Selling DVDs on EBay–Wholesale DVD Cost and Distribution
If you want to go into business on eBay selling DVDs, then one of first things you must consider is your source of DVDs and the cost of your product. Real wholesale DVDs–and by “real wholesale” I mean coming from an authorized distributor–are expensive. You do not find legitimate, non-counterfeit DVDs sold at $2 or $5 a piece for box office hits and new releases. Although older movies when purchased in bulk may sell in that range, you simply cannot get a legitimate, new version of “Terminator Salvation” or “Iron Man” for $5. For example, when “The Girl with the Dragon Tattoo” was getting ready for release in the United States, my distributor emailed me to let me know that their pre-release price was $19.95, and that there was an additional small discount for purchasing in quantities of 50 or 100. I know you might find a new copy for sale on eBay or Amazon for $5 or $7, but the fact remains that the legitimate wholesale price is much more than that.
If you are wondering how the prices can be listed as low as they are on eBay or with Amazon merchants, you are not the only one. The question that every new seller asks is “Where do you get legitimate wholesale DVDs for low cost?” These questions become a real obsession for some because the answers are not easy to find. Part of the problem is that the top three wholesale distributors do not see you, the small eBay seller as their primary client. You make up a fraction of their business because they deal almost exclusively with large retail outlets.
Just how do you determine an accurate wholesale price? Keeping in mind that true wholesale prices are established by true wholesalers, the most straight forward way to answer this question is to open an account with one of the major authorized distributors. If this is not yet an option, then you can get a close approximation from Walmart prices for new releases. Walmart often prices these DVDs at or a little below wholesale as a sort of loss leader to get customers to buy less expensive DVDs with a greater profit margin. An online site that gives an accurate ball-park price is Deepdiscount.com.
The next point to be aware of, and this is key, is that selling DVDs on eBay is a cut throat business. The competition for conventional movies is very stiff and the profit margins very slim. Keep in mind that if you go into business in the eBay DVD market, that you will be competing with low cost counterfeits and Power Sellers who can afford to take the loss by starting auction prices for box office hits at $2 or $5.
The third point to consider is how to profit as fast as possible from your DVD auctions. If you are starting out small with little start-up capital, this is essential. Selling new releases is probably not the way to begin your eBay DVD business unless you have factored that into a well thought out business plan. Do you want to know where the DVD money is on eBay? Niche video. Yes, you will do much better at the outset by zeroing in on a niche such as exercise, sports, or self-improvement. You might consider getting hold of CCTV footage of police raids or getting a police scanner and following the police around with a video camera and putting your footage up for sale on eBay. This is probably not what you had in mind when you thought of selling DVDs on eBay, but you are more likely to profit by going after the niche then trying to sell yet another copy of “Smokin’ Aces.”
In these few paragraphs I’ve really laid out some very important basic information that you need to consider before you start selling mass market DVDs. Remember, legitimate wholesale DVDs of major new releases do not sell for $2, so do not be fooled by hype that promises otherwise. I’d like to leave you with one final parting idea: Consider starting a niche video sharing site in which upload of the video gives you the right to use the material in any way you see fit. Then, after you have gathered sufficient material, release it in successive DVD volumes.
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