Showing posts with label 3-Deadly- Traps. Show all posts
Showing posts with label 3-Deadly- Traps. Show all posts

Tuesday, April 15, 2014

Product Sourcing For Ebay: Don't Get Caught In These 3 Deadly Traps

Are you new to product sourcing for Ebay?
While this is an excellent business model, like any business, there are traps which can catch the unwary ...

Read more: Save Money with eBay Promo Codes

When choosing your wholesalers for Ebay sellers, here are some points you need to be aware of:

Coupon Code for eBay
Coupon code for eBay
1. Compensation - Keep in mind that you are running your Ebay business to make money. There are several different compensation programs in the market. The most common model allows you to set your own retail rate: your partner's unit wholesale price for each product plus your own markup.

So the minimum bid you will accept in your auctions is your retail rate. Every time you sell an item, you earn at least your markup. This method is straightforward and easy to track. Some wholesalers operate different compensation models, so remember to double-check the terms and conditions. Make sure you understand the compensation model. Here are some questions you need to ask:

Is payment by check only? Is direct deposit available?

Is there a minimum amount you need to earn before they pay you your commission?

Who handles taxes?

Are you required to make a long term commitment?

2. Sell only what's hot on Ebay - You need to be in tune with the market. To make money right from the start, you need to offer only the best items to sell on Ebay. For example, your music CDs dropshipper needs to offer the latest hits as well as the evergreens and golden oldies. Selling Elvis Presley CDs can make a decent amount of cash every month, but selling the latest chart topping single could net your the same amount in one day! If you need to find a new product sourcing for Ebay partner who offers the hot product, then do so. Don't limit yourself to your trusty pet accessories dropshipper during the Christmas season, find a dropshipper who offers the latest Christmas toys and decorations. Here are some questions to ask yourself before you setup your Ebay shop or auction:

Do you know what is hot this season?

Does this wholesaler offer these items?

Is this model new, or has it been offered the past umpteen years?

3. Shipping and handling - Make sure your partner handles the shipping and handling. Also make sure you pass the postage and handling costs to the customer. One of the main attractions of using a wholesale dropship supply partner is to avoid having to go to the post office yourself. Make sure that your partners directly ship the products from their warehouses within one or two days after the payment is received. Here are the pitfalls to be aware of:

Do you need to maintain any inventory? The answer had better be "No!"

Do you need to pay postage out of your own pocket? You are supposed to pass this cost directly to your customer.

Does your partner charge you any additional administrative costs?

Do you have to pay any storage costs?

If you have to answer "Yes" to any of the 4 questions above, find another vendor!

When picking your partnerships for product sourcing for Ebay, keep these 2 points in mind - minimum costs and maximum simplicity. Otherwise you may as well set up a workshop to produce your own products for sale.