Wholesale and dropship costs

Free Member
shonargaon
Posts: 15
Joined: 18 Mar 10
Karma: 
4 Dec 10 12:46:43 am
Hi,
I been looking for genuine suppliers for a long time. I am in australia. And i did find few suppliers and they seem to be very genuine

However my problem is, I can not compete in ebay. My suppliers product cost(excluding GST) are same as what other sellers are selling on ebay with free shipping. If i try to sell the same item, i will have to add gst to pay supplier+shipping+ebay fee+paypal fee. Unless i am planning to have negative cashflow, which im sure none ever wants, I can not put the items in ebay.

I am trying to do dropship, so I cannot make bulk purchase to get discount, even so, I asked wholesalers about bulk cost, and still is not competitive on ebay

I have tried looking at the other sites, problem is, there are not many traffic to generate any sale

Is there any suggestion from anyone about where I am doing wrong, or is there a different approach i should try

Any help would be greatly appreciated

Site Admin
fudjj
Posts: 5913
Joined: 27 Jul 07
Karma: 
5 Dec 10 08:31:05 pm
It really does depend on the types of products where eBay is concerned. You're going up against all sorts of sellers, everything from solo sellers right through to large wholesalers themselves, who will sell to you as a supplier outside of eBay, then compete against you on eBay.

It's all about finding market space, and that comes down to finding a product that is available to you at the right price and one that has potential to find a market on eBay.

It's never an easy equation to work out, and the worst part is that's only the start. This is one tough business to be in and it's just getting harder and harder to find some market-share as more and more people move into the area of online sales.

As far as suggestions go, the obvious one seems to be that you need to look at different products or at the least different suppliers for those products. Drop Shipping is never going to secure you the best possible price, but you also mention that Wholesale inquiries aren't offering a good price either.

You want to firstly be sure as to who you are getting a wholesale price from as there are plenty of suppliers that will call themselves wholesalers, but in reality are not. If you want to get a genuine wholesale price then you need to talk to a genuine wholesaler who will give you a price based on a particular order quantity.

If you find that a genuine wholesale price still can't get you market-share, then you definitely need to look at different products firstly, and then look at suppliers once more.

Research is king in this type of business and is often where the most dedication is required. When you think you've researched as much as you possibly can, then you need to refuel and research twice a hard most of the time.

: )


Mark (fudjj)

Community Manager
SaleHoo.com

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Free Member
shonargaon
Posts: 15
Joined: 18 Mar 10
Karma: 
6 Dec 10 09:29:54 am
Theres the words of inspiration fudjj,

Thank you fudjj

I know i havent been able to get anywhere, but i am not giving up. As you have advised, I will refuel and go twice as hard

for the rest of it, I guess time will tell

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