Many people make the mistake of confusing ecommerce on eBay with ecommerce on a commercial retail site, such as Amazon.com or Bestbuy.com or any number of other retailers selling their own physical products. However, the eBay environment and online retail environment are very different. Perhaps in the early days of eBay this distinction did not matter, but eBay is a highly sophisticated selling venue and understanding your selling environment makes a big difference.
What Does This Mean? Let Me Explain, eBay is a distinctly different kind of selling environment than that of an ecommerce website that you run from your own domain name on your own hosting. This means that eBay is a wholesale selling environment, and that the typical ecommerce site, such as discovery.com or barnesnoble.com is a retail selling environment. This can make all the difference in terms of how and where you get your products. This is a point that many people overlook and it can kill an eBay business.
Again, on eBay the price of most goods are either at or below wholesale. For you, this means that if you purchase your items in small lots or single units from a wholesaler, it will be difficult for you to compete with other sellers and make a profit unless there is very little or no competition and your item is popular. This fact makes it especially difficult to make a profit selling mass market consumer electronics because the competition is so fierce and profit margin so narrow.
Don't despair. Items that sell poorly in one kind of selling environment may sell very well in a different kind of market. The plasma TVs that you can't make a profit on with eBay may sell very well from your own ecommerce site when you target them to a local and regional customer base. Again, the reason the plasma TV or laptop may sell better on your ecommerce site is because you retailing the item and may be able to compete with other online and offline retail businesses. Also, keep in mind that not everyone likes to shop on eBay, and those buyers won't mind paying your slightly higher (though discounted) retail price.
This information may be in conflict with much of the other talk you find on the Internet, but keep in mind that product sourcing to new eBay sellers is big business, and big warehouse drop shippers have a vested interest in convincing you that you can make a profit with their goods. Drop shipping can be especially dicey because you are often buying your goods from businesses who themselves are also retailers, and so the costs of drop shipping further reduce your margin for profit. It isn't that you can't succeed with drop shipping, but you do have to be aware of the market you are selling in. You will need to find the right product that can compete on eBay and provide you with sufficient profit to make it worthwhile.
Moreover, sites like doba.com, dropshipdesign.com and so forth, are not true wholesale sites. These are essentially retail sites offering steeply discounted goods. They are legitimate and make it easy to start selling online, but are they best for eBay? In my opinion, your chances for success with this particular model will generally be greater if you pursue an independent ecommerce option.
What Does This Mean? Let Me Explain, eBay is a distinctly different kind of selling environment than that of an ecommerce website that you run from your own domain name on your own hosting. This means that eBay is a wholesale selling environment, and that the typical ecommerce site, such as discovery.com or barnesnoble.com is a retail selling environment. This can make all the difference in terms of how and where you get your products. This is a point that many people overlook and it can kill an eBay business.
Again, on eBay the price of most goods are either at or below wholesale. For you, this means that if you purchase your items in small lots or single units from a wholesaler, it will be difficult for you to compete with other sellers and make a profit unless there is very little or no competition and your item is popular. This fact makes it especially difficult to make a profit selling mass market consumer electronics because the competition is so fierce and profit margin so narrow.
Don't despair. Items that sell poorly in one kind of selling environment may sell very well in a different kind of market. The plasma TVs that you can't make a profit on with eBay may sell very well from your own ecommerce site when you target them to a local and regional customer base. Again, the reason the plasma TV or laptop may sell better on your ecommerce site is because you retailing the item and may be able to compete with other online and offline retail businesses. Also, keep in mind that not everyone likes to shop on eBay, and those buyers won't mind paying your slightly higher (though discounted) retail price.
This information may be in conflict with much of the other talk you find on the Internet, but keep in mind that product sourcing to new eBay sellers is big business, and big warehouse drop shippers have a vested interest in convincing you that you can make a profit with their goods. Drop shipping can be especially dicey because you are often buying your goods from businesses who themselves are also retailers, and so the costs of drop shipping further reduce your margin for profit. It isn't that you can't succeed with drop shipping, but you do have to be aware of the market you are selling in. You will need to find the right product that can compete on eBay and provide you with sufficient profit to make it worthwhile.
Moreover, sites like doba.com, dropshipdesign.com and so forth, are not true wholesale sites. These are essentially retail sites offering steeply discounted goods. They are legitimate and make it easy to start selling online, but are they best for eBay? In my opinion, your chances for success with this particular model will generally be greater if you pursue an independent ecommerce option.
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