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make more money with ebay dropshipping suppliers

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Catching the Crooks: Is Your Wholesaler Dodgy or Legitimate?
Written by © All Rights Reserved
Fleeced, ripped-off, cheated, conned. We're all afraid of losing money to wholesalers who turn out not to be the real deal. The horror stories can certainly be very off putting - especially to those just getting started. The trick is to spot it and stop it before it's too late!
So what are signs that you're dealing with a crook?
In our experience, there are 6 particular indications that you may not be dealing with a legitimate wholesaler:

The wholesaler doesn't sound business-like or professional when answering the phone. For example, he will answer with a plain 'Yes?' or 'Hello?', without identifying himself or the business name.
The wholesaler doesn't request your business license or sales tax ID during the initial contacts. Most true wholesalers will require one of these. While this is not a hugely important deal, if you are looking at dealing in large amounts you will need to get registered and should check that the wholesaler is registered as well.
The wholesaler gets shifty when you request a product sample. Most wholesaler are only to happy to offer a sample of their product (usually at a higher price) so if they do not offer this be careful and question their reasons for not offering one.
The wholesaler's claims to take a secure form of payment (credit card, Paypal etc...) but later turns around and says they only accept wire transfer or western union. Not all wholesalers that take western union and wire transfer are scammers, but this is the most common way scammers operate and you should always steer on the side of caution if you are asked to pay be these methods when not having dealt with or knowing the person first.
Their website offers no physical address or contact phone for you to get hold of them. Be blunt, ask them for a contact address and phone number and if it is ok if you come in and have a look around their offices. If they are serious this will be no problem at all for them.
They claim they don't currently have stock in and still expect you to pay up front. If this has been happening make sure you get some photographic evidence of their stock with the days newspaper or something (while this doesn't always work, it means some one must have stock that they know
Although these are not hard and fast rules, you should certainly proceed with caution if one or more of the above apply to a new wholesale contact you have made. If you have any tips to add or past experiences then we'd love to hear from you. Your experience is valuable to the Salehoo community and I'm sure others would appreciate your comments.
make money with ebay dropshipping suppliers
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Hot Wholesale Tips You MUST Follow!
Written by © All Rights Reserved
1. Thorough market research is the foundation for success
Meticulous market research doubles your chances of making a tidy profit from the wholesale goods you buy. Start off with a list of 5-10 different ideas. Then check completed listings searches on eBay to see what the item generally sells for and the sell-through rate for each one. Use Yahoo's free keyword tool [please contact me for website address] to find out how many people are searching Yahoo for your product per month. You can double this figure for Google. Add the numbers together. If there are ten thousand or more searches per month for an item, this indicates a healthy market.
2. Calculate the REAL cost of your item
One big reason why people fail at the wholesale game is that they don't do the numbers. In other words, they don't treat wholesale like a real business. To accurately discover your true profit potential on an item, you need to add the shipping cost and insurance, eBay fees (or equivalent for other advertising), Paypal and/or credit card fees (these can be a real profit killer), packaging costs and labor involved packaging, and any storage costs to the cost of your item.
3. Verify ALL suppliers found on the Internet
Getting caught out by scammers is a common stumbling block for people new to wholesale. If you are searching for suppliers off your own bat (rather than using a wholesale directory like SaleHoo), it is CRITICAL to check authenticity before making a purchase.
Always take the time to:

Check that the website gives a full business name and a registration number.
Check for a legitimate contact telephone number - this will involve ringing the number. Do not accept a mobile phone number alone. All real companies should have a land line number.
Go to [please contact me for website address] and search for the name of the website. A legitimate company will have a domain expiration date in several years time. Most legitimate companies reserve their domain names for 3-5 years or more at a time.
AVOID suppliers who won't agree to use secure payment methods such as, Credit Card and Paypal Verified.
Still uncertain? Ask other sellers what their experiences have been with the company you are interested in on eBay forums.
4. Chinese suppliers give the competitive edge
Chinese suppliers are an essential source for anyone wishing to make money selling online. Manufacturing costs are currently extremely low in China, thus it is the secret to gaining a competitive edge. Dealing with China does have risks, but these can be alleviated if you place a small order first, use secure payment methods, get shipping insurance for 110% of the cost of the items, and use suppliers with a good reputation.
5. A common stumbling block for liquidation and closeout
Always obtain the reasons for liquidation and closeout sales before you buy. Liquidation and Closeout sales can be a fantastic source for cheap products, but you usually have to buy by the pallet load and these can sometimes include broken or returned goods that aren't in saleable condition. To be safe, ask specifically whether broken items and returns are included before you buy.
6. Negotiate on shipping and save
Shipping economically is critical to importing success. Profits can easily get swamped in shipping costs, so take time to get a good deal on shipping. If possible, negotiate CIF (Cost, Insurance & Freight) or DDP (Delivery, duty paid) shipping terms with your supplier as this takes much of the risk - not to mention organization - off your shoulders. FOB (Freight on Board) is the most common shipping term, but don't be afraid to negotiate for better.
7. Drop shipping - can you really afford it?
Drop shipping sounds great in theory - someone taking care of packaging, wrapping and postage - but it can be difficult to profit from this method. Think about it, drop shipping can add another $2-10 to your costs - sometimes even 10% of the cost of the item. By the time you add in eBay fees and any other costs, you may find it is not worth it.
8. Warehouse storage checklist
Asset management is the most important consideration when locating warehousing to store your items. Believe it or not, items can go missing while in storage, causing massive disruption for you. When comparing warehouses, ask questions specifically on how you will authorize the release of stock (by phone or fax?), what will happen if you need to cancel an order, frequency of damage claims, dust management, and whether there is an area you can use to photograph items.
9. Powerseller wealth
It's a fact - eBay powersellers are able to command higher prices for their items than ordinary eBay sellers. To get the best profits on your wholesale items, you need to aim to get and maintain powerseller status.
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10. Growth with a website and eBay store
The way to increase profits from wholesale is to build your own website and/or open an eBay store. This allows you to cross sell items plus it also makes it easier for people to find what they are looking for. For example, if you sell shoes, then customers can easily navigate to browse all black shoes in size 9 and so on. Always include a sentence at the bottom of your descriptions encouraging visitors to check out your other listings - most people will.
If you are looking for genuine and trusted wholesale suppliers then look no further than Salehoo! SaleHoo's directory contains over 4000 dropship, wholesale and closeout suppliers that are independently reviewed and rated by eBay Powersellers and Industry experts. SaleHoo also purchases off them and reviews each supplier in depth afterwards.

About the Author: SaleHoo is one of the fastest growing product sourcing portals on the internet. It contains a database of drop ship, wholesale, closeout and manufacturing suppliers offering thousands of product suppliers to consumers! Located at visitors are allowed to sign up for unlimited and lifetime access to the completely searchable database of products and suppliers. The database is regularly updated, ensuring that the latest retail products are always available for purchase and SaleHoo carries the BBB Reliability Seal!
make money with ebay dropshipping suppliers
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5/25/2018 1:11:33 PM UTC