1. Speak to our customer support team live today
    Dismiss Notice
Dismiss Notice
Thanks for visiting The Wholesale Forums! Register for FREE today and gain access to more information. Sign up with Facebook, Twitter, or Google.

Profit Margins

Discussion in 'China Sourcing' started by stuart63, Jan 29, 2017.

  1. stuart63

    stuart63

    Joined:
    Mar 30, 2010
    Messages:
    19
    Hello
    I have been toying with the idea of trading on eBay for quite a while now mainly as a side line to supplement my wages from full time job.But i ultimately would love to build things up as the whole thing does interest me
    I have thought about and looked at different avenues to go down but i understand that you should go with the strategy that interests you the most so i therefore want to by new goods to sell.
    I initially looked at buying electrical goods from UK wholesalers but found that the profit margin was so minimal as to make it not worth my while. Maybe that was due to me not finding the right wholesaler but i found it difficult to find the few i did
    After further research i am now interested in importing from China.
    I have been looking at what i would say are my niche products. I have looked at products that sell reasonably well on Ebay and on the occasions i can find a supplier on Alibaba i again find the profit margin is tight
    As an example i have looked at a fitness tracker, After eBay fees postage and packaging i may make £1 on a product i have paid just £15 with shipping for and that's not taking into account any tax i may have to pay
    Maybe i'm being greedy?? But i haven't got a great deal of cash to splash out on start up and i'm looking to start small and gradually build things up which i haven't much choice about but that also excites me and keeps me interested in the whole process
    What sort of profit margin should i reasonably expect on products that i would be looking to sell in the £10 to £20 range?
    I would also be grateful for any pointers to sources for research as i don't personally know anyone who trades on eBay. Apart from this Forum I seem to do most of my research on Youtube which may or may not be the best way
    Any help/tips would be appreciated
  2. gracie1985

    gracie1985

    Joined:
    Dec 3, 2016
    Messages:
    33
    Hey!
    I had the same desire to (find UK wholesalers / try to import things from China) and sell online.
    At first I looked at eBay but it's like the entire world was selling on there, even the people from China with their small print about it possibly taking weeks to deliver and you may or may not have to pay tax on the item when it gets to you.
    So I moved over to Amazon but to be fair after browsing through sellers most of them had registered address in China. I happened to have some left over ladies' wallets. which I had imported from China (whilst I was working in a tax free country) so I sent those in under an existing listing and they sold because I was cheaper and the existing seller was greedy (funnily enough a Chinese seller) and war broke out on Amazon with me getting weekly threats to remove my item because according to the the existing seller, my generic item was breaching their trademark (it wasn't). Anyway after all that the profit was around £2-3 and I couldn't buy more wallets because now they would be delivered to the UK and the added tax meant 0 profit. There is also the fact that eBay had the wallets and they were cheaper than Amazon so I'd just make a loss. Another problem with import from China is that you have to buy in bulk, spend quite a bit on samples, your'e not sure if your bulk buy will be good quality, the long communication route with the supplier, their prices being not cheap enough to make profit after all other costs and the list goes on. I looked into UK wholesalers for perfumes and after registering for multiple trade accounts I found their 'discounted' prices to be either higher than Amazon or not cheap enough to make anything after Amazon fees. It's been a bit disheartening to be honest and no one is going to help. There are lots of videos on YouTube 'How I make $10,000/month selling on eBay/Amazon, blah blah' Lot's of webinars with one or more person trying to sell you software like Terapeaks, JungleScout, ASINinspector, Amz Tracker etc. It's pretty crowded out there so for me it's not been an easy journey. I've given up for now but I am off to the spring fair in Birmingham next week to see if I find any genuine UK wholesalers / suppliers of... any category really and just keep checking online to see if it's viable. Anyway rambling, it's hard so good luck!




