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    1. iSmart is offline

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      #1

      How can I gauge if theres too much competition?

      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

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      #2
      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?
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