Wholesale businesses all scams?

Free Member
Posts: 1
Joined: 01 Oct 07
22 Nov 07 04:40:05 pm

ESPOO FINLAND; Yo everyone! First time posting. I've been a member for several months and have done extensive research on the business. I gotta say - I don't understand how anyone can make money especially competing with ebay players. They sell electronics for HALF the price I can find anywhere in SaleHOO or other sourses! Anyone else notice? I've got my Yahoo store all set up as well as Paypal. Idea is to auction on ebay, few items at a time and in the about me page, I'll have a link for more great deals visit my store. Problem is, I'm very shaky on even putting out a single product seeing the Powersellers and some others selling for half price etc. Too much saturation as well it seems. Even though many items are in shy supply, and demand out of hand, I see tons of items supposedly almost imposs. to get, filling the pages. Wow, what a posting for a first! Don't get bored now!
Thanks for reading. Appreciate any comments or Q's


Full Member
Posts: 472
Joined: 12 Jun 07
22 Nov 07 08:01:34 pm
First of all ebay is NOT a wholesale market. It is a 'below wholesale' market. The people you see selling the items a half price are doing one of two things:

Buying in huge quantities.
Buying liquidated and surplus items.

Next, the electronics market is too saturated for the average person to compete. They just don't have the buying capital to make any money.

I personally know only one seller doing xboxes and ps3 on ebay. His minimum purchase is $250,000.00 for a load. And on top of this he only makes about $15.00 profit per item...But in order to sell he has to buy in that large of a quanity to get a small purchase price per unit..

The greater the quanity you buy the smaller per unit price you get...So there is no way for a person to buy 10,20 or 50 units and be able to compete with other sellers who have extremely large buying capital..

Other sellers buy from liquidation companies and buy by the 'lot' or the truckload. Doing this they keep the 'per unit' cost load cheap and make up the difference by making a small profit on each item and selling a large number of items.....

Full Member
Posts: 485
Joined: 26 Feb 07
23 Nov 07 09:21:55 am
Depends on when and where you get in, that's always going to be the case.

But you can really achieve amazing results if you know exactly where to look. Always.

Full Member
Posts: 6
Joined: 19 Nov 06
27 Nov 07 06:08:45 pm
yes you are right HUSHSALES
most people that say they sale wholesale really don't
a retailer like some of us that purchase a small amount
can get good prices from a true wholesaler.
An example would be in my case:
i sell to resellers dj equipment
I purchase 1000 watt speakers from the manufacture
lets say $149.00 i then sell then to the reseller
from 229.00 to 279.00 the reseller then goes and sells them
at full price 349.00 each. So as you can see this is
true wholesale prices at 149.00 each

now another example of manufactures screwing us on ebay:
Lets look at the ipod shuffle 1gb the newest that came out. the manufactures sells to us at anywhere from 11.00 a pc to 22.00 a pc depending on how much you order at one time. not a bad price for them only thing they sell them on ebay for about 14 to 18 dollars so we can't sell them on ebay we will not make no money because we have to pay ebay and paypal as well as shipping so not worth it for us unless they stop selling on ebay. And that goes for a lot of wholesellers and manufactures.
The buttom line is look for a distributor like myself
that we give you the good pricing of items

hope this helps
good luck :D

Free Member
Posts: 2867
Joined: 11 Mar 10
28 Nov 07 03:57:29 am
I think what albert is trying to say is that the same wholesalers that sell items to you. Also sell thier items on ebay. One thing you will note that most of the wholesalers on the net right now used to be full blown ebay sellers.When the rates on ebay raised they moved into thier own webshops and got listed on the wholesale databases like salehoo. They buy in huge quantity and resell items on ebay and thier own websites. They make more money selling items to you then they can make on ebay.

As a wholesale seller myself. I would rather sell to a walk in customer then on ebay. As I can literally charge any price I want under Retail and make more money on the item then if I put that same Item on ebay.

Generally most of my items sell for only 1/4 th of thier retail value. If its worth $400.00 Im probably going to sell it for $25.00 to $50.00

Since I buy in truckload size bulk im generally only paying about $13-$16 for that expensive item. There are many items that we sell that sell near the retail value but that is based on demand. We sold 1 item just a few days ago we believed would only make a few dollars worth of bids for $30.00 above its MSRP. So its not really just the price you can aquire the item its the way you sell yourself.

Remember the more you have out there the more chances you have of selling items at your price. Bidder are generally impulse buyers. They shop store to store and if they see something they like they buy it. Many dont research prices to see if there is a cheaper one out there. If you push the sale with a great description. You will sell that item for more.

I ran 50 items just using a basic design. With just enough info to let the bidder know what they were bidding on. Most of those items sold very low. They sold but not for much.

The next week we ran the same items again with fully detailed descriptions and emphases on how much the item was in demand and how it was a must have item. We even added extra High res pics of the items.
When they sold we sold all of them for 3-5 times more then the first 50 units.

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