Dropshipping on eBay offers serious profit potential, but the market moves fast, and competition is fierce. The secret to staying ahead comes down to two words: product research. Knowing what sells, why it sells, and how to position your listings is the difference between stagnant sales and a thriving business.
With 2 billion active listings on eBay, standing out in the crowd is no easy feat. Sellers who use tools like eBay Terapeak gain insights into market trends, pricing strategies, and demand—giving them an edge in an ever-changing marketplace.
Think of eBay Terapeak as your research assistant. It digs through historical sales data to reveal high-demand products, competitive pricing strategies, and emerging trends. Let’s break down how this powerful tool works and how you can use it to build a smarter, more profitable dropshipping business.
What is eBay Terapeak?
eBay Terapeak (now known as Product Research and Sourcing Insights after a May 2024 rebrand) is a powerful analytics tool designed to help sellers uncover data-driven insights about the eBay marketplace. It’s a prime example of how eBay uses AI and machine learning to enhance the user experience.
For dropshippers and agencies managing client stores, it’s an essential resource for staying competitive. By analyzing years of sales data, eBay Terapeak provides critical information on what products are selling, how much they’re selling for, and which categories are trending.
Without this product research, sellers risk investing time and resources into listings that don’t perform. Terapeak’s eBay insights help reduce risks, improve profit margins, and save valuable time sellers might otherwise spend on trial-and-error research.
ebay dropshippers benefit from Terapeak by identifying high-demand products and setting optimal prices, while agencies use it to manage client inventories more effectively. Leveraging its data-driven insights helps sellers refine their strategies, focus on high-performing products, and achieve consistent growth in their dropshipping business.
The Product Research tool is available to any eBay seller. Sourcing Insights is available to Business sellers with a Basic or higher eBay Store subscription—and it’s a compelling value for the insights it offers.
Key insights you’ll get with eBay Terapeak
- Historical sales data to spot product trends.
- Pricing insights to set competitive but profitable price points.
- Seasonal demand patterns to plan inventory ahead of time.
- Market competition analysis to identify gaps and opportunities, ideal for both paid and organic dropshipping.
- Insights into top-performing categories to focus your efforts.
- Data on regional sales trends to optimize for specific markets.
- Information on average shipping costs to refine pricing strategies.
Product research vs. sourcing insights: the differences in eBay Terapeak tools
To succeed in dropshipping, you need a clear view of what the market wants and how to source it. eBay Terapeak’s Product Research and Sourcing Insights tools work together to help you navigate demand and supply with precision and confidence. Here’s how:
Product Research: What is it, and how does it work?
Product Research in Terapeak is all about analyzing historical eBay data to understand:
- Which products are in demand.
- How they’re priced.
- How they perform over time.
Product Research helps sellers spot trends and make informed decisions about what to list in their eBay stores. Whether you’re evaluating seasonal items or gauging the competitiveness of a seasonal niche, Product Research delivers actionable insights that help you optimize your sales strategy on eBay.
Sourcing Insights: What is it, and how does it work?
Sourcing Insights helps you pinpoint hot-selling items by analyzing what’s already flying off the virtual shelves. See what’s in demand, what’s scarce, and where you can swoop in with a competitive offer.
Plus, you can drill down into specific data:
- Identify niches with high buyer interest but low product saturation.
- See how demand fluctuates over time and anticipate seasonal spikes.
- Identify booming categories and the winning products within them.
How Product Research and Sourcing Insights Work Together
Product Research guides you by revealing market trends, pricing, and keywords for listing optimization. Sourcing Insights then informs your sourcing strategy by providing data on categories with high demand and low supply.
Using both tools in tandem lets sellers create a seamless workflow from identifying opportunities to executing their strategies. Together, these insights reduce risks, increase profitability, and ensure dropshipping businesses are prepared to scale efficiently.
A step-by-step guide to using eBay Terapeak to find hot products
1. Access and navigate eBay Terapeak
Log in to your eBay Seller Hub and navigate to the “Research” tab. Under this section, you’ll find Product Research. Remember, business sellers with a Basic Store subscription or above can also access Sourcing Insights as part of their subscription.
If you’re new to Terapeak’s tools, take a few minutes to explore the interface. Understanding the layout will help you maximize its potential and ensure you can quickly locate the features you’ll use most often.
2. Start with product research
The Product Research tool is your gateway to uncovering valuable insights about the eBay marketplace. You can use this data to validate your product ideas and gauge their potential profitability.
