Wholesalers also selling on eBay?

Hey guys,

Need your input on this one. I recently got help on here looking for a dropshipper of jewelry repair items and I opened an account with them and their prices seemed okay but later I actually found them selling all of their products on eBay and should I mention for much cheaper than what they are advertised on their wholesale site! what gives here? how do I approach this?


Thanks

What you've found is becoming the common on ebay these days don, suppliers using the market place to increase their customer base.

You're playing a loosing game unfortunately, those suppliers who do use ebay as another avenue of distribution will of course always be able to under sell anyone who buys from them at their regular supply price, and then tries to go head to head with them on ebay.

Just a fact of online retail life these days, so many are using ebay to increase their volume. Of course their in business to make money, so they can't be blamed for taking the opportunity that ebay affords them to make that money.

Of course it's why we say that ebay is a wholesale marketplace, it reflects those prices of wholesale, and even below in many cases because if a wholesaler is are selling in solid volume, then they can be cutting their sale price even lower by including volume discounts on a per item basis.

You say that they are a drop shipper, but have a wholesale site. If they are true wholesalers then they will be able to offer you a volume discount, and that may well get you in the game. If they are drop shippers only, I would suggest that you haven't really found the wholesale source of the products, and they themselves are being supplied by someone and just using as many avenues as they can to shift stock.

Hey Mark,

Basically they are a wholesaler and a drop shipper..Their site is setup as a wholesaler and they have you fill out a wholesale application and later approve you and then give you the log on information for their wholesale site. They did give you lower pricing as you buy in bulk. However they too at the same time will drop ship the products for you, if you want to purchase only individually. The problem here is they are offering a drop ship service but they are still misleading you because their individual items on eBay are for much lower. and second for example they have this bracelet repair kit for say 3.50 and if you buy in bulk for say 20 items its 2.50 and that same item indivually on eBay is for 1.99 each with some shipping..Now even if I were to buy this item in bulk for 20 items im still paying more per item then what they are selling on eBay individually for less. If these companies are doing this then why are they advertising to buy from them and sell on eBay?

Hey Mark I attached the emails I sent and got from the supplier below: have a look!

'Hi Bob,

I recently opened a wholesale account with you guys but later today I noticed you are selling all of these products on ebay and for much less than the prices you are offering in wholesale on your site. What gives? unless you can offer me the same prices I will have to close this account and investigate this further. Please get back to me regarding this.


Thank you,
Don
''Hello Don,

Thanks for your message.

If you have an ebay account I would whole heartily recommend that you purchase from this venue rather than the web site. Our wholesale area on our website is simply there for customers that find it more convenient to purchase in large quantities.'
'Hello Don,

Thanks for your new message.

If you can guarantee a certain volume each month I would be happy to work out a discount structure for you. Otherwise, we have no basis for a discount. I'm sure you would agree that if you were only place several orders each month then this is more of a retail situation than wholesale.'
'Bob,


I see your point however that wouldn't help me much with the drop shipping service because you would not be able to ship out to my customers address if I were to purchase from you on eBay. Plus if I buy from you on eBay you will still be beating me in prices. Bob this is not a good business practice to run. I suggest you do a better deal with me on prices or this account is closed.'
'Hi Bob,

I understand business wise however the problem here is if Im buying either in bulk or individually from you, how your items are priced on eBay right now, your still benefiting by your pricing power so if I were to use you as my supplier your in return competing against me by you selling your own products directly to the consumer. So how on earth would be buying from you either in bulk benefit me business wise if your just going to go back and sell these exact items for cheaper on eBay. It seems to me that your also in the wrong business and should not be advertising as a wholesaler. I don't mean to be rude here but im in a business to make profits not have my supplier go back and sell for cheaper.'


haven't gotten anything else back from him. LOL I guess your right Mark its just frustrating that you can't even use some suppliers if your gonna sell the product on eBay.

If they are a genuine wholesaler then you have absolutely no chance of competing against them online at all, they'll cut you off at the ankles every time with their pricing.

If they are selling an item for 1.99 on ebay, then that item has to be available from them in some volume that would also get you that price. It's cheaper on ebay I would suggest because they are doing enough volume in sales to enable them to sell it individually with that volume factored in.

Companies using ebay to move stock is exactly why it getting so hard to find a supplier that can provide you a price that will enable you to compete. They will have a regular wholesale or drop ship price, then be underselling you on ebay.

It's business, and while their market may well be deceptive if they are pushing ebay has the best place to sell their products, it is marketing, and all marketing is designed to get sales.

Of course ebay is not the only marketplace to sell things on this planet, although sometimes I think a lot of people forget that. These guys wholesale prices may well be sensational for those selling on their own sites, at weekend market stalls or just regular bricks and mortar every day businesses.

There is still far more business done offline in this world than there is online, and while a wholesale price from a supplier may not cut it on ebay, it may well work well in a different market.

I know it's frustrating for everyone trying to get into ebay, but this business is changing. Ebay is fast becoming a big business marketplace, and that's what competition does. As it evolves It creates an environment where the strong survive (in this case business with the most resources to compete) and the weak loose their tails (in this case the smaller sellers who don't have the resources to compete.

Mark,

Can you suggest or ask someone else at Salehoo to see if there is a true drop shipper of Jewelry repair and parts? I probably will buy in bulk down the road but right now im strapped for cash and just looking for a few bucks off each item.


Thanks

By the word 'true' I assume you mean ones that are not selling on ebay mate lol.

To be honest I seriously doubt if that is something the support team would be able to guarantee unfortunately. The problem is a lot of suppliers off-brand, trade under a different ebay id to that of their business name, especially drop shippers!

They will do their best to hide their business identity to save their DS customers knowing that they are not only selling to them, but then competing against them as well.

It's a situation that you currently find yourself in. Imagine a supplier coping the same sort of flack from 300 a day lol, not a pleasant thought for them at all, so for the most part, their competition against their own customers will be done by stealth.

These guys are there to make dollars, and most will chase down every avenue they can to do it. They will offer sellers a drop ship service as part of that strategy, then go straight out and under sell to increase their sales.

I can't personally see how drop shipping can ever survive in a marketplace such as ebay. Evolution will see the drop ship suppliers cut their sellers loose and take over the market themselves, then go head to head on a wholesale price structure with other sellers.

Sure, there will always be room for smaller sellers who have found markets that the big guys don't consider viable enough for the effort required to sell to that market, but for the most part it will become a big business dumping ground.

It's all a bit dark and gloomy lol, and I don't know how long that will take to evolve, but I do know it's coming. If you chart the business model that ebay offers and the way the online market in general is evolving, it's a sure thing in my opinion!

Yes you are right Mark..


So as for others future reference DO NOT BUY FROM: AMSCO LTD. THEIR WEBSITE IS Link hidden: Login to view . Stay away because they go and sell the products on ebay!

LOL