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.
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.
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