Importing Products to sell on eBay
by Nowshade Kabir
Published on this site: July 13th, 2005 - See
more articles from this month...
The interesting thing about online buyers is they are extremely
price sensitive. A survey done by Forrester Research shows
that 73 percent of surveyed online buyers expect prices on
the Internet to be cheaper than in stores. No wonder auction
marketplaces are thriving. Among the most popular auction
marketplaces growth of eBay is especially notable! Its market
share is growing at roughly twice the pace of the over all
market. So, it's only natural if you like many other wannabe
entrepreneurs thinking seriously to start an eBay business.
Say, after spending long hours on the eBay and doing much
research offline and online, you finally have come up with
a niche category of products to sell. But, there is one little
problem! You don't have a slightest clue where to get regular
supply of this product for wholesale price. Often, entrepreneurs
with great product ideas fail to materialize their dream business
plan just because they are unable to find a right supplier.
How to tackle this problem?
Finding a local supplier
Success in any trading business depends not only on how good
you are in selling, it also relies greatly on your ability
to source the product at right cost. If you have a fairly
large list of products that you are considering to work with
you have a variety of options to choose from. You may start
your eBay auctioning business based on local liquidators,
closeout dealers, government auctions, newspaper classified
or Drop-shippers http://ezine.rusbiz.com/article/39.
But to start a real niche business you need to find a constant
source supplier, which could be a manufacturer, a distributor
or a wholesaler. Obviously, Internet is the easiest place
to get the initial contact information. Try http://www.thomasnet.com/
or http://www.tgrnet.com/
- both websites are good information sources for industrial
products manufacturers.
Bear in mind that many manufacturers simply aren't able to
handle small orders and don't sell products directly to retailers.
Some times, the minimum sales lot is way too big for a small
start-up company to manage. However, even if the manufacturer
does not sell directly to retail levels, they will provide
you with information on their products and refer you to their
wholesaler or distributor companies, which will be in a position
to cater your needs.
For some category of products, your best option is to attend
trade or industry shows in order to locate a supplier. Check
out websites of some exhibition centers in your vicinity and
find one or two trade shows of your area of interest. Make
sure that participants of the trade show are distributors
and wholesalers as oppose to large manufacturers. After all,
you need to find a supplier who will agree to work with your
initial small orders.
Trade journals or publications of your related field also
could be a great source in your quest to find a supplier.
Trade journals publish information on industry trend, articles
on major players, various industry related event schedules
such as trade shows, and often carry classified sections.
Sometimes, they also publish specialty issues such as a buyer's
guide or a who's who issue. You may consider getting those
issues by contacting the publishers.
Professional and trade associations similar to local chamber
of commerce and other groups offer a variety of services,
which are extremely useful to members and general people a
like. Promotion of the industry and its products and referral
services for buyers trying to find specific products are some
of the services that they offer. You should not hesitate to
contact these organizations for help.
Importing
Competition in world's largest electronic marketplace is
fierce! If you have to buy products from a middleman, you
may find that your prices are not workable at all. What to
do? Since most of the consumers products are imported any
way, you may consider outsourcing your product from a foreign
country. Today, thanks to globalization importing products
are no longer as difficult as it used to be! If you are trying
to buy a labor-intensive product, the best places are probably
China – which is the hottest at this time, India, Thailand,
Vietnam, Bangladesh and some other Asian countries. If you
are looking for medium quality electronics and computer parts,
your options are China, Taiwan, Korea, Singapore, etc. For
high-end designer products Italy, Germany and France are your
best bet. For intellectual property related products, Russia
and other Eastern European countries are still a paradise.
There is a good chance of finding a supplier through online
B2B portals. If you are looking for a supplier from China
you may try www.alibaba.com
and www.globalsources.com.
Two of the largest trade leads aggregators on the Internet.
For products from India you may try searching the database
of both www.indiamart.com and www.trade-india.com.
For products from Russia and other CIS countries www.rusbiz.com
is a great option.
Here are the steps you must take in order to import products
successfully:
- Locate several suppliers either through online resources
or by contacting Trade Commissions of respective countries.
- Contact the suppliers and see if they are in a position
to deliver the right product. Make sure that the suppliers
are not your direct competitors. Many foreign suppliers
are actively selling products through eBay.
- If you find their price and quality of the product are
acceptable get several samples. It is very important to
give them an exact copy of the product you are looking for.
Without a prototype you might end up getting something far
different than you expected.
- Work out your cost, which include buying cost, packaging,
shipping, insurance, customs duty, excise duty if any, financing
and handling charges, etc. You may also incur other expenses
depending on products and your location.
- Check out your supplier. If possible make a trip to visit
the supplier. Ask for references. Contact their bankers
if necessary. Importing requires absolute due diligence.
- Check with a logistics consultant about shipping and
exporting rules of the country.
- Contact a customs broker to verify latest duty and other
regulations related to importing of this particular product.
- Don't forget to consider product life cycle, shipping
time, seasonality of the product and other characteristics
specific to your product.
Importantly, do your homework! You can sure make money by
importing and selling goods on eBay. Thousands are already
doing this. But, the key to success relies on your entrepreneurial
spirit, due preparation, sound judgment and hard work. If
you think you are ready, go for it!
Nowshade Kabir, is the founder, primary developer
and present CEO of Rusbiz.com – a Global B2B Exchange
with solutions to create e-catalog, Web store, business process
management and other features to run a business online. You
can read various articles written by Nowshade Kabir at http://ezine.rusbiz.com
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