Make Money Selling
Monday, May 17th, 2010Make Money Selling
Best eBay Suppliers are Key if you Plan to Make Money Selling on eBay
One of the challenges faced by every eBay seller is locating reliable, low cost product sources. It almost seems that most eBay suppliers don’t sell for prices that offer you a reasonable profit when you resell on eBay. Yet if your goal is to make money selling on eBay what good does losing money do you? The good news is in today’s economic environment there are low cost sources for almost every product imaginable. In this article I will reveal 5 options for eBay suppliers to examine as you work to find great products to sell.
Dropshippers – Many who are just developing plans to sell on eBay instantly think of dropshippers as the best possible option. After all, why not let the dropship company handle everything associated with warehousing, pulling, packing and shipping products for you. That allows you to focus entirely on marketing. It seems like the perfect plan to make money selling on eBay. Even better; the amount of cash required to start an eBay business is reduced since you don’t pay for any products until they have been sold. But in many cases it just isn’t that easy. There are shortcomings to using dropshippers as your eBay suppliers. First, they have overhead to cover, and that means your price for products is typically higher, leaving profit margins tight or even non-existent. Second, some companies continually sell out of products. There you are completing an auction only to find out there are none available from the dropshipper. Dropshipping can work. However, investigate the company carefully. Be sure there is a profit to be made and their delivery performance meets your needs.
Manufacturers – Consider going directly to the manufacturer. Let them become your eBay supplier. Start by locating the manufacturer of the product you are planning to sell. Make direct contact to understand their terms and policies. Make sure you can meet their minimum purchase requirements. Don’t forget to consider where you will store pallets of merchandise should that be required. If you can come to an agreement, buying directly from the manufacturer opens the door to allow you to make money selling on eBay. If the direct manufacturer doesn’t work, many factories around the world are willing to create similar products for you. Just be thorough in your due diligence.
Wholesale Distributors – Many manufacturers do not sell directly themselves. They use wholesale distributors for that purpose. Locate the products you wish to sell on eBay through a wholesale distributor and see what they have to offer. Often the minimum purchase size is smaller. Just be sure you will make a profit on the product. Don’t order pallet loads of something unless you are sure the demand and the eBay selling price are stable.
Refurbishers – Often products that have sold and come back as defective are refurbished and offered for resale at reduced prices. This is sometimes through the manufacturer, and in other cases through distributors or refurbish companies. Selling refurbished products can be a lucrative eBay business. Be sure you understand the guarantees these eBay suppliers offer, and that you are able to pass them on to your buyers. Also be sure to check your purchase prices against eBay selling prices before you get into this business.
Closeout Companies and Liquidations – In today’s economy closeout companies and liquidators offer a great buying opportunity for those who wish to make money selling on eBay. These eBay suppliers purchase huge quantities of products from companies going out of business, making package or product changes or simply reducing their inventory levels. They pay pennies on the dollar for the products they buy. They then pass those savings on to you. Once again be sure you understand the quantities and condition of the products being purchased.
To your eBay success!
About the Author
Find out how you can make money on eBay.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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