One of the best ways to turn a large profit on eBay is to have the ability to purchase your inventory at super low prices and turn around a sell them for a hefty profit. Often, the best way to get great deals on items to sell is by purchasing them from a wholesaler. There is virtually no limit to the type of products that can be purchased from wholesalers, but there are a few things you need to know before proceeding.
Some wholesalers require you to have a business license and/or tax ID. These are easy to obtain, but do cost money. Should you not want to go through the trouble, you will have to count out wholesalers that have this requirement.
Many wholesalers have minimum purchase requirements. These requirements vary. If you are thinking about purchasing a pallet of inventory, consider where you will store it. If you live in a one bedroom apartment, it is probably not practical to order items by the pallet full. That said, not all wholesalers require such large purchases, instead optional for a minimum dollar amount to be spent.
If you do not have money to burn, and most of us do not nowadays, it is of vital importance to do your homework before purchasing a lot of any item. By homework I mean searching eBay to see what items like the ones you are wanting to sell are actually selling for. This quick and painless task can save you tons of money and heartache. If you see that after eBay and PayPal fees your profit margin will be less than 30-50%, it is probably best to walk way.
Another bit of homework that I highly recommend is doing a background check on the wholesaler that you are considering purchasing from. Checking with the Better Business Bureau and doing an internet search of the name of the wholesaler are good ways to see what type of reputation they have. If no minimum purchase exists, it may be wise to place a “trial” order to see if you do indeed receive what you ordered, how long it took to arrive, and see the quality of the merchandise.
Before purchasing hundreds or even thousands of items, think about the work that will be involved to photograph, list, and ship them. If you are a busy person, consider spreading your listings out over a period of time that is comfortable to you so that you do not find yourself in over your head.
There is no doubt that eBay can become a real business of your own. With the help of reliable wholesalers, commitment, and basic business knowledge, you too can be one of the thousands working towards making your dreams come true.