Making the Most Out of Your eBay Or Amazon Business

Global sales platforms like eBay or Amazon open a world of opportunity for business owners as well as for people just starting their online business. If you intend to start selling liquidation merchandise or wholesale electronics bought from wholesale suppliers or liquidation auctions, Amazon and eBay are great platforms to sell on because over 290 million online shoppers in the United States alone visit these sites.

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But before jumping into it, there are a few things to consider, in order to make the best out of this venture and not end up with merchandise that doesn’t sell.

Taking Advantage of the Potential Customers

With so many potential new customers, making a profit is only a matter of playing it smart. The number of online shoppers is rising, not only in the United States but in other parts of the world as well. It is expected that over 730 million new buyers will come from India alone.

What this means for you as a seller is that no matter what you sell, there is a customer base for the product. However, to ensure you make a profit, there are some guidelines that apply to both Amazon and eBay.

The goal is to do some market research and find niche markets that are short on supply. Why are these markets held in such high regard by advisors, and preferred starting point for aspiring entrepreneurs?

There are several reasons. As noted, the number of online shoppers is rising, but so is the number of sellers wanting a piece of the cake. Usually, the majority of these new businesses go straight for the most attractive markets like books, electronics and such types of merchandise. Unfortunately, the competition in such markets is so tough that barely a few make it. It is difficult to compete with the established players unless you are really investing in advertisement and stand out with quality and low prices.

Invest in Niche Markets

This is why niche markets are important. For a newcomer to the business, learning the ropes is part of the business-building process. A niche market has enough demand for a product but the competition is often limited due to the lack of supply. Once you find such a market, you get a stable income stream. Also, the profit margin does not have to be significantly cut since the competition is not as high as in some other markets.

In addition, if you provide quality products along with the service, you will build a customer base and gather experience in business leadership along the way. With your name established in a small market, reputation and customer base built, you can now expand into new markets and repeat the process all over again once you reach your desired market. The customer base and the reputation you build will ensure that you are well positioned in any market with enough demand for your products.

Once you find the market, you have to source the merchandise. Usually, you could get your items from a wholesale supplier, but if you look at the prices of merchandise sold on Amazon or eBay, the majority is already sold quite close to the wholesale price. This doesn’t leave you with much margin for profit.

Sourcing Merchandise Online

However, sourcing merchandise through liquidation companies could be a better option since you can get hold of high-quality items, with warranty, for prices below wholesale. Whichever source for your merchandise you choose, make sure it is a reputable wholesale supplier or liquidation company.

Nowadays, liquidation companies provide the cheapest merchandise. Also, reputable companies such as Direct Liquidation have joined forces with top retailers such as Walmart and Target. These top retailers use Direct Liquidation as their online platform to liquidate their merchandise.

So now not only are you getting merchandise below wholesale prices but you are getting more quality merchandise than in other liquidation companies. In addition, shipping costs are reduced as the merchandise is shipped directly from the retailers’ warehouse, not the liquidation company.

One more thing to keep in mind is that the profit normally comes from the number of sales, not a single huge sale, although these are certainly possible. Sometimes a single item in a pallet of unsorted customer returns, that was returned new, unopened, can be sold at higher price and recover all your investment in the pallet and put you in profit.

When you buy wholesale pallets or items in bulk you should count your profits once you sell every item from that batch. This means that patience is rewarded.

Push Your Online Business Forward

Whether you are a seasoned buyer who already has a network of wholesale suppliers to work with, or you are only beginning to make inroads into the business, these were simple and straightforward tips that will take your business forward.

There are simple steps to follow in order to grow your Amazon or eBay resale business. Source a niche market, find a reputable liquidation company to work with, buy quality merchandise at prices below wholesale and keep your profit margin high while saying price-competitive, grow one step at a time until you reach your goal market, or get your existing Amazon or eBay business to a desired level.

Direct Liquidation is a goTRG company.

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