Importing Products to sell on eBay by Nowshade Kabir
The interesting thing about online buyers is they are extremely price sensitive.
A survey done by Forrester Research shows that 73 percent of surveyed online
buyers expect prices on the Internet to be cheaper than in stores. No wonder
auction marketplaces are thriving. Among the most popular auction marketplaces
growth of eBay is especially notable! Its market share is growing at roughly
twice the pace of the over all market. So, it's only natural if you like many
other wannabe entrepreneurs thinking seriously to start an eBay business.
Say, after spending long hours on the eBay and doing much research offline and
online, you finally have come up with a niche category of products to sell.
But, there is one little problem! You don't have a slightest clue where to get
regular supply of this product for wholesale price. Often, entrepreneurs with
great product ideas fail to materialize their dream business plan just because
they are unable to find a right supplier. How to tackle this problem?
Finding a local supplier
Success in any trading business depends not only on how good you are in
selling, it also relies greatly on your ability to source the product at right
cost. If you have a fairly large list of products that you are considering to
work with you have a variety of options to choose from. You may start your eBay
auctioning business based on local liquidators, closeout dealers, government
auctions, newspaper classified or Drop-shippers (http://ezine.rusbiz.com/article/39).
But to start a real niche business you need to find a constant source supplier,
which could be a manufacturer, a distributor or a wholesaler. Obviously,
Internet is the easiest place to get the initial contact information. Try
http://www.thomasnet.com/ or http://www.tgrnet.com/
- both websites are good information sources for industrial products
manufacturers.
Bear in mind that many manufacturers simply aren't able to handle small orders
and don't sell products directly to retailers. Some times, the minimum sales
lot is way too big for a small start-up company to manage. However, even if the
manufacturer does not sell directly to retail levels, they will provide you
with information on their products and refer you to their wholesaler or
distributor companies, which will be in a position to cater your needs.
For some category of products, your best option is to attend trade or industry
shows in order to locate a supplier. Check out websites of some exhibition
centers in your vicinity and find one or two trade shows of your area of
interest. Make sure that participants of the trade show are distributors and
wholesalers as oppose to large manufacturers. After all, you need to find a
supplier who will agree to work with your initial small orders.
Trade journals or publications of your related field also could be a great
source in your quest to find a supplier. Trade journals publish information on
industry trend, articles on major players, various industry related event
schedules such as trade shows, and often carry classified sections. Sometimes,
they also publish specialty issues such as a buyer's guide or a who's who
issue. You may consider getting those issues by contacting the publishers.
Professional and trade associations similar to local chamber of commerce and
other groups offer a variety of services, which are extremely useful to members
and general people a like. Promotion of the industry and its products and
referral services for buyers trying to find specific products are some of the
services that they offer. You should not hesitate to contact these
organizations for help.
Importing
Competition in world's largest electronic marketplace is fierce! If you have to
buy products from a middleman, you may find that your prices are not workable
at all. What to do? Since most of the consumers products are imported any way,
you may consider outsourcing your product from a foreign country. Today, thanks
to globalization importing products are no longer as difficult as it used to
be! If you are trying to buy a labor-intensive product, the best places are
probably China - which is the hottest at this time, India, Thailand, Vietnam,
Bangladesh and some other Asian countries. If you are looking for medium
quality electronics and computer parts, your options are China, Taiwan, Korea,
Singapore, etc. For high-end designer products Italy, Germany and France are
your best bet. For intellectual property related products, Russia and other
Eastern European countries are still a paradise. There is a good chance of
finding a supplier through online B2B portals. If you are looking for a
supplier from China you may try www.alibaba.com and www.globalsources.com. Two
of the largest trade leads aggregators on the Internet. For products from India
you may try searching the database of both www.indiamart.com and
www.trade-india.com. For products from Russia and other CIS countries
www.rusbiz.com is a great option.
Here are the steps you must take in order to import products successfully:
. Locate several suppliers either through online Subscriptions or by contacting
Trade Commissions of respective countries.
. Contact the suppliers and see if they are in a position to deliver the right
product. Make sure that the suppliers are not your direct competitors. Many
foreign suppliers are actively selling products through eBay.
. If you find their price and quality of the product are acceptable get several
samples. It is very important to give them an exact copy of the product you are
looking for. Without a prototype you might end up getting something far
different than you expected.
. Work out your cost, which include buying cost, packaging, shipping,
insurance, customs duty, excise duty if any, financing and handling charges,
etc. You may also incur other expenses depending on products and your location.
. Check out your supplier. If possible make a trip to visit the supplier. Ask
for references. Contact their bankers if necessary. Importing requires absolute
due diligence.
. Check with a logistics consultant about shipping and exporting rules of the
country.
. Contact a customs broker to verify latest duty and other regulations related
to importing of this particular product.
. Don't forget to consider product life cycle, shipping time, seasonality of
the product and other characteristics specific to your product.
Importantly, do your homework! You can sure make money by importing and selling
goods on eBay. Thousands are already doing this. But, the key to success relies
on your entrepreneurial spirit, due preparation, sound judgment and hard work.
If you think you are ready, go for it!
About the Author
Nowshade Kabir, is the founder, primary developer and present CEO of Rusbiz.com
- a Global B2B Exchange with solutions to create e-catalog, Web store, business
process management and other features to run a business online. You can read
various articles written by Nowshade Kabir at http://ezine.rusbiz.com
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