As with all other business opportunities, conducting research is essential. When you partner with eBay, you are essentially becoming a merchant of sorts, using the site to reach a larger market. As a merchant, you should be able to answer two basic questions: what will you sell, and where will you buy? For all the obvious reasons, you want to provide a unique product, hopefully filling a market need. The key to success is to find a profitable niche where you either can dominate the competitors or one where you have no competitors at all.

I'll say that again: The key to success is to find a profitable niche where you either can dominate the competitors or one where you have no competitors at all.

There are two main types of sellers on eBay. There are business sellers and garage sellers. Garage sellers, as the term implies, are those who sell various personal knick-knacks on the web, much like in a garage sale, albeit to a larger customer base. As a matter of fact, the items are usually pre-owned, and many ebay sellers base their their whole business on garage and estate sale finds! Of course, some garage sellers just want to get rid of some of their older property.

Business sellers, on the other hand, are those who operate on eBay for the primary purpose of earning a profit. While still a minority, many people are being added to this category everyday. Some have earned so much that they have found keeping their day job unnecessary! To attain this level however, you will have to keep a few things in mind.

First, treat your eBay venture like a legitimate business. The trick to making money with an eBay business is to simply treat it like one. It might start off as a hobby or a sideline, but you should very quickly get serious if you want to earn significant amounts. You may want to create a business name, open separate bank accounts, and accomplishing the necessary paperwork to establish your venture. After that, give it your best shot. Offer great products at low prices, back it up with excellent customer service, and you have a recipe for success.

Second, specialize. You can't be an expert in all the categories in eBay; you can't possibly understand the value of EVERYTHING ON EARTH! To be successful, you should concentrate on just one or two areas, and focus all your energy on those areas. Become an expert in your chosen areas, and the chances of making good trades (and therefore making more money) exponentially increase.

Third, learn to communicate well. Napoleon used to tell his secretaries, ?Be clear, be clear, be clear!? You must follow the same policy. Learn how to write auction listings that accurately describe your product, and don't neglect to include all relevant details, such those involving shipping and handling, return policies, etc. Not only must you communicate well, you must communicate in a timely manner. Try to respond to all questions promptly and courteously, and try to be in touch with your winning bidders from the start of the transaction to its close. This, along with a profitable niche product, is the secret to making money with an eBay business.