|
Be realistic when selling on eBay....
...... industry. You simply cannot purchase new release DVDs at 50% discount and even if you could, it wouldn't be long before prices were forced down as there is always someone willing to sell a little bit cheaper than the next man.
It isn't just DVDs that fall into this category. Take mobile (cell) phones. Here in the UK you can walk down just about any high street and get the latest phones either free or for a minimal token payment. The stores are relying on making their money from the line rental contract that you will have to sign in order to get the phone. Of course, the actual cost of the phone is not free - most new mobiles are actually worth '200 or '300 which means that if you want to buy a batch of phones at wholesale, you are going to be looking at a pretty high unit cost. As with most electrical products, the market is competitive and prices have been forced down which means that the difference between your wholesale buying price and your retail selling price is minimal.
There are numerous products that suffer from the same market conditions as DVDs and phones and new/small traders really should avoid trying to sell such items at all costs because it will usually be frustrating and ultimately not financially rewarding. When trying to decide what products to sell, you need to be thinking about the type of market that a particular product is sold in. If there are already numerous sellers and many large companies selling at considerable discounts this is far from ideal. The exception to the rule is if you are able to add value in some way to make your 'offering' more unique. I wrote about adding value last year in one of my newsletters - you can read it here: http://www.thetraderonline.com/jul2204.html
At the end of the day, it is all about research, being realistic and having an understanding of the market that you want to operate in. Whilst it would be great to be able to buy and sell new release DVDs (or whatever) all day long, doubling your money every time, I am afraid that this is just not going to happen.
About the Author Richard Grady has been helping ordinary people earn online since 1998. He writes a free newsletter which is published every two weeks. To subscribe (and claim your free gifts), visit: http://www.thetraderonline.com/newsletter.html
|
