Sunday, January 23, 2000

Profits are increasing just from wholesaler loyalty !

This is really cool and it makes sense, the more you sell the cheaper your wholesale prices get. I received an email from our favorite wholesaler this week and it went like this.

Hi Alison !

Thanks to your ongoing order volume, you've just leveled up
Your new discount level : Level 4 prices!
What's the advantage?
-Better prices on all products, effective immediately!
-After you login you'll see your personal prices for smaller quantities are now lower... for all products, forever.
Sourcing Other Products

As a Level 4 buyer, it's clear you are in a strong position to market your products and shift a substantial volume of sales. We are in a unique position, with bilingual sourcing experts working here on the ground to source the latest cool hi-tech products from the factories of southern Mainland China and Hong Kong.
Why not put these two strengths together?
The chances are, you've seen products that you'd love to sell, and know you could profit from... but they're not available from us.
Just let us know what other products you need!
We will actively follow up any product sourcing requirement you have.

This is great news as it serves many purposes
1) Margins are instantly increased for the obvious reason of cheaper stock outlay.
2) They now offer to source products not offered or easily obtainable to the general public.
3) We can now negotiate better shipping deals as we have some leverage over the supplier, ie they don't want to lose a valuable customer and they all jack up the shipping costs to some degree.
4) You can now get 1 sample item to try out for the same price as if you bought 100 in wholesale.
5) The benefits we now enjoy from this one thing more than cancels out any money eBay and paypal robs from us, as compared to when we first started out.

The downside is we had to spend 50k USD with them to get to this point, but keep in mind this only took 4-5 months of hard selling but it does get easier. I think the best advice I can give is to TAKE ACTION! Stick it out in the beginning, even if profits are low, as it does improve over time, sometimes exponentially. Just get started and learn as you go sometime by trial and error. Ignore all of the negative comments I see around the net about making money on eBay. It's not dead and it can be very lucrative. My next goal is $1000 a day and I have no doubts it can be done, my current record for a day is $450 but honestly it can vary dramatically. Some days are duds, but always seem to manage at least $100 profit on a bad day. I do believe though that a private sales website is a good thing in the long run, I should have mine up soon and will post links.

BTW if any one wants to add their own constructive comments, questions or experiences to this Blog, feel free.

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  1. Great job and congratulations!
    I'm located in Europe and the import tax is very high so much so it's hardly profitable if I import the products from Asia. How do you handle the taxation and custom issue? Is there anything one has to look out for?

  2. Hi Kevin, In Australia we also have high import taxes but only if your imported products are over $1000. Anything over that and you pay 10% GST and 5% Duty. I think GST is called VAT in some countries. On the flip side can't you claim these charges back as a tax duduction if you have a business.
    At the moment we only import packages under $1000 , spaced a few days apart. Customs can hold anything for 48 days for no reason, so you just make sure 2 packages don't arrive within a 48 hour window at the same customs deptor they add the 2 values together.

    Hope this helps

  3. Thanks for the advice. You are so lucky to be located in Australia. The custom in my country will charge 19% VAT plus up to 14% import tax.

    What is the profit margin you look for when sourcing the products from Asia? In your opinion, is Salehoo or WB better in terms of product selection and quality?

  4. Hi Kevin , That is a tough one , but look at it this way. If you have to pay 19% Vat and 14% import tax, so do your competitors :)

  5. Hi Rick,

    I have noticed that this blog has not had much content in recent times. I have recently started hitting ebay hard as well as joining with another extremely successful ebayer to start some new websites and also continue ebay sales. Id be very interested in speaking to you if you are still selling online. We may be able to compliment each others work.

    Shoot me an email at Look forward to hearing from you soon


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