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    11 Replies Latest reply on Dec 5, 2007 1:17 AM by NatOnline

    Lessons Learned-Advice

    Memphis Newbie
      I am an online reseller mostly Ubid and Ebay auctions. I have tried dropshipping, buying from China, working deals with bigger chains etc. I am a licensed reseller and I have a DUNS number so I always get a tax break but the prices I find that are supposed to be "wholesale" are really retail or worse. I have looked at Wholesalebrands and many others and just can't seem to get my hands on a steady discounted supply of consumer electronics that consumers actually want to purchase.

      The little success I have had in the 1yr+ in business is getting lucky on other auctions and then reselling for a profit. It is a lot of work.

      I have lost money to scams, books, advice, importers - you name it. Has anyone else been or still going through this? I have all of the drive and desire to go large and create my own web site etc but not without products. I could really use some "this is what you should do advice" here.

      Anything sent to me is most appreciated. Thank you.

        • Re: Lessons Learned-Advice
          CorpCons08 Ranger

          I need you to answer a few questions for me so I can better understand your situation.
          I own a business consultation firm and would like the opportunity to work with you.

          What kind of financing do you have available to you for purchasing your inventory?

          What kind of merchandise are you currently looking to work with?


          1 of 1 people found this helpful
            • Re: Lessons Learned-Advice
              Memphis Newbie
              Hello - Thanks for the quick responses. The products I work with are cameras, ipods, higher end laptops these kinds of things. I tend to stay away from refurbished items. I have sold these but most of the customers seem to be looking for new at the best possible pricing. Generally, I use my own money instead of credit because I use research to judge demand, market availability and other factors so that I can do a quick turnaround and replace the funds.

              Once I find a source or several sources, the web site will be next. It seems to me that suppliers are a very closely guarded secret.

              Again, thanks for the replies.

            • Re: Lessons Learned-Advice
              NatOnline Tracker
              Hello Memphis and welcome to the forum,

              I never go through dropshipping, auctions etc...

              I think the good base is the same concept of brick and motar store. Your own website with your stock if possible with renewable products.

              I don't know an experimented webmaster/owner that never lost money to scams, rip off, unprofessional people etc...

              Good luck, I am sure someone in this forum can provide the wholesalers you are looking for.
              1 of 1 people found this helpful
              • Re: Lessons Learned-Advice
                Lighthouse24 Ranger
                My advice is to "think small."

                You say you are trying to get "a steady discounted supply of consumer electronics that consumers actually want to purchase." Unfortunately for you (but good for us who are Christmas shopping), the big box stores are trying to do that, too. The top 71 retailers in the nation EACH sold more than $100 million dollars in consumer electronics last year. WalMart sold more than $14 BILLION in consumer electronics. Web-based retailers sell a consumer electronics item on-line about every one-fourth of a second. (Source: Forbes) The main reason you are having such a problem is that as a small retailer, you simply can't buy, receive, warehouse, sell, and ship enough product for manufacturers or wholesalers to bother with you.


                So what can you do? Think small.

                Your opportunity lies in consumer electronics items that the big box stores are ignoring, but that a smaller base of consumers would absolutely want if they only knew about them. Sharper Image started with one product - a jogger's watch - and became a million dollar company in two years. Each year, hundreds of developers of new consumer electronics products descend on trade shows, place ads in trade journals, spend hours pitching to corporate buyers at big box stores -- only to be rejected. (Sometimes they even submit posts to forums like this asking why nobody seems to want their wonderful new products.) It usually isn't because their products stink, it's because they lack the mass market appeal to compete for limited catalog, truck, warehouse, and shelf space. This is where a savvy small business owner comes in.

                Identify a specific consumer niche to serve, and then seek out wholesale deals on high quality, inventive products that will sell to that niche. Not only will you find reliable sources for products, your unit profit margins on those products will be much, much, much higher than they would be on deeply discounted mass market items. When Sharper Image started, their niche or initial focus was customers who valued physical fitness -- and there's no mystery about where to find those folks or how to market to them. Lands End did the same thing, only it was recreational sailors. For L.L. Bean it was fisherman. In facts, tons of big businesses like those actually began with one guy thinking small.


                Think small. Hope this helps. Best wishes.