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Hello all, I've just invested in Terapeak and a subscription to esources.co.uk
I have a couple of products in mind that could possibly make a bit of money
example 1 has 7000 listings, average price of 11 dollars and 72% sell through rate.
example two has 50,000 listings, average price of 18 dollars and 62% sell through rate.
I have no idea what would be considered as low competition. so I really need some wisdom on this
Thanks
:confused:
Hi iSmart,
Great question! :)
Assuming a 30% margin on the sale price of each unit, we have that:
Item 1: $11 sale price per unit, $3.3 margin per unit.
Item 2: $18 sale price per unit, $5.4 margin per unit.
Item 2 may appear to be a better option at this stage, until you look into the number of listings:
Item 1: 72% of the 7000 listings sell, meaning that 5040 listings out of 7000 listings result in a sale, whereas 1960 don't.
Item 2: 62% of the 50000 listings sell, meaning that 31000 listings out of 50000 listings result in a sale, whereas 19000! don't.
The risk of not having a sale in the case of item 2 is much higher, which quickly offsets the higher margin.
One note: are you certain the keywords you are using on Terapeak aren't too broad?