Myths of Wholesale Buying Exposed
Myths of Wholesale Buying Exposed
Myths of Wholesale Buying Exposed
Usually, people look at purchasing and trading wholesale goods as a quick way to get rich. Sellers invest just a little but make good profits out from it. A few months after the import business is started, others don't realize what's going on and why things are not going as planned.
Here are the four myths that may be keeping prospective sellers away from their plans:
Myth #1: eBay is the most effective avenue for trading wholesale goods
Yes, eBay is the world's biggest marketplace. Many people have become millionaires through eBay. But you don't really about the downside. So, here goes. Just as there are people who've made themselves wealthy, there are thousands too who struggle each day just to make profit because these thousands of people are selling similar products. Thus, the biggest problem is competitive prices. However, competition is always a part of business. Just like supermarkets and large discount stores that lose items just so they catch the attention of more customers. But for small and new sellers, this is not a good scenario at all.
You can never hide the fact that some of eBay's categories are always full of competition. Categories like electronics, jewelries, designer clothes and computer games pose great dangers for new sellers. It's not an easy road for new sellers to compete against reputable sellers who have already gained customers and have taken advantage of highly competitive prices.
Thus, if your products are classified into the above-mentioned categories or any other highly competitive product categories, it is better for you to look into the less competitive markets like selling newspapers in your area and the like.
You may not be reaching as many audiences like eBay but there's a greater tendency that buyers who look into other means of purchasing goods will pay more than usual. If you still don't want to give up on online sites, then try visiting eBay international sites like eBay UK or eBay Australia and auction sites such as Amazon and UBid. These sites tend to offer higher profit margins in contrast to eBay US. Plus, these sites' population of buyers is also increasing. But an advantage of eBay US though is that high competition paves the way for a good selection of dirt goods that you can sell anywhere else.
Myth #2: Wholesale sources are found online
The Internet does provide good access to plenty of wholesalers. Plus, it's a great opportunity to make initial contacts. But it does not offer access to all wholesalers. If you really want to obtain excellent wholesale prices for your products, then you should look into other sources too. Trade magazines like Closeout News and Wholesale Merchandise and others can be a good help. Since these sources only have a few people looking for stocks, you'll definitely have your own chance of success.
Establishing a good relationship will not only help you obtain better prices. Since you've already know your supplier, you are self-assured that things will go right the moment you have your orders placed.
Myth #3: Pricing research is pointless time consuming
Pricing research is important to make a business succeed. Here are two reasons why:
1. Before you start, it is an important step to know what the average resale price is for your item. A few popular items like DVDs, electronics and computer games have very low profit margins. Yet, a lot of sellers notice its popularity and so they immediately take advantage of it. An inundated market only entails a lot of work. If huge, reputable sellers get in the whole scenario, competing is really hard. However, you need to research so you'll know what's really going on. Check on auction sites. Browse classified ads and other materials that will help you visualize the whole picture.
You need to look into your false presumptions. A lot of people presume that wholesale stocks only entail a little investment but enormous profits. So, you really need to research so you can see the realities of business.
Myth #4: Niche items can be purchased from individual wholesalers.
Sellers dream of a niche item that he/she alone will be selling at the best prices. But if you think you can find wholesaler suppliers of niche items by doing a quick online search, then you are wrong. Niche products are really difficult to find since not everyone wants them. So, it may really take time finding one because niche items can not just be purchased from individual wholesalers. You have to contact large wholesalers and maybe the manufacturer themselves as well.
It's really not easy as you think it is. However, if you've made your market research efficiently and you've found yourself a good supplier, then you will reap what you sow!
If you would like free access to a video training series on
importing from china then check out
http://www.ChinaImportFormula.com.au
Brendan Elias and Alex Ryan have been teaching business owners
how to start their own importing business from scratch, and
import goods without the headache or hassle.
Brendan has been featured in the Sydney Morning Herald, Live
National TV on the Kerrie Ann Show, Financial Review and many
more.
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