Electronic products - dropshipper needed!

Free Member
digitalimperium
Posts: 2
Joined: 06 Sep 10
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6 Sep 10 07:54:35 pm
At this moment I am developing a webshop where I want to list selected products from a dropshipper. It's hard for me to choose the right dropshipper who can deliver best in my area and have reliable prices.

Also I have seen people mentioning ebay for presenting the products. I am planning to do it in my own website. Is ebay more beneficial to start with and how can I compete with powersellers?

If anyone can list the best options for dropshippers of electronics, I would be glad.

oh.. and I live in the Netherlands.

Full Member
satya
Posts: 1778
Joined: 02 Jun 09
Karma: 
6 Sep 10 10:39:47 pm
Hi DigitalImperium,

Electronics is actually the most fiercely competitive category on eBay. The electronics industry has always run on very low margins from wholesalers to end users and marketplaces like eBay have only tightened the margins even further. You'll find that most electronics sell at the wholesale price or below wholesale on eBay. That's how intense the competition is.

If you do wish to stick with the electronics industry, then here is what we suggest -

Buy in large quantities. Drop shipping is a great way to start a business but in the long run, you may need to buy a significant proportion of your inventory in bulk to ensure that you get maximum profit margins on each item that you sell. You can either use liquidation suppliers to get bulk lots at prices well below wholesale or purchase from wholesalers in very large quantities to drive the wholesale price down. Then you’ll stand a fighting chance of competing with the big boys.

Increase your feedback and get powerseller status BEFORE entering the electronics market. This will give you more visibility in the search.

Sell on your own website. It levels the playing field somewhat, and means that you don’t have to compete on price alone. Customers don’t tend to be so bargain-oriented as your typical eBay buyer and will probably value professional customer service and fast shipping more than taking a chance on a dirt-cheap eBay auction. However, you’ve still got to be competitive against the likes of WalMart, meaning that buying in large quantities or liquidation will continue to be necessary.

Add third-party extras and up-sells to your orders. These will help you bump up your margins to a much more acceptable level. If the buyer thinks they are getting a great deal on the main item, then they'd probably be willing to pay a bit more overall to get the extras. For example, you might sell an iPod package that includes accessories with higher profit margins such as speakers, skins and car chargers.

Better still - consider selling accessories for electronics rather than electronics themselves. Power cords, mobile phone and iPod accessories, computer components, radio and communications equipment and accessories, or even refurbished electronics can produce healthy margins and don’t require the fat wallet which consoles, iPods and phones demand. Accessories are very popular, have less competition, cost less to ship and have much greater margins.

Hope that helps.


Satya
Customer Support
SaleHoo Group Limited
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Free Member
digitalimperium
Posts: 2
Joined: 06 Sep 10
Karma: 
6 Sep 10 10:56:32 pm
I'll be happy to help you out, DigitalImperium. I'll get back to you shortly.


Thank you

Full Member
satya
Posts: 1778
Joined: 02 Jun 09
Karma: 
6 Sep 10 11:12:54 pm
Here are some related posts you might be interested in reading -

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Many of the suppliers mentioned can ship worldwide. Remember to add your review on the supplier profile page should you use any of the suppliers listed. Thanks!


Satya
Customer Support
SaleHoo Group Limited
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