That’s it, I’ve had enough!
It’s not very often that I share emails from customers on the blog (actually, I think this is the first time), but this one email was the last straw. It is so frustrating that people don’t seem to think that the same basic principles that apply to offline businesses, also apply to eBay businesses.
What was the email about?
Here’s the main guts of it - ‘…I found I could get most of the things I wanted on eBay cheaper than what was being offered by the so called wholesalers you offered…’
…& my reply.
‘The wholesalers listed in the guide are all genuine wholesalers selling at true wholesale prices - these wholesalers all have successful businesses supplying retail outlets in Australia. If their prices were too high/not wholesale they would be out of business in no time.
The problem isn’t with the wholesalers, but with the categories you’re looking at on eBay. Some categories on eBay are so competitive & oversupplied with products, that the prices for the items has been forced down to near wholesale prices - in these categories, the only sellers that will survive are those who can afford to buy very large quantities, or those who import the products from overseas. It simply isn’t possible to compete in those categories.
You need to choose a category which isn’t oversaturated, of which there are still plenty out there. Once you successfully locate a good niche market (good demand & low competition), you then shouldn’t have a problem sourcing the products from the wholesalers to sell at a profit.
A good place to start looking for a niche market is in an area you have an interest in. Have a good look through some of the categories that you are interested in & see if you can find a gap in the market for a product that you know people with your interest want, that either isn’t being supplied or only in small quantities, & go from there.’
This highlights one of THE BIGGEST REASONS people fail to get their eBay businesses off the ground. They don’t stop to find a niche market, but simply decide to sell some product in one of the saturated categories on eBay that everyone else is selling.
It’s the same principle that applies for offline businesses. You wouldn’t dream of starting an offline business without first assessing the demand for the product in your area, & checking out how much competition you had. If you had a fair bit of competition, you’d either have to look at another area or business, or figure out what you can do better than everyone else so people would rather use your business than the others.
…So don’t do it with eBay businesses!
I am exceptionally fussy about which wholesalers are included in the guide & will not include companies that aren’t true wholesalers (simply discount retailers) like many other wholesaler sites do. The wholesalers are there with a great range of products at wholesale prices, all you need to do is find your niche - there is still plenty of money to be made in good niche markets on eBay.
Don’t just assume that wholesale prices for all products are substantially less than what they’re selling for on eBay. In many cases, the wholesale prices are much lower, but in the saturated markets, this isn’t the case.
Just because the wholesalers can’t always provide the product at 30% or more less than the eBay price, doesn’t mean they aren’t true wholesalers, or that they are selling at an overinflated wholesale price. It’s the heavily discounted eBay market in some categories that is the problem.
Find a good niche & you won’t look back, follow the rest of the sheep & you’ll be out of business in a matter of months.
