Ebay and Internet E-Commerce Site

      Drop Shipping and Wholesale Buying Report

By Dennis Estelle
owner of  www.mountain-websites.com

Sending Small Business to the Top

There are dozens of offers floating around the web on this subject.  The problem usually is that the information is completely out of date, or simply a waste of money.

I’ve done my homework and interviewed ebay powersellers down to ebay newbies.  I’ve also been in contact with dozen of internet ecommerce site operators on a regular basis.  According to our research, the listed wholesalers are currently being used by many active retailers on ebay and on the internet.

I’ve started up and personally operated many ebay stores through the years.  I’ve been operating Internet ecommerce sites since the mid 90’s.  I’ve been directly involved in the day to day operation of some of the most successful retail car audio sites on the web.  So as you can see, I’m more then qualified to offer some advice on this subject.

First, something that many might not appreciate is the fact that ANYTHING CAN BE PURCHASED AT WHOLESALE.  You only have to find the correct source for your product.

Misleading Terms 

There also is a very misleading way in which many businesses present their services today.  They conveniently “miss label” their particular business category.  There is a world of difference between a REAL wholesaler and drop shipper. 

Let’s clear up a cause of confusion that exists today.

 The wholesaler is the business who in most cases, buys directly from the source or manufacturer of the product.  The only way to get a better deal then from a REAL wholesaler is to be able to purchase direct from the person or company who produces the product in question.

 Unfortunately, this is usually impossible for an average retailer to do.  Personally I’ve been involved with a large car audio company for years.  I’m quite familiar with the day to day dealings with suppliers.  Purchasing from the manufacturer provides the very best pricing imaginable but it also requires a sizable investment.  Unless you want to go through the act of getting authorized by the manufacturer for their specific product and you have one large empty garage, not to mention one large bankroll, this really isn’t an option for the vast majority of retailers.  Another point seldom mentioned is most manufacturers do not really view an internet store front or especially an ebay store as a legitimate business.  You would have to provide a real brick and mortar outlet for them to even speak to you.  But don’t dismay, I remember many anxious moments of looking at a pallet full of last year’s model radios and having to sell them off at half of what we paid for them.  Not a happy situation at all.

 The drop shipper is a company who actually will ship your product to your customer for you.  You don’t have to make any advance purchases, no pallets of products, just pick up the phone and submit the order when ready.  There is a huge demand for this today largely due to the explosion of selling on the internet.  In the business I mentioned earlier, it was great to fax over an order to a drop shipper knowing you already had the cash in hand so to speak.  No tying up money in inventory, no making huge buys, just a job for the book keeper.

 We were constantly being asked to drop ship products for other online retailers in car audio.  This can prove to be quite a profitable setup if you are so inclined but you have to enter the ranks of a “stocking” distributor for a manufacturer before this really is feasible as a profitable operation. 

 For clarity sake, all wholesalers are not drop shippers.  But all so-called drop shippers are not really Drop Shipping today.

 Who really is the Drop Shipper?

Now this is where there is just a bit of misrepresentation on the part of some large businesses today. 

You will find a few of the businesses listed in this report promote themselves as drop shippers.  In reality they are acting as a middleman between you, the retailer and the real drop shipper.  I’m not saying this is bad at all.  Just be aware that this has to cut into your profits of every sale that goes through their system.

 This might be a favorable setup when one is just starting out.  These businesses take the hassle out of setting up accounts with 10 different drop shippers.  It can be a real service when viewed from that perspective.  Another real plus is that some of these companies also handle customer service for you.  Questions, returns. etc.  You just have to figure that into your cost of doing business.

 Just a friendly warning here.  Although our information was verified at the date of publication, things change rapidly on the world wide web.

 Do your homework here.  I would suggest researching the products and product types you are interested in selling.  Check the prices carefully.  It seems like 90% of the ebay stores are selling the same products.  This in itself is not bad.  Remember there are over 86 Million registered users on ebay.  There is plenty of room for competition as long as your prices are competitive.  I own Mountain-websites.com and we have several business outlines available.  We do have updates to all published information on our site.  Be sure to visit us if you have any questions at all.

