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New to Wholesale - Couple of Questions

Discussion in 'Making Money' started by Exine, Jun 24, 2013.

  1. Exine

    Exine Junior Member

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    Hey guys, I've been around these forums for some time and have finally saved up a bit of money to start doing what I've always wanted to do. Wholesale. I am 15 years old and have $200 in start up capital which isn't a lot, but when you have earned it all online, it feels great. Now I know I should wait until I have more to invest into this, however even if I make $50 profit on a batch, that's $50 I have to invest which I didn't have before.

    Now I have found some great Iphone cases on Alibaba from a reputable seller and currently have an invoice for 50 of them, however before I pay and they ship them out I had some questions.

    For starters, I have no feedback on Ebay or Amazon, do I even stand a chance selling an item such as an iphone case? Also following that last question, which service should I go with for selling my items, Ebay or Amazon? Or both :O

    The total order for the 50 cases is $140 - shipping included. Meaning I would have to sell each case for atleast $2.8 to make profit. Not including shipping. I figure I would ship out the case in an envelope and only pay $1 shipping. However how much can I expect to pay for a listing fee on ebay or amazon?

    Also, how do those top dog sellers from China do free shipping on small items such as earphones?

    I have so many questions, it would be great if I could PM someone who is experienced in wholesale and if I could discuss some item ideas I had.

    Anything helps at this time, thanks!
     
    Last edited: Jun 24, 2013
  2. saveferris

    saveferris Registered Member

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    Everyone has to start somewhere, so don't worry about zero feedback on eBay and Amazon especially if you're selling low-cost items like mobile phone accessories. You're going to have to compete primarily on price, at least at first. I would try both eBay and Amazon... in general, Amazon buyers are willing to pay more for the same item (though there are some cases where the exact opposite is true).

    Both Amazon and eBay have no listing fee (limited to I think 50 or 100 items on eBay per month). Make sure you calculate all of your costs before deciding on a list price -- don't forget PayPal transaction costs if selling on eBay. If you're not a Pro Merchant on Amazon ($40 a month), you'll have to pay an extra 99 cents per item sold. I recommend waiting on becoming a Pro Merchant until you're consistently selling at least 40 items a month, and then it becomes a no-brainer. I also recommend using Amazon FBA -- it will free up your time dealing with shipping out items, and it will let you compete with the big boys on price because Amazon assumes free shipping. You can sell an item for $4.00 that others are selling for only a penny because of that shipping cost difference, and you still would get the same money back from Amazon.

    Small items ship for China via regular mail. I bought a Walking Dead poster from a place in China that only cost $5.00 including shipping. It was rolled up and shipped in a tiny tube about 10 inches long. I doubt they made much money on the deal, maybe $1... but if you're doing huge quantities, those dollars add up -- especially in a place like China where the cost of living is less.

    Good luck!
     
    • Thanks Thanks x 1
    Last edited: Jun 25, 2013
  3. Exine

    Exine Junior Member

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    Thank you so much!

    I have learned much more in this single post than I have in the couple of days that I have been looking into this :)

    To your comment about the people in China only making $1 on the trade, that is what I am probably going to end up doing. If I buy 100 cases and make $1 each, that's $100 more I have to invest in another product or batch.

    Thanks again, Exine
     
  4. saveferris

    saveferris Registered Member

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    There's nothing wrong with making $1 an item, assuming that your cost is low and it takes little or none of your time to process the order. If you are spending $10 to make only $1 profit, that's crazy... but if you're only spending $1-2, that's a decent profit margin. Likewise, if it takes you 15 minutes to process an order, you're only making $4 an hour. So consider your time and your investment when determining whether or not a product is worth selling.

    There's no point in undercutting people on price; instead, try to match the lowest price if you can. If you undercut their price, they may drop their price and you get into a pricing war, which is stupid. With experience you'll find that there are ways to compete other than on price. Customer service and turnaround time for orders are just two of the ways. Bundling is another way. If you're selling cases for a specific type of phone, maybe bundling it with a pack of screen protectors for that phone would make sense.

    Before doing the deal on Alibaba, you might want to ask for some U.S.-based references and call them to see what their experience was with the vendor. There is a lot of fraud on Alibaba, so you can't be too careful.

    If you have any other questions, feel free to PM me.
     
    Last edited: Jun 25, 2013
  5. SpookSEO

    SpookSEO Senior Member

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    That's good. You're young and yet you already aspire to have a business of your own. Since you are only starting, you could do what you assumed is right, but of course, with careful planning.