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keeping in mind that you as the whole seller are not nessisarily selling whole sale ON ebay

2006-11-27 13:46:03 · 2 answers · asked by alexander 1 in Business & Finance Small Business

2 answers

Hi,

I think this would be extremely difficult to maintain over the long term. The profit margin is based on two principles:

1. Amount of Value Your Business Adds
2. Barriers of Entry to Prevent Competition

As described in the question, you are not adding significant value. Perhaps importing the items in bulk and redistributing to the wholesalers, but very little value add. However, your entire markup (ie your profit) removes value from the chain.

Warren Buffet always stresses the importance of a sustainable competetive advantage with any successful business. Unless you have an exclusive contract, patent, or some other means of protecting your source, then I assure you that some of your downstream powersellers with look upstream and try to remove you from the loop. If they can successfully work with your distributor, they can keep all/most of the profit for themself.

In closing, it is still easy to be a power seller on ebay. It is also easy to wholesale things on ebay, I just think you are targeting the wrong audience. Powersellers are there to make money, and think in terms of business. Average customers are more concerned with purchasing a few items at the best possible price, so you should have much greater success with that approach.

Good Luck,

2006-11-27 19:21:11 · answer #1 · answered by Leo R 2 · 0 0

Ebay has grow to be a brutal cutthroat market. 5 years in the past it replaced right into a lot extra accessible, yet with the spreading of the get wealthy quick on ebay fantasy each market on ebay has grow to be flooded & each organization tries to undercut anybody else, making expenses plummet. upload to that the ever dwindling customer pool, who get more cost-effective & more cost-effective daily, and its grow to be very complicated to make any income. in spite of you do, ascertain you study what expenses the products you want tl promote are going for and the promote through price. be particular it is going to likely be worth your at the same time as even with each thing of your expenditures are factored in.

2016-10-16 10:48:06 · answer #2 · answered by pipe 4 · 0 0

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