Wholesale reselling process


bpichardo5
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24 Aug 08 08:06:36 am
When dealing with one of the suppliers for instance, their Play Station 3 costs $300 at wholesale, do I pay for the wholesale when I get the money from my consumer and pay the wholesaler and keep the profit?


fudjj
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24 Aug 08 08:34:50 am
Sounds like you are talking about a drop shipping situation.

If so, the drop shipper will provide you with a purchase price, that is your price. It is then up to you to on-sell that product with your margin built into your price.

When you make a sale you pay the drop shipper your purchase price, and you keep your margin.

When working out your margin it's important to do some serious research. You need to know what they are selling for where you are planning on advertising. How big is the market and so on.

You also have to make sure you have your calculations right. You not only need your purchase price, but you need to factor in any other fees the drop shipper is charging as far as delivery or whatever, and also your advertising fees.

Drop Shipping is basically like buying from a wholesaler, with the differences being that a wholesaler will have a better price, even though you will have to pay up front, and they won't shaft you with extra fees on top of your purchase price like a lot of drop shippers!


Mark (fudjj)

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bpichardo5
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24 Aug 08 09:06:37 am
so if i purchase from a wolesaler i got to pay for the product first

what are the differences between dropshippers, wholesalers, liquidators, manufactuers


fudjj
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24 Aug 08 09:28:46 am
so if i purchase from a wolesaler i got to pay for the product first

what are the differences between dropshippers, wholesalers, liquidators, manufactuers


Here is the major difference between all you have listed, but having giving you the difference, be aware that each avenue has it's own benefits and draw backs.

Drop Shippers allow you to advertise a product for sale without purchasing it first, giving you an option of starting with low cash flow.

Wholesalers are the link between manufacturers and retailers, buying wholesale products usually involves buying products in bulk quantities to make the most of volume discounts, but this does require cash flow.

Manufactures actually make the product, then they have a distribution process set in place to get their products onto the market, wholesalers being one of their options.

Liquidators are companies selling stock from a range of avenues. Liquidated stock can include old stock, slow moving stock, customer returns, stock from businesses that have gone into receivership and so on. Liquidation is just the process of selling different types of stock, but is usually the cheapest way to buy so long as you can purchase in bulk quantity.

The bigger the load, the bigger the saving is a usual gauge with liquidated stock.

As I said, they are only the general differences between each format, but each have their pitfalls, and you need to seriously research which one is going to suit your requirements best.

I would suggest that you consider all the factors, not just consider factors that your initial budget may limit you too. Ignoring facts about a certain selling platform because you can't afford that option may just cause you bigger drama with the option you end up choosing based on budget constraints alone.

If you are looking at selling on sites such as ebay, I would suggest trawling through threads on this forum to learn from member's personal experience, because it is not the easy road to money that so many seem to think it is!


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buckleblueish
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18 May 09 11:21:32 pm
hello,i have a question regarding how to get in touch with the supplier.
do we have to contact them first through email / phone call and tell them the service we need,or we just simply create an account with them and place the order?
this is confusing for me
thank you in advance


fudjj
Site Admin
  • Posts: 6292
  • Joined: 27 Jul 07
  • Karma:
18 May 09 11:48:03 pm
hello,i have a question regarding how to get in touch with the supplier.
do we have to contact them first through email / phone call and tell them the service we need,or we just simply create an account with them and place the order?
this is confusing for me
thank you in advance


First contact will depend on the product source, for example:- for drop shipping you can just open an account, unless you need to have some questions answered first, then an email works ok, so long as they have good customer support of course.

Wholesale, I would suggest making contact via the phone to create an open dialogue.


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