Selling electrical goods may have tight margins but if you have a good source and able to match or beat other sellers prices then it can be worth while. It seems that the key to selling online is being able to sell in quantity as fast as possible not making a killing off a few units. Electrical goods appeal to most people because they sell fast and I think people like the idea of selling iPods (all the most wanted items). If anyone can stick at it good on them!
eBay seems to be the most popular market place for most people starting out and despite the high listing fees it does have great benefits. It would be hard to sell 50 iPods on your own website in two weeks, but pretty sure it could be done on eBay.
Having dealt with a few suppliers in mainland China we were surprised at how low there pricing was compared to the prices we had been paying before. Not one supplier we can across sold any branded products. Car Audio has always appealed to me and we found a whole range of manufacturers where in a lot of cases you could be making £50/unit and that was on eBay after VAT etc. Its confusing why people don't take these routes and not just sell the typical product, where you must compete with all the HK sellers.
In theory I can't talk I sell games and will supply iPods, PS3's etc. on request. If your wondering why this is because there is a wholesale market for it, we have a variety of legitimate suppliers with good prices giving us the opportunity to sell at wholesale. We do sell on eBay (this is usually handled by my partner) where we do sell games but have experimented with different niche products. If I tried to sell 50 solar powered garden lights on here, what do you think the response would be? behind the forums there are many 'BIG' sellers that don't sell on this forum for either two reasons they keep there products to themselves for it to remain niche or they don't think there would be a market for it. This is just my opinion not sure what your feelings are about this. I have seen examples of this on the forum a niche item was available to me at around 3/4 of the average eBay price, after a few weeks for-sale on the forums the market was over-crowded and there had been a dramatic decrease in pricing.
If you have the idea then go for it.
www.made-in-china.com (this website is great for new suppliers of such products) When we have the £10K together we are getting a production run of in car DVD players we can even have our own logo on the unit itself and on the packaging, free of charge.