Brand Name Dropship Suppliers - Myth? or Fact?

Free Member
cozziemomonz
Posts: 75
Joined: 29 Dec 10
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13 Jul 11 05:42:42 am
Hi there,

Sorry have not been on for a while lol, hope everyone is doing great.

i kind of need your guy's help regarding brand name Dropship suppliers in Australia and Hong Kong.

I am well aware of the following site and have placed the reason beside these suppliers why i do not use them.

www.plemix.com - By the time you add shipping / Warranty / insurance they are either on par with RRP or more expensive leaving no profit margins compared to current market product research.

www.uniqbe.com far to expensive and i did not even look at total cost with shipping lol

www.00.com.au - These guys are not a wholesaler, they are a mega online retailer - So why are they in salehoo as they are not a wholesaler?

There are companies out there who are agents of brand name products in both Australia and Hong Kong that ebay powersellers are using, as it is very evident from other traders in New Zealand dropshiping from some Asian international source.

Just seems like when push come to shove these suppliers are kept very hush hush from sites like this and google searches. I have been constantly looking for the last 12 months with absolutely no joy

I guess i am a bit feed up with brand-less products as it is the quailty and the return rate that i absolutely crap and make you wounder is it worth the stress and hassle from consumers.

Please restore my faith and show me dropship suppliers that can help.

If you wish to keep them quiet, please Private Message me as they will only be used for the purpose of selling their products only on New Zealand auctions sites and no where else.

Many Thanks
Cody
Cozzienz

Full Member
fm1234
Posts: 836
Joined: 14 Dec 05
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13 Jul 11 08:17:05 pm
I don't have direct experience with the sites you mention, but generally speaking, what I find to be the biggest hurdle to getting rock-bottom wholesale prices on branded goods is that most people seeking those deals are totally delusional and do not understand how wholesale and retail prices have changed over the last fifteen years or so, as the Internet has introduced a third paradigm into pricing-- Internet Price.

Once upon a time there was retail, there was wholesale, and then there were a handful of mail order outlets like Damark where one could get all kinds of crazy deals for stuff. Between eBay providing the world with a massive virtual flea market of anything from socks to Faberge eggs, and the high level of consumer information available instantly since the late 1990s, the "retail" and "actual" price of items have diverged, often widely. while the wholesale prices have largely stayed the same.

As people have joined the throng of attempting to buy online, they do so on the assumption that anything they see online, say a $20 movie at Amazon, must obviously be available wholesale for $10, or less in quantity -- and this very simply is not the case.

Now, I'm sure you already know a lot of this, and don't mean to sound like I'm talking down my nose. I'm just saying that the more I talk to newer people in this general business, and try to help them, the more I come to realise that the biggest obstacle to success in this business is expectation.

This is even more emphatically the case in electronics, where companies are operating at crap margins at retail.

The obvious question that arises here, "Well, FROM WHERE IS THIS GUY GETTING HIS!?" fails to consider a few possibilities other than having a great low-cost supplier, namely 1) having a supplier that is not publicly available and is exclusive to one or a small number of companies, 2) selling goods at break even or even a loss in order to build a customer base for something else, 3) ilicitly-sourced goods, 4) some other thing that doesn't spring to mind but no doubt exists. What I mean is, that the first thing that comes to mind ("He must have a great, dirt cheap supplier!") is not always correct.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Free Member
cozziemomonz
Posts: 75
Joined: 29 Dec 10
Karma: 
14 Jul 11 12:41:02 am
Hi Frank,

The sites i have named above are those of Salehoo directory suppliers. I have been in retail for the last 15 years and decided to pull the plug as when everything went digital, it was not worth keeping my business open.

i do understand the concept of minimal margin to advertise in brand name products under B2B wholesale But buy and hold is just not an option for me as i am not prepared to invest money in product depreciation. Most of the Brand name companies only require an on going account with minimum monthly order requirements as an authorized reseller.

Quote
"As people have joined the throng of attempting to buy online, they do so on the assumption that anything they see online, say a $20 movie at Amazon, must obviously be available wholesale for $10, or less in quantity -- and this very simply is not the case. "

Different suppliers have different wholesale margins in place and anyone who assume for example that movies or other products are 50% or more below retail needs there head read, as most business's require a minimum of 25% profit margin to supply any and all good from wholesalers.

Operating a business of this nature is not only cut-throat due to the economic position we are all in, but we are the face of retail, it is even harder as consumers are very careful with the money they are spending and the products they receive.

there is a basis of 2 avenue to consider:

1) Brand-less Products
Pro's:
*Supply brand-less products and make higher margins
*Easily accessible
*Low wholesale prices

Con's:
* High return rates
* Quality
* Customer Aggravation
* loss of profit due to refunds for faulty goods.

2) Brand Name Products
Pro's:
* reputable name
* Buyers have more faith to purchase
* Manufacture Return To Base Warranty
* Low faulty return rates

Con's
* Low Margins
* Hard to source
* Buy and stock holding required ( Most Companies )
* Becoming an authorized reseller.

I know which method i would choose, you?

most traders that buy in bulk and resell or dropship large amounts from manufactures have already been trading for years where their reputation and their online business annual turn over meets the requirements of manufactures to become an authorized reseller.

Its not so much of an assumption to the possibilities regarding source the that equates to the sellers advertised price, but the means of negotiation, reputation and location of goods being sourced.

Thanks for your reply and good to know that there are other realists out there when it comes to online trading.

Take care

Cody
Cozzienz

Site Admin
richellemonfort
Posts: 5220
Joined: 20 Oct 08
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14 Jul 11 01:06:32 am
Really good thread to read, thanks guys!

I think planes has shared this at least once on the forum that not all great suppliers are accessible online. Some of them don't even have a website which might seem unlikely in this day and age of the internet. Oftentimes you'll need to do a little detective work to find these "hushed" suppliers.

Also, most probably due to saturation and competition it's generally more difficult to find a great wholesale deal these days compared to a few years back :)

Cheers and Good luck to finding your own "hushed" supplier ;)


Richelle

Customer Support Manager
SaleHoo Group Limited
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Full Member
fm1234
Posts: 836
Joined: 14 Dec 05
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14 Jul 11 06:27:29 am

I think planes has shared this at least once on the forum that not all great suppliers are accessible online. Some of them don't even have a website which might seem unlikely in this day and age of the internet.


Actually, one can go into any major wholesale market like AmericasMart in Atlanta, or to any of the major wholesale shows, and find tons of suppliers who have no or very limited presences online -- ie. they have basic order pages and e-mail lists and such, but do not advertise, and some even block search engines from indexing their pages. This is especially true of cash and carry shows, and "order writing" shows.

That is not to say they are "secret" suppliers -- they are abundantly visible at the trade shows and markets; they just aren't interested in being inundated with requests online. I've been working on setting up a wholesale operation of my own for almost a year, and have given serious thought to doing mainly offline sales and leaving online for referrals only, rather than openly advertising. It makes sense for a number of reasons.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna

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