Wholesale Products And Online Auction Myths
Four Myths Around Wholesale
Buying wholesale products and then selling them online is often thought as a way to get rich quick where huge profits are to be made doing very little work and spending very little capital, and this leads to most people giving up there online selling dream when they discover this is simply not true.
Out of all the myths about selling online there are four particular ones which lead online sellers astray and in this article I hope to dispel these myths once and for all.
Myth No 1: The Best Place To Sell Your Wholesale Products Is eBay
This myth is very popular and yes eBay has the biggest marketplace in the world and has made many people into millionaires. But for every eBayer who makes it big there are thousands that don’t. The reason for this is competition, say your selling a product for so much on eBay, well there will always be hundreds of other people selling the same product for less, that’s just the way it goes with eBay and any retail store.
All of the big stores including supermarkets run at a loss on certain items just to attract more customers, but a smaller outlet or small seller cannot afford to do this.
eBay can be far too competitive in many categories which include designer clothing, computer games and DVDs and anything electronic would be considered dangerous territory for new eBay sellers. The established eBay power sellers who already corner these markets have a huge following of customers who trust and know them and they can sell items at very competitive prices.
So if you have items to sale which fall into these categories I would suggest selling them through alternative market places to eBay, such as Craigslist or your own local classified ads papers or even alternative auction sites like cqout.com and ebid.com, or for a long term plan and one which can be very profitable indeed would be to start your own eCommerce website.
Although you won’t have the audience that eBay commands, buyers in these places tend to pay more for products which gives you a better return on your investment.
Although You may want to consider selling through eBay international; if you speak a foreign language you could sell your items to Spain, Germany or France where the competition is usually a lot lower than the USA or the UK.
Myth No 2: Sourcing Wholesale Products Online Is Easy
Yes the Internet is a great place to research new suppliers but it is definitely not the best place to source new suppliers, what I mean by that is the best wholesale suppliers will not advertise their business online, they simply do not need to. But once you have found a supplier through other means the Internet then becomes a great place to find out more information on them and to see if they are reputable enough to deal with.
Although you will find wholesale suppliers online, these tend to be middle men and high priced drop shippers and both of these are best avoided. The best places to source wholesale suppliers are trade magazines such as Closeout News and Wholesale Merchandise and trade shows, you could also visit wholesale forums and join in with the conversations, you can find some great wholesalers this way.
Once you have found a seller I strongly recommend you strike up a good working relationship with them, the personal touch will go a long way to getting you the best prices so don’t just send emails, phone them when you need a quote or even go to them in person and get to know them.
When you spend time getting to know your supplier it means you will be in a better position than your competition because your supplier knows you and will give you the best deals, plus you will feel more confident that each transaction will go smoothly without problems.
Myth No 3: Researching Prices Is a Waste of Time
Everyone agrees that all market research is important but not everyone does it?
Most people starting out think they know what a product is worth wholesale and how much they can sell it for, but how can this be true when product pricing is constantly in flux. Successful businesses will do the research because they know it is essential to their success, they also know its time consuming and boring but they will do it never the less.
It’s extremely important to understand the resale value of a product before you ever get started thinking about selling it. Popular items such as DVDs and computer games tend to have a very low profit margin so you need to understand this before you buy.
But despite this eBay sellers just see how popular these products are and jump in head first. When it comes to overly saturated markets such as DVDs in my opinion it’s just not worth the time and effort you put in for the small return you make.
Throw big established sellers into the mix and it’s almost impossible to compete. But you are not going to know this until you do the research first. So visit auction sites read classified ads and any material you can get your hands on until you have a good idea of exactly what you’re going to get.
Another good reason for research is that most people’s preconceptions of value are way of the mark. A lot of auction sellers think wholesale means a fifth off the retail value, but this is just not correct.
A lot of would be sellers are under the impression that if they buy a container load of stock they will get it for peanuts, but this is just not the case. Whilst you can find some fantastic deals when buying in bulk you will never pay two hundred dollars for a bulk lot worth five thousand dollars.
Sorry to be the bearer of bad news but buying wholesale does not mean great profits for little investment. But if you do the research you can find good deals where you will make good returns, just don’t expect miracles.
Myth No 4: Niche Items Are Easy To Find Online
The dream of many sellers is to find that one niche item that no one else is selling and get it at a competitive rate. However you will be mistaken if you think you can just do a google search for these items and hey presto one turns up.
To spell it out for these sellers Niche Products Are Hard to Find!!!
The reason for this is because they are a niche product and are not wanted by the vast majority of people, so finding a supplier tends to be very difficult at times. You will find individual wholesalers do not stock these items so it would be wise to approach large wholesalers and manufacturers directly.
If you do the research and you don’t expect something for nothing then you will find reputable wholesalers who will be willing to deal with you, and you will be able to make a good income online. But just bear in mind a willingness to invest time and money will pay off but a lazy and negative approach will not
It’ll be a lot harder than you think, but if you’ve done your market research effectively and you take the time to find a good supplier, then your hard work will pay off.