eBay's corporate blogger announced a new program that provides information to top-rated eBay sellers about specific inventory that is in high demand and low supply. Richard Brewer-Hay wrote, "Essentially, by providing inventory that buyers want, participating sellers have the opportunity to increase conversion rates and sales while helping fill eBay's inventory gaps."

eBay In Demand, as the program is called, will be available only to top-rated PowerSellers. eBay opened the program already to about 6,000 beta users through ChannelAdvisor, a third-party vendor in which eBay has invested. According to Brewer-Hay, about 60,000 sellers qualify for the program, which requires a minimum 30-day Detailed Seller Rating (DSR) of 4.8 and above. Over 700 products will be displayed on the site at the time of launch later next month.

The eBay In Demand program will cover the following categories: Home & Garden; Sporting Goods; Clothing, Shoes & Accessories; Media; Toys; Consumer Electronics/Tech. eBay doesn't reveal how it determines which items to show in eBay In Demand, stating it is a "result of an analysis of inventory on the site."

eBay can provide data on whether a product is in short supply on the site, but the real question is how the tool factors in demand for items. For example, eBay could analyze keyword searches conducted by visitors to the site to gauge demand - even though that would not give an indication of price-point. But eBay won't confirm its methodology in identifying demand, not even to ChannelAdvisor. Clearly it's in eBay's best interest to encourage sellers to list items that help it broaden its selection (also helping its advertising business by having more listing content).

As eBay brings on more high-volume Diamond PowerSellers through ChannelAdvisor, the eBay In Demand tool gives these sellers greater insight into eBay inventory opportunities. Interestingly, ChannelAdvisor uses Lego as an example to show how the program works. According to an AuctionBytes source, ChannelAdvisor is bringing Lego into eBay's Special Diamond PowerSeller program next year.

ChannelAdvisor pointed out a flaw in the tool: eBay In Demand showed there were zero listings of a particular Lego item, when there are actually 29 items available on eBay (core and Stores).

But as any experienced seller knows, another potential downside of such a tool is that it could result in an oversupply of the items as sellers all rush to list those low-supply items.

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