SPECIAL BONUS REPORT FOR TIP MEMBERS

The eBay Hot List: Online auctions' best investment categories


We're going to take a short break from our series on "How To Sell Anything On The Internet" to bring you this Special Report:

Looking to expand your online auction business?

A year-long analysis of online auction transactions provides three distinct opportunities for the online sellers:

  • High-demand items
  • Consistent performers and
  • Seasonal/holiday-specific categories

Scott Kelnhofer, who analyzes collectible retailing for Card Trade magazine told us that, "Now is prime time for auction sellers to experiment with another product line. The trends we've uncovered indicate strong buying in seasonal categories, as well as steady performance in the historically critical areas for online auctions -- trading cards, coins and collectible games.''

Kelnhofer recommends that online sellers who are well-positioned in their current area of expertise test other vertical markets. Holiday-themed items such as Hallmark Christmas ornaments are a common choice, though experts suggest a product line that can be viable year-round may be a more prudent business strategy.

Tim Tritt of Broken Arrow, Okla, who specializes in computer equipment, recommends that sellers explore historically successful categories.

"
My observation is that I would go research completed auctions to see what was selling, where it was selling, what day of the week it was selling," Tritt said. "It's never truer that history repeats itself," he said. "I think if these categories are on the top of the list, it¹s unlikely they will change dramatically in a short period of time. We are creatures of habit. Nobody wants to be left out."

Good advice for TIP subscribers.

He confirms the findings that computer games and PlayStation games top the
computer category.

The issuance of the Sacagawea dollar coin, as well as the new state quarter program begun in 2000, have boosted interest in collecting those coins.

But not all buyer habits are sparked by the introduction of new pieces to the hobby- like coin collecting. Some items have a longstanding tradition and continue to come out on top of secondary market sales annually, with dollar coins topping the list.

"For the last 25 years, silver dollars have been the most popular in terms of hobby headlines, total sales and individual price gains and losses," says Dave Harper, editor of Numismatic News, World Coins and Bank Note Reporter

Fads do influence buying, especially in toys, where both Beanie Babies and Pokémon dominated the top listings for several months. The furor over such crazes, which often crop up around the holiday season, appear to last even longer than some experts expect.

Both Beanie Babies and Pokémon are questionable investments now (April, 2001), however.

"I found the list pretty interesting, considering some of those toy areas have not been extremely hot, in our estimation, for the last year, especially NASCAR and Beanie Babies," said Sharon Korbeck, editor of Toy Shop and Toy Cars & Vehicles. "I certainly concur with Hot Wheels and die-cast being as high on the list as they are. Those markets continue to grow and generate new collectors constantly."

The analysis uncovered the following opportunities, based on a 12-month assessment of online auction markets:

SEASONAL / HOLIDAY LEADERS
1. Christmas collectibles, with Hallmark ornaments and Department 56 items leading the way.
2. PlayStation 2 units and games. The units quickly sold out in stores and are selling for twice to three times the $299 retail price in online auctions.
3. Holiday records and CDs.
4. Computer DVD hardware.
5. Doepke vintage vehicle toys.
6. Bookcases and armories in the furniture categories.
7. Computer games.
8. Plumbing supplies.
9. TV tuners.
10. Movie posters.

HOT MARKETS
1. Nintendo Gameboy games.
2. Cyrix computer CPUs.
3. Intellivision computer game accessories.
4. Little Tikes toys.
5. Sega Dreamcast games.
6. Baby swings.
7. Colecovision computer game accessories.
8. Science fiction DVDs.
9. Polaroid film.
10. Transformers Generation 1 toys.

12-MONTH MARKET LEADERS

1. Baseball trading cards.
2. Women¹s clothing.
3. NFL football trading cards.
4. Pokemon trading cards.
5. Hot Wheels diecast.
6. Cellular phones.
7. U.S. dollar coins.
8. Silver jewelry.
9. CCG Magic card games.
10. Ty Beanies and bears.
11. Satellite TV systems.
12. Wristwatches.
13. U.S. quarters.
14. PC games.
15. Barbie dolls.
16. Beauty products.
17. PlayStation games.
18. NASCAR diecast cars.
19. Everquest computer games.
20. U.S. FDCS stamps, 1951 to present.
21. Computer hard drives.
22. Doll houses.
23. U.S. pennies.
24. Digital cameras.
25. Costume jewelry.
26. Pottery.
27. Depression glass.
28. Printer cartridges and toner.
29. Men's clothing.
30. Gold jewelry.

If you have an interest- as a hobby in any of these areas it's wise to check the market first before diving in.

- DV


Entire Contents © Copyright 2001 by David Vallieres. All rights reserved.