Understanding the climate and weather conditions in a geographical location can help you brainstorm for products to sell to that market. You wouldn't set up a snowboarding shop in Key West, Florida, right? We can apply this logic to selling on eBay UK.
Selling on eBay UK has been the latest trend with eBay sellers who are seeking new ways to make money on eBay. We have so many products here in the USA that are not available or affordable in Europe. You can set up a store on eBay UK and sell everyday items from Walmart, grocery stores, and Target. I've been doing it for 2 1/2 years and it is quite a lucrative business model.
So let's talk about lip balm and London. The weather in many parts of the United Kingdom is damp because the UK is an island. Some parts are wetter than others. Because of this damp climate, many people suffer from chapped lips or lip infections, so it is an ongoing problem. Many of our specialty lip products are not available in the UK, and stores like Walmart, Target, and even Amazon sellers do not ship internationally. This is where you can find a niche as an eBay seller.
Some of my best selling lip products have been Aveeno lip balm, Abreva, Blistex, Neosporin lip care, Neutrogena lip balm, Lip Smackers, Burt's Bees, Zilactin, Chapstick, Carmex, Releev, and Nivea. Medicated lip balms, cold sore treatments, and fever blister products do the best.
The great thing about selling on eBay UK is that there is room for everyone. It would be impossible for any one seller to offer everything in WalMart or Target because different products are found in different regions of the country, and you can present your item in different ways. Sell a lot of 3, 4, or 6. Offer free shipping. Add a free gift. Offer a mixed lot of lip products with different SPFs. Be creative and invent your own offering.
Update: In 2011 I switched over to selling consumables on Amazon. The same principles apply about understanding your customers.