Since its launch in 1995, eBay experienced huge popularity in the eCommerce market. At the beginning, eBay was a unique online auction platform and was extremely popular; however, in recent years the marketplace has included fixed-price listings as well. eBay offers customer-to-customer and business-to-customer marketplaces which allow it to support a wide range of products as can be seen by the over 1.5 billion product listings. In 2016, 87% of its gross merchandise volume came from fixed price listings. With more than 171 million active users in over 190 markets, eBay is one of the biggest global players in the eCommerce market.
Even though Spain was hit by the European financial crisis, it still has the fourth biggest eCommerce market in Europe, just behind the UK, Germany, and France. Spain’s total eCommerce revenue is expected to grow to $27.27 billion by 2022 at an annual growth rate of about 12%. But also further growth potential in the Spanish eCommerce sector make it an attractive destination for online retailers. Currently, only 53% of the population is buying online which is about 24.8 million people. This share is expected to increase and by 2022, around 30.5 million people will buy online.
Algopix’s eBay Spain product research
As an auction website, eBay used to list every single auction for a product to allow anyone to be seen. Now that eBay mainly features fixed-price listings, there is no need to present the search result this way, yet it still does. On eBay.com and eBay.de, you can group similar listings but this feature is still missing on eBay UK, eBay Italy, and eBay Spain. This means that every search result contains hundreds or thousands of listings for identical products, making it almost impossible for online retailers to stand out from their competition. One strategy to avoid such fierce competition involves leaving highly competitive products out of your sales mix and offering products with less competitors. Algopix’s eBay Spain product research helps you identify these low-competition products by providing a competition level indicator allowing you to get an idea of a product’s competitive landscape.
Different seller fees makes it a challenge to estimate expenses and profit margins
eBay is free to sign up to however it charges you different fees for providing its marketplace. These fees have a wide range from Fixed Price Insertion Fees over PayPal fees to Final Value Fees (FVF), and spans across all aspect of selling a product on eBay. You can also decide to run your own eBay store for a monthly subscription, which in return will lower some of the other fees you have to pay. All together, this makes selling on eBay confusing and can makes it difficult to estimate costs and profit margins for products consistently.
Algopix’s eBay Spain product research tool takes care of calculating all expenses related to selling a product on eBay’s marketplaces. It provides you with the total costs of selling a product, but also allows deeper insights by breaking down all the cost segments, be it taxes, PayPal fees, marketplace fees, FVF, or logistic fees. Additionally, Algopix calculates your expected profit margin based on the costs and provided purchasing price allowing you to keep an overview of all financial aspects of selling a product.
Algopix’s eBay Spain market research
Every online seller will have to deal with deadstock sooner or later in their career. Deadstock costs money not only because it is capital that sits in your storage and doesn’t sell,but also because it blocks storage room for other products that are higher in demand. This slow inventory velocity can have many reasons: either your price for the product is too high, the market demand has shifted from one trend to another, or other imperfect information about the market you’re selling on. Regardless, it is a problem of a lack of information that can be easily avoided by thorough market research. Algopix’s competition level indicator gives a rough estimate about a product’s supply-side. Further information on a product’s demand level as well as last month’s sales volume and gross merchandise volume (GMV) allows you to understand the actual demand-side. Lastly, a detailed expenses analysis will automatically calculate and aggregate all costs related to selling a product. Algopix’s eBay Spain market research provides important information about every aspect of a market allowing you to make better business decisions in just a fraction of the time you usually would need to gather similar information.
eBay offers a global network of marketplaces, that should be used to its fullest by more eBay sellers
eBay generated around $9 billion of its annual revenue in 2016 from international (non-US) marketplaces like eBay Spain. This was around 60% of eBay’s marketplace revenue. Another impressive figure that represents eBay’s global reach are its customers who are from 190 different markets worldwide, that can be reached by any eBay seller on the platform. Selling on multiple markets can offer huge opportunities for businesses. For example, eCommerce in Europe is expected to grow exponentially in the next years, particularly in southern Europe, like Spain and Italy.
However, committing to a new market brings risk of failure with it because there are many uncertainties surrounding a new market. For this purpose, a thorough market research is crucial. Algopix’s eBay Spain seller tool helps you understand international markets by providing detailed, invaluable information about a product for 14 different markets worldwide. It allows you to understand demand and supply thanks to its Sales Estimator feature, which delivers you a product’s sales volume and gross merchandise volume (GMV) from last month. Also the costs related to selling a product on international markets are analyzed and presented in a comprehensible way. You even get a detailed breakdown of the expenses like taxes, shipping costs, marketplace fees, and many more. This allows you to consider all the important aspects surrounding international expansion before committing to a market.
Sourcing many products is a time-consuming task restraining you from achieving the full potential of your eBay store
Markets are dynamic with demand that follows trends and can change suddenly. When selling only in one product category, you make your business prone to failure which is why you should diversify your sales mix. This allows you to have a continuous cash flow even when one product doesn’t perform as well as the others. This prompts the need for you to assess many different products and pick only the most promising ones. Algopix’s eBay Spain marketplace research supports you throughout your product sourcing process by providing data-rich insights into products’ demand and supply. Additionally, it allows you to analyze up to 200 products at once while still delivering the same high-quality information from the single product search. This allows you to accelerate your sourcing efforts and position your business so you won’t be as affected by market demand changes as before.