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.
"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
*Supply brand-less products and make higher margins
*Low wholesale prices
* High return rates
* Customer Aggravation
* loss of profit due to refunds for faulty goods.
2) Brand Name Products
* reputable name
* Buyers have more faith to purchase
* Manufacture Return To Base Warranty
* Low faulty return rates
* 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.