and cons of this approach.

Pros

Expertise: This first point is not exactly specifically to do with eBay but it is still worth mentioning. Specialization allows you to build a deep understanding of a specific market. This knowledge can be a powerful tool, helping you make informed buying decisions, accurately predict market trends, and price your items just right. In the context of eBay, this may lead your store to become the ‘go-to’ for whatever type of products you’re selling, which can lead to customer loyalty.

Targeted Marketing: Specializing makes it easier to target potential customers. You’ll know exactly where to find them and how to catch their eye. This makes it much easier to run marketing campaigns which re-direct certain groups of people to your eBay store.

Less Competition: The more niche your product, the less competition you’re likely to face. However, this isn’t always exactly true as it depends on your niche.

Cons

Limited Market: Specializing can limit your potential customer base. For instance, if you’re solely selling comic books, you’re only going to attract comic book enthusiasts.

Market Volatility: Specializing also leaves you susceptible to market changes. If the market for your chosen item takes a dive, so does your profit and you will have nothing else to fall back on.

Inventory Challenges: You might find it difficult to consistently source items in your niche, especially if it’s something rare or hard to find. This can mean you’re eBay store sits with no stock for weeks or even months at a time.

Generalizing

In contrast, generalising refers to selling products from a variety of niches. This too, of course, has its own sets of pros and cons.

Pros

Wide Customer Base: By selling a variety of items, you cast a wider net and attract a broader range of customers. From electronics to collectables, your store could cater to just about any of eBay’s millions of users.

Market Flexibility: In a changing market, having a diverse inventory can be a huge advantage. If one item isn’t selling well, you’ll have others to fall back on meaning your store can remain profitable or at least not unprofitable.

Easier Sourcing: Sourcing becomes a lot easier when you’re not tied down to a specific type of item. Yard sales, thrift stores, clearance sales – you’re free to source from anywhere and everywhere. If you would like to be informed of the most profitable items to resell from sneakers to collectables, tickets and much more then you should sign up for Juiced. Our app is an all-in-one tool for resellers which also contains things such as a cross-listing tool and an auto-checkout tool. It can be downloaded here.

Cons

Lack of Expertise: With a variety of items, it becomes difficult to build a deep understanding of any one market. This could put you at a disadvantage when it comes to predicting trends and pricing items.

Increased Competition: In the general marketplace, you’re likely to face more competition. This could make it harder to stand out and secure sales.

Marketing Challenges: Marketing to a diverse customer base can be tricky. It’s harder to target your audience and your marketing efforts might be less effective as a result, increasing costs in this area.

Conclusion

To conclude, the debate of specializing vs generalizing in eBay reselling doesn’t have a one-size-fits-all answer. It all depends on your knowledge, resources, and the amount of time you’re willing to invest. Specializing can offer the chance to become an expert and dominate a niche, but it comes with the risk of market volatility. On the other hand, generalizing gives you market flexibility and a wider customer base, but you’ll face increased competition and possible marketing challenges.

Arguably the best way to go is to specialise in a certain niche rather than a certain product. For example, specialise in collectables as a whole and not just action figures. This approach makes it a lot easier to build up knowledge whilst still maintaining a variety of inventory. At the end of the day, it’s your call to make but also remember, you’re not locked into one strategy forever and you can always pivot.