 Suggestion:  Look for wholesalers of the products you desire.  Then contact the wholesalers and see if they are willing to drop ship for you.  This guarantees your best profit margin.  You will probably have to “negotiate” with the company rep to overcome any minimum purchase requirements.  Some power sellers do this by offering a commission back to the salesperson for the items purchased and shipped.  Be creative, you would only have to worry about this to get around the original minimum purchase requirement.

 Don’t be afraid to be Creative:  For example, you want to sell WHATEVER BRAND Subwoofers.  This is a big name product where the manufacturer ONLY sells to authorized Bick and Mortar type stores, requiring large regular purchases.  What do you do?

Find a LOCAL dealer who carries the line.  Authorized dealers have to maintain a certain inventory and they have to order in bulk to maintain the low purchase price.  But the fact of the matter is that most dealers are buying tons of junk to fill their storerooms since they cannot keep up sales to qualify for their discounts.  So you personally visit the owner of the store and tell him you’d take a pallet of WHATEVER BRAND subs off his hands.  Don’t you think he’d be happy to pass along his dealer discount to you?  It will help him maintain his dealer status enjoying those discounts so why wouldn’t he.

 This happens every day of the week in the car audio field.  It also can be used in buying big brand watches, certain electronics and certainly in the fields of Big Brand Clothing.  It’s done every day.  But it takes personal effort on your part.  You can’t do this online and it is best done in person.

Solutions for your Home Business
Helping the Little Guy for 2 Decades
http://mountain-websites.com

 All these have been recommended as reliable suppliers for ebay stores.  They are not listed in any particular order.  I suggest visiting them all and I’m sure you find several that can fill your needs.  You will find true wholesalers, drop shippers and importers in the list.  Of course most wholesalers and importers will not drop ship.  You should find the best deals from the latter, only downside is you will have to stock and ship from your location.

 http://www.dropship-business.com

 http://www.worldwidebrands.com/

(ebay friendly and certified by ebay)

 http://masiemay.dropship.hop.clickbank.net
Drop shipping wholesaler system

 http://masiemay.silentsale.hop.clickbank.net   

   Note: this is a book but has proven very helpful to ebayers

  http://masiemay.salehoo.hop.clickbank.net

   Wholesale directory & resources – very popular-many use this with success

   http://www.doba.com/services      Certified by ebay

   http://simplx.com/

   http://www.ec21.com

   http://www.globalsources.com

    http://www.importers.com

    http://www.tradeindia.com

    http://www.fuzing.com

 http://www.nuevomundoonline.com/

   http://www.dnmimports.com/

   http://www.exporters.com/sg

   http://www.uline.com       Shipping Supplies

   http://www.alibaba.com/

http://exportbureau.com/

 http://surplus.net/    This is HOT

 http://fashions.net/

 http://www.wholesale411.com/

 http://www.swissoutpost.com/Help2.cfm?Subject=Wholesale

 http://corp.andale.com/x-research.html

 Research tools that enable you to find average selling prices of an item

 http://masiemay.planetsms.hop.clickbank.net
                           Great setup for wholesale of Digital Products

 Want a Winning Ebay store?

 Think outside the box.  Go directly to High End companies and attempt to get the position of their ONLY Authorized Ebay retailer of their line.  This has proven to be a very successful tactic.  Realistic companies realize people are going to sell their products one way or another.  So they may consider giving sole representation if you promise to work with them.  If you maintain a good presentation, MAP pricing, they’ll give you authorization in many cases.  This will not be acceptable to large companies but it is a great way for small to medium size companies to control their products online.  Trust me, this is an excellent way to earn top margins with ebay sales. 

Additional Point: you probably will not be able to reach top management of most companies to attain authorization.  Here’s the trick: find a local retailer selling your line.  Approach them with your idea.  You offer the internet knowledge and the possibility for them increasing their overall volume without any additional effort on their part.  You might have to give them an additional couple points on buying the product line from them, but then again, you are getting sole authorization for the ebay store. 

Just be sure you get your agreement in writing with the retailer.  When they see how profitable this can be, some might be tempted to attempt it themselves. 

Solutions for your Home Business
Helping the Little Guy for 2 Decades
http://mountain-websites.com

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