Wholesale & eBay Forum General Selling Advice & Tips What are true wholesale prices

What are true wholesale prices


fudjj
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19 Feb 17 12:31:54 am
We often see a lot of confusion around what a genuine wholesale price is. Firstly, just let me clarify that drop-shipping is not wholesale and the prices are completely different. Wholesale pricing requires you to buy in bulk, therefore providing you with a wholesale discount. Drop-shipping requires no bulk purchase and therefore doesn't and simply can't, provide the same sort of volume discounts as wholesale purchasing does.

So what is a real wholesale price?
There is no such thing as a uniform wholesale price, it varies between products and suppliers. This theory that it isn't a true wholesale price unless you are getting 50% of what you can find it for on eBay is absurd. The facts are that most prices on eBay are already at wholesale and in many cases, below.

This is because of the marketing tactic being employed by many sellers, but that aside, many products have a very small wholesale discount applied to them to start with. What you will generally find is if a product is super popular and a hot seller, the chances are that it will have a low wholesale margin. If a product is a much slower mover, then there is a good chance it will have a higher wholesale margin, meaning you're potential for profit is greater.

It's all market driven, faster moving products sell quicker and therefore sellers can make margin on turnover, they don't need the high profitability potential. The slower moving products are a higher risk because of slower sales, so sellers will usually avoid them altogether unless the potential reward is there for taking the risk of tying up their cash in them, that comes in the way of an increased potential reward on margin.

So what is a genuine wholesale price comes down to product and supplier, there is really no set wholesale margin on anything across the board.


Mark (fudjj)

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