Why are products more expensive on SaleHoo than on E-bay?

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glampam
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Joined: 15 Jul 11
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23 Jul 11 01:33:15 pm
I really don't understand... Why dropshippers etc.. is more expensive through SaleHoo then it is om e-bay???
Am I doing something wrong here? Please! Can someone help me get on right track???

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fm1234
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23 Jul 11 09:37:48 pm
It is not uncommon to see some extremely low prices on eBay, especially in certain high-demand markets like electronics. Most dropshippers you'll find, even in Salehoo, are also selling on eBay, so the odds of being able to compete with eBay prices using dropshippers or low/no minimum wholesalers is pretty remote if you're hitting a competitive market.

That said, whatever products you're researching, be sure you use eBay's advanced search options to specify recently-closed auctions only. That will show both sold and unsold closed auctions, which can give you a very good idea of for what customers are looking in terms of price and other features (it's not always price, as can be evidenced by sellers who seem to consistently sell for higher than average prices in their niches.) I point this out because looking just at the going listings, you'll see many auctions going with extremely low prices, but which haven't met reserve or have other factors geared to jack up the final price -- try to get the most clear idea of the price and demand for your niche by checking closed auctions.

Also bear in mind that many wholesalers have low/no minimum quantity prices advertised on their site, and will often make better deals on quantity and repeat customers. The wholesale business is at least as competitive as the retail these days, and many wholesalers will work hard to get and keep your business.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Site Admin
fudjj
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Joined: 27 Jul 07
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24 Jul 11 08:30:54 pm
I really dont understand... Why droppshippers etc.. is more expensive through salehoo then it is om e-bay???
Am I doing something wrong here? Please! Can someone help me get on right track???


This would definitely be one of the most asked questions we tend to see, and Frank has highlighted some of the issues for you in his post.

eBay is a wholesale marketplace, that's important to remember. You have everyone selling on there, yes even wholesalers themselves. It's not impossible to make money on eBay, far from it, but it does take a lot of research and good planning to to it really successfully these days.


Mark (fudjj)

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SaleHoo.com

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richelle_salehoo
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25 Jul 11 02:04:20 am
Hi and welcome to SaleHoo, glampam :)

Frank and Marc have more than enough experience to vouch for their replies!

So what can you do about it?

- You can try ordering in bulk quantities to drive the wholesale price down
- You can eell on another auction site other than eBay – there are heaps to choose from and profit margins are usually better. Craigslist is also a good place to sell if you live in the USA. (Let us know if you need more suggestions for places to sell online)
* Or buy from liquidators – this lets you get product for pennies on the dollar. (I’ll let you in on a secret, this is how lots of powersellers make money on eBay these days)
* Find a niche market with few competitors – collectibles and one-off items have amazing profit margins, even on eBay.

These days, you have to be pretty savvy to survive on eBay, so I hope we’ve given you some ideas.

All the best!


Richelle

Customer Support Manager
SaleHoo Group Limited
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planes
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25 Jul 11 08:16:42 pm
You have to understand that literally anyone can sell on eBay. A millionaire can sell on eBay and buy up a million dollars worth of product and then resell it at the lowest but still profitable price. He might only make 4000 thousand profit on a million purchase but he sold it all in two weeks. This is a slight exaggeration but its realistic in terms of the idea.

The suppliers here on Salehoo can't sell to you for the same price as the millionaire's price. That wouldn't be fair to the supplier. They have to make a profit too and have bills to pay. But if they are going to sell a million dollars worth of product in one morning to one person, they could be willing to only make 1000.00. Another exaggeration as before.

Site Admin
fudjj
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25 Jul 11 09:30:00 pm
Plans has put that into pretty plain English.

eBay is very much a wholesale business model these days. What that means is those that can afford to buy the most volume form a supplier, gets the best price, and are therefore in a position to cut their margin lower than anyone else, while still making profit.

The profit may well be low, but the beauty of eBay is it provides the seller with an effective avenue for high turnover sales, and that's the absolute best way to dominate a market using a wholesale business model!


Mark (fudjj)

Community Manager
SaleHoo.com

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