Salehoo Forum, Wholesale Directories, A Few Supply Sources, and Ultimate Product Sourcing
Doesn’t it seem as if you are always just one secret away from the final and ultimate product sourcing secret? Like that last little bit of cheese in the corner of the tin or that last tasty morsal that scoots away off your plate, the ultimate sourcing secret is just out of reach. It is the IT, the source of $1 new release DVDs, $99 video iPods, $200 32 inch Vizio LCD TVs, cheap laptops, and $25 Nikes. It is the fount of gadget manna.
And it doesn’t exist. But don’t go away. I am going to reveal some secrets. However, the Ulitimate Secret is as real as the Holy Grail. And real or not, once you set off on the Quest, the search itself can take over your life and itself become the meaning. That is, you lose sight of the goal, which is to locate sources for your products.
Wholesale product sourcing directories promise secrets and very often stop just short promising to hand over the Grail. But hype aside, some directories can be useful. Two well reputed directories are World Wide Brands and Salehoo. Although I do not have personal experience with World Wide Brands–now marketed under the name One Source–I have only read good reports and reviews and never heard anything negative. It is important to know that it is somewhat expensive at around $270, so you want to be sure you are serious if you decide to join.
I do have experience with Salehoo. This is much more affordable at $67. Personally, I am pleased with the sources and even more pleased with the forum. If you can’t find a source in the product listings, you can ask for advice on the forum, which is atttended both by buyers and sellers. In a momenet I’m going to say more about product listings, but first I want to mention a few words about DVDs. Everybody seems to want to sell DVDs, and the market is very competitive. If you are seeking wholesale DVDs, then you may want a proper wholesale DVD directory. I personally think the Jillian guide is the best there is. This is as close as you will get to a Holy Grail DVD source directory. The author gives you the top 3 wholesale distributors for the United States as well as the key minor distributors, closeout and liquidation sources. There is also an extensive list of studios and manufacturers. You can’t go wrong with this list. In my opinion.
The thing about product sources is that you are always going to get the best prices from manufacturers. And here it really helps to know what your business is. If, for example, you are selling baseball bats, then you want to get as close to the manufacturer as possible. Failing that, you may need to work with a wholesale or drop ship source. Drop shipping will almost always be more expensive than wholesale, and in either case you will probably need to negotiate a price. There is a misconception that wholesale prices are de facto the lowest prices, but that is not necessarily true. A wholesaler is a distributor of goods and is the next step removed from the manufacturer. A true wholesale business, by the way, requries proof from you of sale tax exemption. And, as I mentioned a moment ago, you will have to negotiate to get the best prices.
So, how do those eBay sellers get those ultra low prices? Surely they must be privy to some insisde secret. Well here’s the deal. Well, it depends on the products, but let’s take DVDs as an example. Something I know about. How does someone sell a brand new DVD release, such as 3:10 to Yuma for $5.00? Either they get it from the manufacturer, it is fake, or they are taking a loss. Often on eBay sellers charge high shipping fees to make up for low product costs. But brand new release big box office DVDs are expensive, and there is no $2 legitimate source. Either they are bootleg, or the seller is taking a loss. Possibly the seller has a way of getting them from the manufacturer at a lower cost.
Since we are on the subject of wholesale DVDs, if you sign up for a wholesale account with one of the big distributors, you will get about 32% off the MSRP (manufacturers suggested retail price). In terms of eBay selling, this is not a great deal. This does not give you much margin, if any, for profit. It is important to understand that if you want a better price, you will have to negotiate with your sales rep, and in order to negotiate successfully, you need some leverage, such as a website or store with ready traffic.
And finally, I wanted to leave you with a few sources. For wholesale, WYNIT is a very good distributor of consumer electronics. DBL is another major player, but according to an account rep with whom I spoke, their TOS forbid selling their products on eBay. Moreover, if you sell from a website, they even require you not to have links to eBay. For closeout goods, try abccloseout and the Close Out Club.
Oops, almost forgot, I hear that Skip McGrath is good. His product sources and eBay material come highly recommended, and I think he’s connected with eBay University or eBay Radio. Don’t hold me to this. Just another lead for you. You call the shots.
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