Hello, I'm pretty new here and I hope I can get some help :)
I'm looking for video game closeouts perferably for Wii and PS3.. I understand you will not be making a lot of money from Video Game dropshipping. However, where would I be able to find closeout, overstock video games in bulk from? I have seen big suppliers on ebay selling retail games for $10 less than walmart. For example: wii fit cost in canada is $25 plus 13% tax in Ontario. the seller was selling it for $14 + 4 shipping cost.
How is this even possible? I'm not that new to selling online, I've been looking for suppliers and researching this area for about a year now and still have no luck with it.
Any help with video game wholesalers or closeouts would be appreciated. Thanks!
I just want to clarify the difference between closeouts and drop shipping so there is no misunderstanding among our members in general. Closeout products are those available through liquidation avenues. For numerous reasons, a retailer will unload a stock pile of games that are surplus to their current requirements, but the purchaser will be required to purchase in MOQ amounts.
A drop shipper will offer their products on a per unit basis, and the games should be guaranteed to be new, where as you need to clarify what condition the stock would be in if purchased through liquidation.
You can find liquidated video games, however being such as strong market there is usually an exceptionally good reason for the stock to have been liquidated in the first place. The most common, very slow moving stock, which means that if it was moving at a snails pace on a retailers shelf, the chances are it will move at the same pace online, if not slower!
Biggest Pros: Liquidation - Price
Biggest Cons: Liquidation - stock variety, condition and MOQ
Biggest Pros: Drop Shipping - Low volume purchasing, range availability
Biggest Cons: Drop Shipping - Price (very minimum margin, if any at all)
The absolute best price for new and current games is available by dealing through a major distributor, not a wholesaler as such. Easier said than done, distributors won't give you the time of day if you're not coming to them with extremely deep pockets, because to get the best price, you need to be buying in SERIOUSLY big volume.
Wholesalers will be the next best value option for new and current games. Typically, these suppliers are buying straight from the distributors, and can therefore provide you with the best price on low volume purchasing. Most wholesalers start their MOQ amounts off at around 100 games, but that does vary of course.
Quite a few wholesalers supply by dollar volume now, meaning that once you spend X amount of dollars, you move up to the next tier in purchasing price discount, despite the amount of games that involves. General rule of thumb for this structure is first tier purchase of around 2k worth, but does vary.
Rule of thumb with this type of product is the same as any product really. The more you purchase, the better your price, the more chance you have of not just competing, but of making decent margin.
My own opinion, the only way to compete in the games market, especially through an avenue such as eBay, is to be buying in large volume. Even if not enough to get it straight from a distributor themselves, buy from a wholesaler in the largest volume possible to secure the best price possible.
