Surely there are many other methods that people work with; however, the number of sellers who succeed using the big numbers rule strategy is far more than those who use different methods.
What is the Big Numbers Rule Strategy?
It is a strategy where eBay sellers don’t spend time optimizing every product they upload; instead, they list thousands of products, and this is why it’s called “The Big Numbers”
After uploading many products to your store, then you start looking at the ones that made the first sale, and from there, you can begin optimizing and improving the listing.
To start using this method, the optimal amount of listings your eBay store should have is between 8000 and 10000 listings; small accounts are not concerned with this method.
1. Why the Big Number Rule Strategy Works on Big Stores Only?
To understand why the account should have this number of listings and why small accounts shouldn’t apply this strategy, we will be using this chart to compare and explain the reasons behind this requirement.
As you can see, we have 4 eBay store packages: Starter, Basic, Premium, and Anchor.
If you look at the prices of the plans, you will notice that as the package increases, the costs also increase, and this is why most dropshippers are afraid to grow to the size of 10000 listings, they think about the expenses that they will have to pay.
2. An Example of The Big Numbers Rule Strategy
Let’s take the Anchor store package; for example, eBay will cost 300$/mo, and AutoDS will cost 328$/mo+8$(orders processor), which is 636$ a month, and of course, that is expensive for a store that is not profitable.
However, you should know that it is not hard to become profitable with the Anchor package. Because if you calculate the price per listing in all the packages, you will notice that it drops down as you move to a bigger plan with higher free insertion fees listings.
To make things clear, we calculated the price for every 1000 listings in every package.
As we can see, the cost of 1 thousand listings decreases when you upgrade the plan.
Comparing the Cost of 1000 Listings
In order to find out how much you save in every 1000 listings when you move to a bigger package, try this calculation for example:
To calculate the difference between the Anchor package and the Starter package, take the cost of 1000 listings in the Anchor package and divide it by the price of 1000 listings in the Starter package.
63.6/210=0.30, this means that the price for 1000 listings in the Anchor package is 30% of the cost of 1000 listings in the Starter package, which also means that by moving from the Starter package to the Anchor package, you will be saving 70% in every 1000 listings.
Minimum Sales to Cover the Store Expenses
Now let’s see how many sales we need to cover the store package expenses. We are still comparing the Starter and the Anchor store packages.
So if we say that the sale price is $21, which is the average sale price on AutoDS, and the profit percentage is 10% which is 2.1$ in every sale; that means that we need 100 sales of 21$ which is $210 to cover the fees for 1000 listings.
That seems so hard when compared to the Anchor store package in which we need only 30 sales of 21$ with a 10% profit to cover the costs for 1000 listings.
Now think of it like this, the chances of making sales when we list thousands of products are much higher than when we list few products.
If you follow this strategy, list many products, delete bad sellers, upload bestsellers from different suppliers, and optimize listings that made sales, you certainly will be able to make at least one sale a day in every 1000 listings.
If you have 10000 products, you can easily make at least ten sales a day, and with only this amount of daily sales, you can cover your fees and still have a high net profit.
We think that this is the best method that you can use to make a lot of consistent sales, you only have to keep uploading new products, removing unsuccessful ones, optimizing and expanding the products that made sales.
We are happy to share this strategy with you, and we hope that you liked this article.