Is the dvd market saturated on Ebay?

01 August 2007

Question: Thanks for the info. Very impressive. I keep reading the the DVD market is getting saturated on Ebay. Is that true or can someone make a decent living doing this yet through the distributors you listed?

I frequently get emails from new sellers asking, "Is there room for me to compete and be profitable selling cds and/or dvds on ebay?"

There is a lot of worry that the market maybe to saturated for a new seller to be profitable selling dvds on ebay. If the market is truely saturated, it is only evidence that selling dvds on ebay is a profitable niche. If it weren't, there wouldn't be so many sellers setting up shop.

In my opinion, a saturated market will correct itself. Once prices are pushed so low that sellers can no longer make a profit, you'll see a max exodous of sellers moving into other niches or giving up ebay for another venture.

I believe the dvd market on ebay is still strong. In March 2007, there were nearly 11 millon dollars of dvds sold on ebay. This only includes dvds sold individually and doesn't count large wholesale lots offered on the site. This number will only increase as Christmas approaches.

Another encouraging example is a seller named Moviemarz. It is the classic David and Goliath story. For many years, a seller named Glacierbaydvd was the top dvd seller on ebay. This seller's business was featured in books, auction sites, magazines, and newspapers. He had an ebay account rep dedicated to his business and even boasts he dined with Ebay CEO Meg Whitman. I didn't include a link to Glacierbaydvd because the ebay account no longer exists.

In May of 2004, Moviemarz setup a new ebay account. This new seller with no prior dvd sales and no feedback soon proved he was a force to be reckoned with. Very quickly, Glacierbaydvd began seeing a drop in sales. This seller went from selling an average of 22,000 dvds a month to less than 7,000. After more than a year of hanging on it became clear glacierbaydvd was not going to make it.

This seller's feedback page quickly filled up with negative feedback, because they were no longer able to fulfill orders. It didn't take long before ebay suspended this seller. Today, Moviemarz has over 700,000 positive feedback proving a new seller can be profitable and compete with the big sellers.

Good Luck,

Brent Crouch

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