I'm new to SaleHoo - What's the best way to start out?

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lmneozoo
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Joined: 28 Aug 10
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28 Aug 10 02:02:48 am
Well, i'm new to SaleHoo and i just read the new user manual and i was just wondering what the best way to start out is. Thanks

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fudjj
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28 Aug 10 10:19:40 pm
Hi lmneozoo, and welcome aboard the good ship SaleHoo : )

I think the best place to start is to discuss a little about what type of products you are interested in, the type of business model you want to use (Drop Shipping, Wholesale and so on), and last, but certainly not least......what marketplace you would like to market your products through?

Cheers


Mark (fudjj)

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lmneozoo
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Joined: 28 Aug 10
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28 Aug 10 10:58:45 pm
I want to do drop shipping as i am in college and do not have much space to store large quantities of items. i was thinking about starting off by selling on ebay, and planned on selling video games as i know alot about them. i was browsing suppliers. how would i go about setting up an auction, do i just create an auction and then when it sells contact the supplier or contact the supplier first?

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that is the supplier im currently looking at.

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erika-garnica
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30 Aug 10 11:22:03 pm
Hi Lmneozoo,

You've got some good ideas about how to get started, but there's quite a bit to it that you'll want to consider.

You'll need to contact the supplier first and set up an account with them before you can list any of their products on eBay. Once you've set up an account with a supplier, you can then create auctions on eBay for their products, but make sure that you do very thorough research on the particular products you're going to sell, so you can make sure you'll be able to make enough money while still being competitive on your prices.

At this point, you can search the completed/ended listings on eBay for the items you want to sell, to see how much other people have been paying for them in the past 2 weeks on eBay, but eventually, you'll want to use a much more comprehensive eBay market research tool.

And make sure to consider eBay and PayPal fees in your calculations, since they can be significant. I personally like the website www.ebcalc.com, where you can put in the supplier's cost for the item, as well as the price you want to charge, and find out how much your profit will be AFTER your eBay and PayPal fees are paid. I would aim for something between 10-25% profit at this point.

As far as selling video games is concerned, keep in mind that many brand new video games sell for just a few dollars on eBay, so it can be difficult to start making any real money selling video games, particularly if you're dropshipping them. You may want to consider selling some other products instead or as well at this point.

I took the liberty of looking up "lmneozoo" on eBay, on the off chance that it's also your eBay User ID, and it appears to be, since it was just registered the day before you submitted your post here on Salehoo.

You've made an exciting step in your life to pursue this great opportunity, and I'm glad to see that you're being very proactive in your efforts, but keep in mind that there's going to be a certain amount of "paying your dues" that will need to happen as you get started, before you'll likely start experiencing some success and earning some steady money.

As a new eBay user with zero feedback, it's very important that you start building up your feedback by buying things on eBay. You don't have to spend very much money to do this -- there are literally millions of items on eBay that cost 1-10 cents to buy -- but it's crucial that you start accruing feedback, so that eBay buyers know that you have some experience on eBay and will therefore trust you enough to start buying things from you.

Once you've bought a few items and have started accruing some feedback, I recommend starting out by just listing a few items at first, no more than 10 (it can be easy to get overwhelmed at first, so make sure to pace yourself).

Above all, make sure you know what you're doing before you list anything on eBay -- otherwise, you could lose your shirt and/or your eBay reputation. eBay has some excellent tutorials and help pages for new users in their Learning Center (Link hidden: Login to view), so please take the time to become very familiar with how to list and sell items on eBay before you actually do so.

As far as Computer Gallery is concerned, I went to their registration page and noticed that they ask for both your Company Name as well as what type of business you are (sole proprietorship, partnership, or corporation), your business license or EIN (Employer Identification Number, issued by the IRS), and your State Sales and Use Tax ID (unless you live in one of the few states that doesn't have sales tax).

This is pretty standard with most dropshippers, actually, so before you start signing up with suppliers, you should go to the IRS website and get an EIN for your business, then go to your state's website and get a state business license/tax ID, and sales and use tax ID as well.

I outlined some of the steps on how to do this in a previous article I wrote for Salehoo:

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I wish you the best of luck!

Erika G.
Theauctionguru


Erika Garnica
eBay User ID - Theauctionguru
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gbayer14
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Joined: 30 Aug 10
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30 Aug 10 11:49:55 pm
Amazing! I'm taking a shot at this as well and you've answered almost absolutely everything that I'm wanting to know. I'm very nervous about starting this business and didn't realize all that was involved. You've cleared up some answers for me! Thanks Erika!

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erika-garnica
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6 Sep 10 01:22:44 am
I'm happy to help in any way that I can!


Erika Garnica
eBay User ID - Theauctionguru
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richelle_salehoo
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6 Sep 10 11:38:10 pm
Great tips Erika, as usual! :)

Keep them coming...


Richelle

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SaleHoo Group Limited
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jcunnea
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11 Sep 10 11:11:52 pm
Many years ago I was going to start selling video games exactly how you are talking. I found the wholesalers and setup accounts, etc.
The prices on the games were rediculous. I had to pay $45 and sell the game for $50. There just wasn't enough profit margin. Needless to say, I found other things to sell.
One other thing. Make sure you are buying original games. There are many copies out there and you can get into serious trouble selling fakes. Many companies in Asia will sell you fakes and tell you they are original when they are not. Ebay will TOS you and customs & the FBI will be very interested in your new business.
Also make sure you find how much they are going to charge you for dropshipping.. There is usually a fee of some sort and check to see how long it takes for shipping. Most people don't want to wait 20 business days to get things.
I don't mean to scare you off but I have been there, done that.

Site Admin
fudjj
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Joined: 27 Jul 07
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12 Sep 10 08:35:21 pm
Computer games are certainly a popular item to source, however as JC as indicated above, it's an extremely difficult market. I'm personally involved in the games market myself, and while you can make money, you need to start out with money for big account purchasing.

Wholesale pricing is the only way to make a mark in this market, and when I say wholesale pricing, I mean Volume purchasing. Buying 10 or so games won't get you enough discount to cover a can of coke, you need to be talking high numbers with BIG distributors!


Mark (fudjj)

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SaleHoo.com

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