This is my first article guys so be kind.
My Advice to New Wholesalers.
At least ten people join Thewholesaleforums everyday - many of them complete novices looking to earn a 'few bob'. Of those ten people, around half will want to deal in Branded Electronics (Nintendo Wiis, Playstations, Ipods and Iphones etc.)
Many people (myself included) have asked themselves why - Why would you want to in Ipods, Games Consoles etc. when the market is so saturated ? The answer is surprisingly simple: Branded Electronics are the products that everyone wants. Few modern children entertain themselves by reading or playing board games. The vast majority spend their time watching T.V or playing their games consoles. Most children will have at least one console - many will have more.
The Nintendo Wii was by the far the most popular Christmas present for children under 16. One in five children received an Nintendo Wii. Wii's sold up for up to £3000 on Ebay. This was more than 16x the RRP of £179.99. Ebay records all keywords entered into its search box. These are categorised and the most popular make their way into Ebay Pulse. Ebay Pulse records the Top Ten keywords entered into Ebay's searchbox. For the best part of a year the Nintendo Wii has been at the top of Ebay Pulse. (
http://pulse.ebay.co.uk/. Notice the top 6 searches are games consoles/Ipods.)
You may now be thinking: 'Wow, if Branded Electronics are that popular, I can easily make a living out of them.' This is a popular misconception. New sellers will struggle to make anything more than 5% on branded electronics; Many will make much less. Few wholesalers will make a living through exclusively selling branded electronics. Even major supermarkets only make around 15-20% on Consoles/Ipods and many of them will be buying them in the thousands.
A warning: 95% of Chinese Scammers will be offering branded electronics. China has no authorised games console wholesalers - all Chinese 'suppliers' offering consoles, Iphones and branded mobile phones will be scammers who will not send you any goods you purchase.
If you were to approach a wholesaler and ask for a quote for ten Nintendo Wii's, you would probably receive an Invoice for £1800 - which is around the RRP. You may then choose to sell them on Ebay. If you are lucky, they may sell for £185.00 each. This is a profit of £50 for an output of £1800. You have made around 2.5%.
Instead, you could spend your £1800 on the wide variety of gadgets, CCTV equipment and other highly profitable products sold on the forum and by other wholesalers. A real life example would be the Satellite Navigation systems currently being sold by Greedyboy (Dean). If you were to buy the price would be around £410 (or £82 each) including delivery and taxes. These systems sell for £109 + delivery on Amazon and sell for similar prices on Ebay. You could easily make a £25 on each of these systems. That's a £125 profit on a purchase of £410; believe me, this is pretty darn good.
My advice to new sellers is simple. Find a niche market - preferably a niche market which you are knowledgable about. It also helps to stick to products where your mark-ups are 15% or more. The above rule applies especially when selling products with a market value of £100 or less. You need to think outside the box; creative ideas can make you a lot of money !
My last and most important piece of advice is to stay well away from branded electronics
.
My Two Cents On Business and Branded Electronics
). It took a while for me to realise just how dismal the profits were.
Linear Mode
November 2008
