Using the closing relationship on eBay
Tea close ratio (CR) gives sellers an indication of how well they are doing. It also provides an entrepreneur with data that allows them to compare their results with the results of their peers. Depending on the dynamic, the closure rate can also give an indication of which areas need improvement.
Closing Ratio information provides important market intelligence for anyone looking to participate in or start and grow their online auction business on eBay. In online auctions, including eBay, the closing rate is determined by dividing the number of successful auctions by the number of auction listings. In other words, the number of items actually sold divided by the number of items offered for sale.
To determine the Close Ratio for any category you are interested in:
or just view the going, going, going pages on eBay for that particular category;
o count the number of listings on the pages;
or deduct auctions with a reserve; and
or divide the resulting number by the number of auctions that have been successfully closed;
o Number of auction items going, going, going for the category you are interested in. Suppose 1,000;
o Less Auctions with Reserve Price. Let’s say 100;
o The net number of items listed for sale is therefore calculated at 900;
o Number of items actually sold for that category, say 800;
o Divide the result from step 4 by the result from step 3, ie 800/900;
Therefore, based on the data from the example above, the resulting close ratio = 88.89%
Simply put, this means that out of 10 items listed in the Chosen Category, 9 items (88.89%) were sold. Obviously, the higher the closing rate, the better chance you have of selling your items. However, you should be aware that the CR can change (up or down) depending on the time of year and changes in tastes and fashion, effects of consumer advertising.
When choosing What to sell on eBay, you have several options. In the final analysis, the final choice is yours. However, you can maximize your earnings by following some basic steps:
First, identify your target market – for example, families with children, families without children or 2-income families (probably more disposable income to buy luxury items like digital cameras), working mothers, children, fishermen (fishermen), sports fans by sport category, stay fit fans etc.
Please choose your product option(s) from the list below: Once you have decided on your target market(s), you need to decide which option(s) you will adopt:
Oh Option 1 – Focus your efforts on any special expertise or interest you may have in a particular field, such as antiquities, rare coins, and stamps;
Oh option 2 – Sell consumer products of any description with a special focus on market trends, i.e. hot selling items and accessories, eg computers and printers, matching handbags and shoe mitts;
Oh Option 3 – Focus on items with a high close ratio: Say anything with a CR of 80% or higher;
Oh Option 4 – Sell a judicious mix of items in all three categories, i.e. Antiques, Hot Sale Consumables, and any category with a CR of 80% or higher;
Oh Option 5 – Create your own product that you can sell yourself and keep 100% of the profits. For example, there is almost always a high demand for “How To” information and products;
Brainstorm – spend some quiet time thinking about your professional and other training. Are there any skills or experience that you have that someone could pay for?
Do some mind typing – make a list of 5 to 10 things that you are good at and that someone could pay for;
Prepare for a short report or wrap it up and try it out on eBay for, say, $1.00.
IMPORTANT NOTE:The information presented in this document represents the author’s experience and views with the subject matter at the time of publication. No guarantee is given as to the amount of money, if any, the reader will earn by following the steps outlined in this Article and the reader is encouraged to seek competent legal and accounting advice before engaging in any business activity.