A lot of people are under the impression that electronics is a highly profitable market. Unfortunately, this simply isn't true. Electronics is actually one of the most competitive markets online. The electronics industry has always run on very low margins from wholesalers to end users and marketplaces like eBay have only tightened the margins even further.
Most electronics sell at the wholesale price or below wholesale on eBay. That's how intense the competition is. Most of the sellers at eBay are wholesale suppliers themselves, or have sourced them from liquidation.
How do these sellers make money? Well plenty of them don't. If you checked back on some of these sellers in a couple of months time, you may well find that they are out of business. As for the others, they use some very canny sourcing and marketing tricks, which we've listed below.
The point is, the number of sellers present in the electronics market is deceiving. It's much more difficult to make money in this market than it appears.
If you do wish to stick with the electronics industry, then here is what we suggest:
* Use liquidation suppliers to get bulk lots at prices well below wholesale.
* OR: Purchase from wholesalers in very large quantities (and when we say very large, we mean a spend of $200,000 or more) - this is how the big eBay powersellers do it.
* Increase your feedback and get powerseller status BEFORE entering the electronics market. This will give you more visibility in the search.
* Sell via your own website or your eBay store if possible, as buyers generally pay more from these
Hope this helps.