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 ...

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

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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.

Product Sourcing for Ebay: Secrets of Successful Ebay Sellers

So, how do you make your fortune on Ebay? Like any other business, you buy low and sell high. Now, if you have heard of Warren Buffet's "value investing" technique, then you will know that you want a margin of safety when you buy goods. This way, you can miss the peak and still make a profit. This principle, too, is the secret of successful Ebay sellers. They have good, cheap, product sourcing for Ebay, which allows them to make a profit very often.

Readding: How To Be Successful With Product Sourcing For Ebay ?

Most successful sellers use one of these four techniques for product sourcing for Ebay:

Set up a workshop in a cheaper location (Mexico, South East Asia and Eastern Europe come to mind) to make their own products, for example low cost jewelry, knitting or furniture.

Buy and re-sell excess inventories of brick and mortar stores that are downsizing. Keep your eyes peeled when you drive around town and you will probably see some warehouse sales. Buy and re-sell inventories of brick and mortar stores that are being liquidated (going out of business). Read your local newspaper and check the section which announces auctions and businesses being liquidated.

Work together with specialized wholesalers for Ebay sellers

Each of the methods above have their advantages and disadvantages. However, the 4th method, wholesalers for Ebay sellers, is probably the lowest risk for people who are new to Ebay selling as a business. So, what are the advantages?

No inventory. For example, look at Amazon - they do not have any warehouse space, or even brick and mortar storefronts. Their storefront only exists on the Internet.

You get a wide range of products to sell.

Life is simpler. You do not need to manufacture the product or ship it. You only need to sell the products, pay for the item and tell your wholesale partner the shipping address.

If your auction is a dud, you do not need to pay for any products - your wholesale dropship supply partner holds the inventory, not you.

Very low cost business - mainly Ebay fees and dropshipping fees.

How does everything work together?

Assuming you are working with savvy wholesalers who specialize in product sourcing for eBay, you can ask them what's hot on Ebay now, and what will be hot next season. They have many years worth of data, and are quite willing to share some of their data mining efforts to help you make a bigger profit. Note that the more you sell, the more they earn.

They will also tell you how much the postage and handling fees are, so that you can factor this into your auction.

You set up your auctions or stores.

Once the product is sold, you pay your wholesaler partner their share of the profits and let them know the shipping address. They will send the product to the buyer.

Rinse and repeat.

Remember the following points when you look for a product sourcing for Ebay partner:

They must provide good quality products. Your good reputation is paramount. Sell crappy products and your customers will complain to Ebay. Your reputation will sink like a rock. And a poor reputation will seriously hurt your business.

They must ship the products quickly and efficiently.

This is the secret of successful Ebay sellers - effective product sourcing for Ebay gives them a reliable and low cost supply of goods to sell.

How To Be Successful With Product Sourcing For Ebay ?

Have you ever bought or sold something on Ebay? What do you think about those people who set up their own home business and sell items on Ebay regularly? Have you ever wondered if you could do this yourself, and how to do it? Did you know that many of these home businesses partner with specialist companies who provide them with their products? This business process is called product sourcing for Ebay, and it works well for many people.

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Does product sourcing for Ebay ensure automatic success? Of course not! Firstly, all business involves risk. There are always setbacks. Regardless of what you sell, regardless of how good those products are, they will not always sell at the same rate every day or week. Some products sell well on some days, but poorly on others. On the other extreme, there are products which sell very well for weeks, then fail to sell for months, before selling well again. Can you live with this kind of uncertainty? Or will you be scared off ?

How good are you at spotting trends? You do not need to hit every trend spot on. As long as you do not miss every trend badly, you will still make a profit. If you correctly forecast what's hot on Ebay for just one out of five projects, you will make a very hansome profit. Spotting trends is a skill which can be learned. With persistence, you will find that your ratio of hits gradually improves. This is what successful Ebay sellers do: they identify the best items to sell on Ebay fast enough to set up a highly profitable wholesale dropship supply situation when the next big wave hits the auction block.

Successful Ebay sellers diversify their portfolio of products. They sell at least two or three different ranges of unrelated products at the same time. With this product sourcing for Ebay strategy, they get more consistent monthly sales. With the right combination of products and dropshipper, e.g. with a music CDs dropshipper and a pet accessories dropshipper, when the music CDs sell poorly, the pet accessories will be selling well. Every month, you will have income. The downside? You need to have better recordkeeping to keep track of what is going on.

Bear in mind that there are many wholesalers for Ebay sellers in the marketplace. Each company is different in what they offer you, with different expectations from you, different levels of support, and different commission structures. Be patient and evaluate a few different companies. Choose only those wholesalers or dropshippers which are suitable for your current level of skill. If you are new to Ebay selling, choose a company which offers more support, even though they pay less commission. Once you have more experience, you can work with a different company which pays more compensation but offers less support.

This is how you can be successful going with product sourcing for Ebay. There are almost no barriers to entry - anyone can do it, but to be successful you need the right personal qualities, the right strategies and the right partners in place. Starts slow, with baby steps, as you discover what works best for you.