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Product Sourcing for Home Business Success: Getting the Most Buck for, well, Your Buck

Drop shipping wholesale products

Is this the right do-it-yourself, home business model for you?

Do you want to know how to set up a legitimate home-based business selling goods and services via your own ecommerce shop, or perhaps on eBay or Amazon? More and more home businesses are going online to leverage the power of the Internet, and more and more people are staking out their own market territory directly from home.  Many businesses now depend on drop shipping and reliable wholesale sources, while eBay and Amazon provide the marketplace and millions of potentially hungry buyers.

Whether or not you plan on setting up your own privately hosted shop or launching an ebay or Amazon store, a basic understanding of how the wholesale and drop ship industry works is vital to your success.

No matter what course of action you take, you want results you can duplicate in a systematic fashion.

Have you heard about “everyone else” making money online and how so-called easy-money is made drop shipping?  Wholesale goods strategies maximizing drop shipping may be simple in design, but the truth is that it is not easy in so far as it really does require thought and effort. However, with the right tools and knowledge this is a flexible, highly workable business model that allows you to start small and scale up, and up . . . and up.

It is our mission to provide you with honest information regarding product supply, and to kick things off, we have a short-list of resources to help you get started.

The question is this: Are you up to the challenge?

Let’s face it, the quest for home-based income has become a sort of Holy Grail among those seeking greater personal freedom and financial autonomy.Many Internet marketers also love to talk about how easy it is to make money with drop shipping, but drop shipping is not a gimmick.


Don’t be fooled by glib talk about the work at home ecommerce model. The people who got good enough at it to call it easy got there through persistence and following a business plan. Selling goods online or on eBay using the wholesale-dropship model is not a gimmick; product sourcing is not a gimmick, and online retail sales is not a trick. These are all things that you can learn how to do successfully. Running an ecommerce business selling physical products–and product sourcing for your home business is vital to that–is a solid way to make money, but not as a gimmick, scheme, or trick. And the truth about success is that it rarely happens quickly and all at once.

Wholesale Goods

There is a great deal of brouha and noise about how to tell a real wholesaler from a middleman. Let’s get this out in the open right now. A real wholesale business will always require proof of a state retail sales tax permit. Any business saying or implying that it is a wholesaler but not requiring a sales tax permit from you is not a true wholesaler. The term, “middleman” or “middlemen,” generally refers to these sorts of businesses; that is, retail businesses charging discounted prices but misrepresenting themselves as wholesalers. (Keep in mind that there are many legitimate businesses selling discounted goods who are not true wholesalers. The “middlemen” I am referring to attempt to mislead you into thinking that they are are real wholesalers.)

A moment ago we made reference to the sales tax permit. The sales tax permit, sometimes referred to as a resale certificate, is simply a license granted by your state that allows you to buy goods for resale without having to pay sales tax. Anyone can get a sales tax permit from their state of residence; it is easy to get, and generally costs nothing. So don’t fall for “middlemen” who charge a fee to help with this.  (More about Business Permits. . .)

Now, although a real wholesale company will always require you to have a state retail sales tax permit–and you will need this if you have a true home business–don’t reject a company just because it may not be a true wholesaler. The important thing is whether or not the price is right for you to make a profit. There are also companies, such as liquidators, closeout specialists, and jobbers, who may sell below wholesale price and do not require a retail sales tax permit. Examples of such companies are sav-on-wholesale.com and liquidators.com.

Drop Shipping

A drop shipper is a manufacturer or distributor who stocks the inventory and mails it out to your customer under your company name. You sell the product at whatever price you set, pay the drop ship supplier and keep the difference. Some drop shippers may require membership fees, some may require minimum purchases, others may mark the price of the product up from the wholesale price. When researching drop shippers, it is important to establish whether or not the drop ship price will allow you to make a profit. One other point to keep in mind is how and where you intend to do your selling. Drop shipping might work just fine in one environment but not in another, for example.

If you are brand new to the area of finding and providing goods via wholesale and drop ship product sourcing, you are at a disadvantage because you may not know how to evaluate the information you are presented with, and so you are not sure how to determine what’s good and what’s bad. You also may not want to invest the time to do your own product supplier research.

With that in mind, we do have three directory resource recommendations for you.  These are paid services, but neither one will set you back very much, and we think they offer tremendous value for the price.   First, Salehoo is a directory that allows access to a list of more that 5000 wholesale, drop ship, liquidation-closeout and other low cost suppliers. Through this list of contacts, you have potential access to thousands of products. Also available is the Salehoo forum.

The forum may be its most valuable asset. You not only have at your fingertips the forum archives, but you can plug in to a very active network of other buyers and sellers. I am a Salehoo member and for that reason feel safe in recommending this service. However, it is by no means necessary or even the only way to find product sources. It is merely a resource that, in addition to providing contact and background information for vast numbers of suppliers, also provides educational materials, product research tools, and the means to network with other people and product suppliers. You can find out more, here: Salehoo Global Directory of Wholesale Distributors.

The second recommendation is the Aid and Trade directory resource.  This also provides access to a vast number of legitimate product suppliers, but does not otherwise provide the active community offered by Salehoo.

The second directory is for those of you who know that you want to focus on media, primarily DVD movies. I warn you that this is a very tough niche to crack, but the Jillian Entertainment Guide is simply the best and still is the best list of wholesale, drop ship. and liquidation-closeout DVD sources that we have yet to find. And we have looked. I say this with such certainty because I own the list and, as I mentioned above, I have looked. The price of the Guide is minimal, but if you are considering selling DVDs on eBay or through ecommerce, this will give you a wide range of contacts including the major studio sources and the major wholesale houses distributing to retail outlets throughout the United States. These will be the same sources used by some (not all, of course) of the eBay power sellers. For wholesale DVDs, try, Jillian Entertainment Wholesale DVD Directory.