Successful Online Selling
 

Product Life Cycles for eBay Sellers

product life cycles for ebay productsThere are a lot of things that are involved in running an eBay business successfully. EBay sellers have to continually carry out marketing processes, and one of the key aspects of these marketing processes is product life cycle. Thus, as a seller, it’s important to understand product life cycle so that you avoid the common blunders sellers make when sourcing for products.

What is Product Life Cycle?

If you don’t understand what product lifecycle is, you will not be able to predict what is going to be a hot seller in the near future.

Product life cycle refers to the incremental stages that a product goes through, with each stage representing a more advanced or enhanced product than the previous stage. Product life cycle may also refer to the different versions of a product over a period of time.

For instance, there are several versions of the PlayStation console, with the first console named PlayStation (or PS as commonly known). The subsequent follow up was the Play Station 2 (PS 2) and then the PlayStation 3.

There are other hardware variations of the same console, such as the PlayStation Portable, which was succeeded by the PlayStation Vita.

The kind of cycle that the PlayStation console has gone through is its product lifecycle. There’s one distinct characteristic in a product life cycle. As one version gets older and loses its novelty, a newer version (an upgrade of sorts) is released to replace it. How does the replacement occur in the market place?

Demand for the older version dwindles steadily when a newer version is released, and after some years, the price of the old version steadies to a minimum.

Understanding Product Lifecycle

phasing out old products in your ebay businessProduct life cycle comprises four main phases in the sales chain: introduction, boom, maturity and decline. This kind of product life cycle is very common on eBay, particularly with hot sellers. Hot selling products on eBay have a very fast-paced life cycle, therefore, it’s important to get the timing right. If you don’t source for a product early in its life cycle, you will not earn maximum profit from it.

How Does Product Life Cycle Impact Your EBay Business?

During a product’s early life cycle, there’s generally low supply and high demand. This is the time you can make maximum profit from the product, provided you can source it before the general marketplace can get it. A seller ought to be cognizant of the downward shift in demand as the product approaches the later stages in its life cycle.

Selling a product in its middle and late life cycle stages is fairly risky, and therefore needs proper timing. As a seller, you want to source a product in big volume as it approaches liquidation, but you also want to make sure that you do so just before demand starts to dwindle due to saturation in the market. If you get your timing right during this window when suppliers are liquidating and you can sell in big volumes at near-retail prices, then you can manage to squeeze out some descent profit.

It may take time to master the product life cycle of hot selling items on eBay but once you do, the rewards will be worth the efforts.

dropship blueprint

drop ship blueprint

Get instant access here => http://successfulonlineselling.com/DropshipBluePrint.html