I have noticed a few posts recently from new traders who are looking to get into the "multi-billion pound video games industry"
Although I just "dabble" in the gaming market at the moment, I have been in this market place on and off for a few years and used to own a shop when I was in my late teens and early 20s and have picked up a few things along the way which I would like to share with anyone who is new to the business. Experienced traders please don't think I am trying to teach you to suck eggs.
To start with I will give you an idea of what I sell....... I buy, sell and exchange new & pre-owned Games, DVDs, CDs, MP3 players and ipods, Movie posters, Mobile Phones and Books (on line only). In a nutshell I buy, sell and exchange new & pre-owned Entertainment products.
Where to buy
There are suppliers are out there you just need to do your homework. Some of the larger suppliers I deal with, have dealt with or have accounts with are;
http://www.gem.co.uk/
http://www.centresoft.co.uk/
http://www.mystorm.com/ (Part of Changeover Ltd)
http://www.bertrams.com
http://www.gardners.com/gardners/default.aspx
These are some of the suppliers I have used in the past but not my biggest suppliers at the moment. You may need to provide trade references in order to open account with these.
However if you are just starting out, I would recommend TWF Marketplace.
http://www.thewholesaleforums.co.uk/...d-accessories/
There are some great sellers on there, all with low MOQs and all at prices that could rival any of the large suppliers out there. One point that I would like to make, don't assume that the big suppliers are the cheapest, this is not always the case.
Where to sell?
If you are new to the business or not yet trading then one of the first things you will need to think about is where you are going to sell your products. Here are a few avenues that I use, there are others, but I will stick to the main ones.
Ebay - Love it or hate it, ebay is one of the largest online market places on the world. You are unlikely to get the same exposure anywhere else on the web. The only problem with ebay is the competition is fierce and as a result margins are small. The key is to sell new titles in volume, sell pre owned and if you can get more money by selling else ware then don't bother listing them.
Amazon - Similar to eBay, Amazon gives your products huge amount of exposure. The pros........its free to list and there is no Papal to deal with. The cons..... they are notorious for holding funds for new traders who suddenly start selling high volumes and I sell less that 10% of the volume I sell on ebay.
Play - I personally don't sell on Play.com however it is something that I am looking at getting into and if your setting up a company selling games then so should you.
Local Market/Car Boot - Local markets and car boots are a great place to buy, sell and exchange new and pre owned games, consoles and DVDs. Its great for cash flow, its a great source of pre owned stock and its great fun.
Get a banner - I have a sign on my stall saying "we buy sell and exchange Games, DVDs, Blu-rRays and Mobile Phones" (You can get a banner made for next to nothing) It looks good. you can add your website address and it lets people know who you are and what your all about.
Loot/Free ads papers - The loot is a great source to buy pre owned stock such as games, consoles, DVDs Blu-Rays etc. either by placing a wanted ad or by even by looking through the listings. Its also a great place to sell games consoles (free to list, no paypal and no fees)
In store concessions - Another thing I do is sell goods in local retail stores. I offer the stock free of charge and pay the store owner a commission on every sale. Its a great little cash cow that requires very little maintenance.
Your own website - I don't have my own site at the moment (its under construction), however if used alongside the above methods, this can be a great asset to your business. Something as simple as a promotional leaflet in all of your on line orders and adding your website address to your banner on your market stall can generate traffic to your site.
Sell both new & pre owned
If you are already trading then you will know that the margins on new games and DVDs are not great. So why bother? Well first of all there is a huge demand for them and secondly they are worth much more than their cash value.
For example I can buy a new release for £31 that will have an RRP of £39.99. Because I am selling on the market I would usually sell it for £35 (unless its a hot title). I can either sell the game for its cash value of £35 and make £4 profit. or I can exchange it for as much as £50 worth of pre owned games.
How? Well I offer £3 trade-ins on all games (so if I sell a game for £10 I will offer £5 cash or £7 on part ex). If someone wants to trade in 5 games that I would sell for £10 each, I would offer them £35 of stall credit. Offering trade ins is a great way to generate repeat custom too.
Buying Pre-owned stock
Some traders have fixed, ultra low buying prices when buying pre-owned stock. In order to get quality titles, you have to be prepared to pay a little extra. When selling, price isn't always king. You can get away with charging a little extra by offering a quality service. However when buying, cash is king. Its worth paying top prices and getting quality stock.
When part exchanging stock, however, it does not matter how much you offer if you don't have the titles your customer wants. The key to trading successfully on the market can be summed up in 3 words....... Choice, Value & Service. If you can offer all three then you will go far.
"People are selling them for less than I can buy the for"
In this case my advice would be BUY THEM. If Gamestation or HMV are selling a brand new game with a RRP of £39.99 for just £19.99 as a "Deal of the week" and the wholesale price is £34 inc VAT then buy some, wait until the game goes back up to £39.99 and then sell them for £30 each. I have lost count of the times that I have done this.
A great site to search great retail deals is
http://www.hotukdeals.com/
Postage - Recorded Vs Standard Postage.......
Because the margins on games are so small, one way to maximise profits would be to keep costs to a minimum.
You will notice some sellers on ebay offering 1st class recorded delivery on everything as standard. I always give the option of recorded and automatically send high value items recorded but because I am sending a lot of smaller, cheaper items out, sending them all recorded can work out very expensive for example
sending 100 DVDs or games (150gms) @ 78p (2nd class) = £78
sending 100 DVDs or games (150gms) @ 90p (1st class) = £90
sending out 100 DVDs or games (150gms) @ £1.65 (recorded) = £165
Even if 5 go missing and you have to refund or replace £25 worth of stock it will still be cheaper to loose the stock than send each item out recorded. (While I am on the subject of postage, I print my own postage from the Royal mail website. Looks slightly better than writing by hand (in my case anyway). Saves a lot of time too)
To Sum Up.....
So to sum up, there is money to be made, its not always in the most obvious place. There are suppliers out there, but if your expecting to pay £20 for new releases then forget it. Don't dwell too much on what everyone else is doing, just concentrate on offering the best possible service you can.
Thats all I can think of for now but may edit in the future.
I wish you all the very best of luck
A Quick Guide To Selling Games/DVDs
Linear Mode
November 2009