    Sent from my iPhone using Tapatalk
  3. stuart63

    stuart63

    Joined:
    Mar 30, 2010
    Messages:
    19
    Hi Gracie

    Thanks for your reply and advice
    I'm starting to see what you mean but i'll keep plugging away at it for a while as i do find it interesting whilst i am learning (or trying to learn)
    Like you say, it is hard to find help. I really could do to meet someone who trades om eBay and learn from them without stealing any of their ideas which i would never do... I'm quite sure about by niche if nothing else

    Thanks again and Good luck
  4. Cody

    Cody

    Joined:
    Feb 17, 2016
    Messages:
    1,220
    There are a ton of people on here that can help to advise where to begin on eBay - we even have a ton of information in our eBay section and our blog.

    You should also consider taking a look at events popping up from @Online Seller UK who are specialised in Amazon, eBay and eCommerce.
    stuart63 likes this.
  5. stuart63

    stuart63

    Joined:
    Mar 30, 2010
    Messages:
    19
    Thanks for the pointers Cody
  6. consultant

    consultant

    Joined:
    Jan 17, 2008
    Messages:
    830
    Before you start investing in importing, get the ball rolling using local suppliers. yes, you margin will be lower, but the potential cost of errors, mistakes and failures will also be low.

    When you start building volumes, then take the direct sourcing route.
    gracie1985 likes this.
  7. gracie1985

    gracie1985

    Joined:
    Dec 3, 2016
    Messages:
    33
    Where to find local suppliers? There is a website called Worldwide brands that charge $300 for a verified list of suppliers / wholesalers :-( and so far from google search and trade account applications I am only finding prices higher or equivalent to Amazon so no margins at all


    Sent from my iPhone using Tapatalk
    Cody likes this.
  8. liamhawes

    liamhawes

    Joined:
    Apr 19, 2010
    Messages:
    2,098
    I don't think I'd ever pay for a list of suppliers myself. Sometimes if I spot an item I want to sell, I just do a reverse image search for it on google.
    gracie1985 likes this.
  9. Cody

    Cody

    Joined:
    Feb 17, 2016
    Messages:
    1,220
    You can pay for a list if you want, however it's not certain if those lists will contain verified suppliers. However you can do what @liamhawes says and do a reverse image search, or do a local keyword search as means to find local suppliers too.
    gracie1985 likes this.
  10. gracie1985

    gracie1985

    Joined:
    Dec 3, 2016
    Messages:
    33
    Is that with the assumption that everyone is using the same images?


    Sent from my iPhone using Tapatalk
  11. liamhawes

    liamhawes

    Joined:
    Apr 19, 2010
    Messages:
    2,098
    It's the assumption that a lot of the sellers use the wholesalers images that they provide.
    gracie1985 likes this.
  12. Online Seller UK

    Online Seller UK

    Joined:
    Jan 4, 2016
    Messages:
    111
    Profit Margin are very much individual choice for any business. Some business startup with very low profit margin until feedback is builtup. So, i think it is best to keep it to the level you are comfortable with. At the end of the day even if someone says stay with 20% it may not work for you because of competition.
  13. stuart63

    stuart63

    Joined:
    Mar 30, 2010
    Messages:
    19
    " I am only finding prices higher or equivalent to Amazon so no margins at all"


    Sent from my iPhone using Tapatalk[/quote]
    That's exactly the problem i am finding...Think we are both missing something somewhere :)
  14. stuart63

    stuart63

    Joined:
    Mar 30, 2010
    Messages:
    19
    I understand your point but, so far, i'm finding that prices on eBay are matching the prices i am seeing from wholesalers or very close which makes it not worth while after eBay fees etc
    I'm not being greedy or have inflated expectations...Just looking to supplement my wage from full time job and also finding the whole thing interesting and hopefully rewarding
  15. beacon hill

    beacon hill

    Joined:
    Jun 28, 2010
    Messages:
    1,860
    "so far, i'm finding that prices on eBay are matching the prices i am seeing from wholesalers or very close which makes it not worth while after eBay fees etc"

    Then cut out the wholesaler (middle man) and buy from a more direct route or negotiate higher volume price.
    As the saying goes, If it was that easy everyone would be doing it
Back to top

Share This Page