Begin by entering keywords, product names, or categories in the search bar. If you’re considering selling fitness trackers, input relevant terms to analyze sales trends and review essential product metrics like average selling prices and sell-through rates.
3. Apply filters to refine results
Once you’ve generated a search, you can use the filters to narrow your results. Filter options include price range, item condition (new or used), and location.
For example, if your target audience prefers new items under $50, set those parameters to focus on the most relevant products. Filters save time and help you zero in on items that align with your business strategy.
4. Analyze competitor listings
Studying competitor listings can provide a wealth of information. Look at the top-performing sellers in your niche and analyze their pricing, shipping options, and descriptions.
If competitors offer free shipping on similar items, consider how you can match or exceed their value proposition or other ways you can emulate the top sellers. This step helps you identify potential gaps in the market and craft listings that stand out.
5. Conduct market research
Terapeak’s tools allow you to explore broader market trends and seasonal patterns. For instance, during the holiday season, categories like toys or electronics see a surge in demand. Use this feature to strategically plan your inventory to stock trending products at the right time and capitalize on increased demand.
6. Utilize sourcing insights
Switch over to Sourcing Insights to analyze the sourcing landscape for your identified products. As we discussed above, this tool gives you a clear view of top-performing categories where demand is high and supply is low—the sweet spot for maximum profitability. You can track demand over time and anticipate seasonal shifts.
Let’s say you’re dropshipping on eBay, and you’ve noticed a surge in searches for ‘portable dog water bottles.’ You can validate your hunch with Sourcing Insights by researching the demand for products within this subcategory. You’ll be able to confirm whether demand is growing as supply is staying low—then you’ll know if you’re onto a winner.
7. Monitor sales data over time
Historical sales data is invaluable for understanding long-term product performance. Track items you’re considering to identify patterns, such as seasonal spikes or consistent growth.
For example, those gardening tools you’re selling might peak in spring, and knowing this will allow you to time your listings to maximize sales. Regular monitoring ensures that your products are always aligned with market trends by selling just the right items at the right time.
8. Optimize your listings
Use the insights you’ve gathered to create compelling, data-backed listings. You’ll want to highlight the features that matter most to buyers, such as durability or unique design, and set competitive prices based on your research. You also might want to match engaging listing features offered by your competitors, such as use case images or a product tour.
In practice, you might find that your analysis shows that free shipping boosts conversions, so you can adjust your shipping strategy to match. Regularly revisit and refine your listings to stay ahead of shifting market dynamics.
9. Save, organize, and analyze search data
Take advantage of Terapeak’s save feature to bookmark valuable searches and results. It allows you to revisit key data points without having to re-run queries.
Additionally, you can export data for deeper analysis using tools like Excel or Google Sheets. As an example, if you’re tracking seasonal demand for outdoor gear, exporting the data can help you spot patterns and plan inventory months in advance.
This combined approach ensures you consistently track and leverage your findings to make effective, data-driven choices.
10. Test products in small batches
Let’s say you found what you think will be a winning product on eBay, such as the latest water-efficient appliance. However, before committing to an extensive inventory order, use the insights from Terapeak to test products with small-scale orders. That way, you can safely gauge demand and refine your listings without taking a significant financial risk.
Suppose a trending item like the latest smart home accessory performs well in a trial run. In that case, you can confidently scale up your inventory to meet demand—and if it doesn’t, you’ve saved yourself significant resources and effort.
Scale your eBay dropshipping business with Yaballe
eBay Terapeak’s Product Research and Sourcing Insights tools offer deep insights into the marketplace by helping you understand what products to sell, when to sell them, and at what price. Following these steps turns eBay Terapeak into a powerful ally for finding hot products and building a successful dropshipping business.
Product research is vital to ensuring your business stays ahead in the competitive dropshipping world, but it’s only one part of the equation. Yaballe complements this approach by automating and scaling the tasks of running an eBay dropshipping business.
The Yaballe platform provides essential insights into pricing and product availability by scanning millions of items every hour. Yaballe also offers bulk listing support with an auto-listing feature that flags risky products and suppliers, plus a VeRo scanner to help ensure compliance with eBay’s policies.
Yaballe empowers eBay sellers to dropship with confidence, knowing their operations are optimized and protected. While Terapeak provides the market insights you need to make informed decisions, using Yaballe ensures those decisions translate into efficient and effective store management.
Request a demo to experience how Yaballe simplifies, optimizes, and scales your eBay dropshipping business.
