As you look for inventory for your Ebay store, you wander into a discount store that just stocked shelve with new product.  You can't believe the great deal on that designer towel.  The retail price is $50 and the discount price is $3.  There are 50 on the shelf.  How many should you buy?

This is a problem I have faced at least four times this summer.  I purchased a sham and it sold on Ebay in two hours.  I went back to the store, and there were no more.  I traveled to stores as far as thirty miles away and could not find another.

Then there was the time I saw all of these wonderful sheets for $8 each and the retail price was $125.  Of course, I purchased them all.  Then I went to another store in the chain and purchased all of theirs.  My first two sales were quite profitable.  The third and fourth did OK but not as well.  Then all of a sudden, my auctions were ending without anyone even watching!  What happened?  I did an Ebay search and found some people selling the sheet at a fixed price which was less than what I paid and others whose sheets weren't selling at all.  The market had been flooded.  So what was I going to do with 20 sheets that retail for $125 and I paid only $8 each?

About a month later, I started finding matching items for these sheets.  I was able to put two whole sets together; sets usually sell better than individual sheets.  Every now and then I am able to sell one of these sheets.  I may have to give a few sheets as Christmas gifts!

The key is to do research and constantly be aware of the competition, what is selling v.s. what is not, and be very flexible.  It is possible to miss the mark even when one does research; however, one doesn't miss the mark as badly.   Because I sell domestics, it is important for me to be able to spot the designer jewels in discount stores, at yard sales, or wherever they might be.  If there is a large quantity, I must consider how long it will take me to sell them all and get a return on my investment.  Product that doesn't sell is taking up space and not adding to profit.