What is it that separates the power sellers on eBay from the legions of, let's call them, not power sellers? They do their homework! Doing just a little bit of eBay market research upfront is likely the only thing you need to take your auction business to the next level.

Probably more important than finding out what's hot on eBay now, is spotting the developing trends. The hidden niches with untapped potential for high profit. It doesn't make sense to jump into an already crowded market for a particular product or niche. The competition will be high and the margins low. 

Successful sellers also know this. It's not good enough to know what to sell and when to sell it, but also what not to sell. You have probably already figured out where I'm going, and that's eBay Pulse. It's where you find the most popular searches in 30 some categories, along with the biggest movers in those categories. At the time of this writing, the most popular searches are variations of iPhone, iPod, Wii and PS3. No surprise there. And it doesn't take a genius to figure out there would be immense competition for those items. Not where I recommend budding power sellers try to compete. I can tell you from experience there are next to zero margins in electronics.

Start your eBay market research at the pulse in some different categories. Yes, things other than electronics sell quite well. The key is to then drill down into the listings and see what sellers are currently offering. When you see a disconnect between what buyers are searching for and what sellers are offering, bingo, there's your opportunity. This is one way power sellers are always out in front of the competition while the margins are good.

Another great tool in power user's eBay market research arsenal is the want it now section. Simply put, it's where buyers post messages to millions of sellers on what they're looking for, and where sellers can search those posts.