What is the point in spending a significant amount of time sourcing products to sell on eBay if they aren't profitable? The last thing you want is simply to break even, or even to lose money, because the items that you thought would make you money simply aren't as successful as you hoped. 

There will always be occasions where your wares will struggle to make you money, but by taking a few simple steps to finding the most profitable products to sell on eBay you may be surprised at how much you can minimise that chance. 

Step 1 - Establish your minimum profit per sale 

Before looking for products to sell on eBay you may wish to consider the minimum amount of money you wish to earn on each sale. Would you rather sell five items that each make a profit of £1, or one product that brings a return of £5 after all other costs have been subtracted? The more profit per item you make, the less work you will need to do to make the same amount of money so set your minimum profit at a reasonable level.

Step 2 - Drill down into your niche market 

You may find that the most profitable products to sell on eBay are found buried within your niche market. Although it's true that some of the most popular items on the auction website will be likely to sell each time, it is unlikely that you will reach your target profit per sale amount when selling in these areas. Instead think of the subcategories that may fall within your particular area of the market to see if there may be some lesser known and yet still popular items to sell. You will need to research using eBay itself to see exactly how much you are likely to make for a particular product, as well as eBay Pulse to discover what products are actually searched for on eBay. 

Step 3 - Source your stock 

By this point you should know the minimum that you wish to make for each sale, and have an idea as to some potential products that you could sell. Now you need to source some stock and see if your minimum profit per sale plus the price of the product from the supplier equals the amount that you can hope to earn on eBay. There are several different options to consider when it comes to getting your hands on items to sell. You may wish to use one or more of the following: 

- Charity shops/car boot sales. Although it's unlikely that charity shops will consistently sell enough of your products to prove a reliable source, you may get lucky and find some very well priced items to sell on for significant profit in your niche market. 

- Wholesale suppliers. Wholesalers will offer you products at a cost that is lower than retail, though you will usually have to buy in bulk. Consider your other costs as well as the price that the wholesaler offers, such as forking out for storage space if you are selling large items, and postage costs. 

- Dropshippers. Unlike wholesale suppliers where you must find somewhere to keep your goods before selling, dropshippers will actually post items out for you to the winning bidder of your auctions. They will usually charge a little more for this service, but when you think of your own storage and postage costs this can help you to maximise your profits.