Just to add to the topic,
Been with eBay for quite a while now and power seller for a second time. Just like every large volume seller I also have been searching for a sustainable part of the online market, something that i could count on.
I started selling very high ticket motorized vehicles which quickly took a down turn by running into high competition with very low profit margins, this turned a profit in the beginning, but as competition grew stronger the margins dropped from 100% down to 20%. We couldn't support happy customers off of this margin and were forced to stop selling.
Now i have changed my online business model, it is a very simple model for anyone to follow.
Rule 1) Be original, sell products that have been and will be around for a long time.
Rule 2) If it the product doesn't earn enough to make you happy and to support the customer after the sale then don't sell it! (there are millions of products out there to sell, you don't have to sell every product which appears good! do a small test by selling a few of a new product and see what the results are, before deciding keeping it in your store.)
Rule 3) Always be adding products! Now especially in these economically uncertain times there are billions of hungry people out there looking for opportunities, if you don't act on it, someone else will! so keep adding new products every day, week, month...
Rule 4) Offer free shipping whenever possible and promote shipping discounts if you can't offer free shipping on smaller priced items.
A little off topic i know, but wanted to share my success formula with a few fellow Canadians!
Cheers,
Leigh Kuhn
oempartsource.com an eBay.ca store