Where to Find a Profitable Wholesale Supplier & How to Make Sure You Can Trust Them

Most eBay sellers fail to locate a profitable and trustworthy wholesaler when it comes to selling on eBay. If you are to go down the route of selling physical products on eBay, then it is imperative that you select a profitable eBay wholesale supplier. A few things you should consider are:

Firstly and most importantly, will your supplier always deliver your purchase to your door step on time?

The biggest problem sellers find with eBay wholesale suppliers is the fact that they sometimes fail to deliver their products on time. Consider this scenario…

You make an order with your wholesale supplier for 20 pairs of jeans. Your wholesale supplier promises that they will deliver your purchase within 5 days. Being the eager entrepreneur that you are, you list 20 pairs of jeans on eBay in a 10 day auction. That will give your wholesaler plenty of time to get the jeans to you by the time the auction has ended. The end of your auction comes and each pair of jeans has been sold, but your wholesaler has failed to deliver the products to your door step. You now have 20 buyers who have sent you money and are now waiting for their purchase, but you have nothing to send them! You explain the situation to your buyers, some of them understand and are prepared to wait for the jeans, but many are not too happy. They demand a refund (leaving you at a loss due to listing fees and final value fees) and leave you negative feedback. If just two or three negative feedbacks are left, that could harm your business for many weeks until you get them off the front page of your feedback page. A failed delivery from your wholesaler has left you with a lot of hassle, a bit of lost money and a potentially damaging effect on your eBay business.

Make sure your eBay wholesale supplier delivers the products and keeps to their promises!

Secondly, make sure the selling prices of the wholesale products are profitable. This is quite an obvious consideration, but you would be amazed how many eBay sellers fail to spot profitability.

To ensure the prices of the wholesale products are profitable, you must do this:

First, look at the prices the wholesaler is charging and incorporate the postage cost. For example, let’s say the price of 20 DVD’s is $100 and postage is $1 per DVD. That results in a total cost of $120.

Now, we go to eBay, type the name of the DVD title, select completed listings and analyse the final selling prices of this DVD. We’ll say for this example that the DVD sells for $10.

Now you need to consider the eBay and paypal fees. We’re going to list each DVD as a separate auction and we’ll say it costs $0.75 per listing. We’ll also estimate that each DVD will sell for an average of $10 so the final value fees are $0.50 per sale. The buyer pays through paypal which will take another $0.50 of the final price.

So now we do the maths:

All 20 DVD’s sell at $10 each = $200 in sales
The cost of eBay insertion, final value and paypal fees are $1.50 per item so all 20 items = $30 cost

That equals a profit of $170 however we still have to subtract the total cost of purchase from the wholesaler which is $120, so that leaves us with a profit of $50.

You should also consider costs in terms of time and packaging costs and whether it is worth the trouble and effort.

Once those two steps have been evaluated, go ahead and begin sourcing products for your eBay selling business.

Now, where can you find these wholesale suppliers?

You have two options:

You can spend a great amount of time and find a few wholesale suppliers, but if you can find them then so can many others and these may not be the best wholesalers to locate.

Alternatively, you could purchase access to a wholesalers and dropshippers directory. I have paid for access to a number of wholesale directories, some I recommend with a passion, and some I do not recommend at all.

The best one I have had access to is DropshippingWholesalers.com and one that I strongly do not recommend is Salehoo.

It’s up to you how you locate your wholesaler or dropshipper, but what I do know is that it’s one of the most important parts of beginning your eBay business.

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