SaleHoo

[foreverlookingup]

My wife and I are relatively new to the internet retail business, only in it 6 months, and we were wondering if anyone could help us with some pricing help. What is a good markup over wholesale to use when reselling? We have our own website we started recently, and we also have an eBay Premium store. It seems to us that you have to use 2 different pricing strategies for each site. It seems that on ebay, we have to keep our prices dirt cheap because there seems to be a lot of sellers happy with making $1.00 over wholsale, or even selling less than we can buy it from the wholesale supplier for. Can someone please help?
Thank you so much..
Blessings on your day..
Dave and Peggy

[Haydee]

Hi Dave and Peggy,

eBay has become an extremely competitive marketplace and this is because wholesalers sell direct to the public through eBay. So if you are competiting with mostly wholesalers, you have to have competitive prices and to do this without losing money, you may either order in really HUGE quantities and direct from the manufacturers or buy liquidation. Buyers tend to pay more in other auction sites or if they're buying from a website so you were right, the pricing strategy should vary between the two sites.

We have made a blog entry about eBay being a wholesale market and you can view it through this link:

** Link Removed: Only Available to Registered Members**

Check this forum post out for some pricing strategies suggested by members:

** Link Removed: Only Available to Registered Members**

I look forward to hearing more from you in the forum.

All the best! :)

[Satya]

Hi Dave and Peggy,

Haydee is right, eBay has become one, if not the most competitive marketplaces online. Plus they have been going through some massive upheavals recently and with the new changes they have introduced, and the fact that there is more competition than ever, it's not as easy to make money as it used to be.

eBay still gets the most traffic of any auction sites, though, and this is an advantage that can't be ignored. Some sellers keep a few items on eBay just to direct traffic to their other stores. The key point to remember is that the internet is in constant flux. You need to work hard to keep tabs on current trends to make maximum profit. If selling on your own website yields better profit margins, then sell on your website. If you find a niche on eBay, sell on eBay. Many sellers sell on 3 or 4 different sites to get the benefit of numerous audiences.

And as Haydee mentioned, you can either order in bulk quantities to drive the wholesale price down, or buy liquidation to get items for pennies on the dollar. This is how some sellers sell their products at prices the same as or lower than wholesale and still make money on eBay.

Good luck with your business! Sing out if there's anything you need.

[impozone]

Thanks for good advice Satya. I learned really fast that there is no way for someone like me that does not buy in thousand to complete with big eBay sellers.

So I have started looking for liquidation sites. However, I have a question. If I buy from a liquidator, do I need to mention that in my product description? Many liquidators say their products are new or self pull (never used).

[Satya]

Hi impozone,

Liquidation is different to other supply methods because you will be dealing with used items as well as new. It takes time to learn how to successfully make money from liquidations - just like with any other supply method. Liquidation stock is made up of excess stock, shelf pulls and returns. This means that when you buy a liquidation pallet, it may include goods in mixed condition and it can be a bit ‘luck of the draw’ as to what you receive. Despite this, liquidation is an incredibly profitable way to source name brand stock.

Unless you inspect a liquidation pallet yourself, you won't know exactly whether it contains any used items. It would be great if you can physically view the stock before buying. If this is not possible due to distance, try to ask for a full inventory that includes item condition.

If the item you're selling has been worn or used once or twice, it is very important that you note this in your auction listing so that your customer is not taken by surprise. Some buyers may find this off-putting but try to explain the benefits to your customer – they are receiving brand name and designer items at a much more affordable price than they could otherwise get - for example.

Did I answer your question? Let us know if there is anything further you would like to know and we will be happy to help. All the best!