People shopping online are picky when it comes to prices. Surveys show that online buyers expect prices on the Internet to be lower than in stores. This gave the rise and popularization of marketplaces that allow for auctioning products, such as eBay. There is no doubt that eBay has been a rising success ever since its inception. Ergo, it is natural for aspiring online sellers to turn to eBay with their business idea.
You may have already done all the reading you need and decided on a niche category. The next step would be to find a supplier of these products so you can sell them on eBay. After all, suppliers are wholesalers and thus offer a lower price due to the economies of scale. Without finding a regular supplier, most people will be unable to give a competitive price that is profitable. So how does one find a supplier?
A Retailer’s Role In A Supply Chain Is To Sell Products, Which Depends On Sourcing Products From A Good Supplier
As a retailer (yes, selling on eBay makes you a retailer), sourcing products at a lower cost gives you the advantage of higher profit margins and lower prices. Drop-shipping is one solution, where you allow the supplier to directly deliver to your clients. However, the supplier will likely do the same for many others and you will find your business operating at a market where there is too much competition for profits to be easy. If you really want to have niche business, you need to have a supplier that is constant, and sign a legal contract to give you exclusive rights to sell their product. Finding contact information has never been easier – just look it up online.
Find Suppliers That Don’t Mind Small Orders
For most products, the manufacturer is usually only able to sell large quantities per order. Their business model depends on that, so you may not have access to prices directly from the manufacturer unless you can guarantee the ability to sell large orders quickly. However, you can still benefit from speaking to the manufacturer because they will likely direct you to a wholesaler or a distributer. These are companies that place massive orders of a product and are able to sell them at a slightly increased prices to retailers. They are usually more forgiving with the size of their orders, so they will cater to your needs as a retailer.
Importing: the most direct channel for consumer products is from producer to retailer to consumer
Competition in the world’s largest electronic marketplace is fierce. You might find that working with a wholesaler is still not as profitable as you would like. A better solution is to bring in products from outside the country and sell them at a slighter higher price. Today, globalization has simplified the process of importing products. Labor-intensive products are usually cheaper to source from China, India and Bangladesh. For electronics look at manufacturers in China, Taiwan and Korea. If you are looking for designer products then European countries are best.
Whichever option you choose, it is important to do your due diligence and research the best options online. You will find a wealth of information that can be used to help you find a supplier that will allow you to profit from selling at relatively low (competitive) prices on eBay.