Before you jump into buying items on eBay, you really want to collect some information about the items you are looking to purchase.

The first thing I like to do before I purchase anything on eBay is see just how much the item usually sells for. I do this for two reasons. First off, I like to see what is the cheapest price that the item has sold for. Secondly, I want to see the highest price that the item has sold for. I also pay attention to any trends in the prices. Looking at the high price, low price, and average price gives me a good idea of the market for this item.

Why go through the trouble? Why not just bid on the items I want? The answer is simple. I want to get the best deal possible. I also want to check for price gaps and make money from them. A price gap occurs when an item has a significant gap between the lowest price and the highest price. For example, a certain cell phone may sell for $90 on one day and then sell for $145 on another day. This means that there is a price gap of $55. This is a great opportunity for you to make some fast profits.

By doing some quick and easy research, I know how much I can expect to sell an item for. Once I know this, I simply find places where I can buy the item for less than the maximum price.  That way the profit is already built in when I go to sell the item on eBay. When price gaps occur, I can buy the item right on eBay and resell it on eBay for a profit. When we cover selling, I will show you how to virtually guarantee that your auctions always sell for the maximum price.

Finding the information that you need is fairly easy. I do this basic research by searching the “Completed Listings” on eBay. This is very simple to do and will give you a general idea of the price range for any particular item.

In the upper right hand corner of eBay’s home page there is a search bar. Right under that search bar is a link that says “Advanced Search”. Click this link and you will be taken to eBay’s Advanced Search Options. To view “Completed Listings” simply type the name of the item you are looking for into the eBay search bar and click the box titled “Completed Listings Only”.  Then click “Search”. A list of all completed auctions for the last 30 days will come up.

Another way to do this is from any eBay search bar. Just type in the name of the item you are searching for and click “Search”. Once the search results appear, there will be a yellow box on the left side of the screen titled “Search Options”. Just check the box next to “Completed Items” and click “Show Listings”.

Now that you know a little about researching certain items, let’s discuss finding hot markets. I use a technique that I like to call “Follow The Leader”. I call it that because that’s exactly what I do. I let other eBay sellers lead me right to the hot markets!

As you begin researching items that you are interested in on eBay, you will come across many auctions that are selling for high prices. Many times, these auctions are listed by top notch eBay sellers. When I find an auction that interests me, I like to do a little digging into the seller’s eBay business. eBay allows you to get an insider’s look at their selling activity. This simple research technique has uncovered countless profitable opportunities for me.

Here is exactly what I do. When I find an auction  that interests me, I look at the box on the right side of the auction page that is titled “Meet The Seller”. The first thing that I look at is the number of feedback that the seller has. This is the number in parentheses right next to their seller ID. If they have a large number of feedback, chances are they have found one or more profitable markets that they are selling to. But don’t be fooled by a small number. They could just be getting started in a very good market. It takes a little more digging to uncover the truth.

The next thing that I do is look at all of the items that the seller is selling. You can do this by clicking the link titled “View Seller’s Other Items”. If the seller has an eBay store, you can also view the items in their store by clicking the link under “View Seller’s Store”. This link will be the name of the seller’s store and will have the red eBay store icon next to it. Once you do this, you will be able to see exactly what the seller is selling.

Next, you want to look at the seller’s completed items. Once you are on the page that lists the seller’s items that are currently for sale, simply click the box next to “Completed Listings” on the left side of screen. The results will show all of the items that the seller listed over the past 30 days. Look for sold auctions with the bid amount in green. This list will give you a good idea of where this seller’s income is coming from.

Once you take this sneak peak into other seller’s eBay business, you can see what items they are selling on a consistent basis. If they made alot of sales over the past 30 days, chances are they are selling to a hot market. This is a market that you want to be in. Don’t worry about competing with them. eBay has over 150 million users and counting. Noone can monopolize any market. I have successfully entered many markets by using this exact technique….and I continue to use it successfully.