In Part 2 we talked about where you could find wholesale products for free to sell on eBay. A great way to get started and to make a living on eBay but it is a good idea to find multiple sources of wholesale products. If you are able to find multiple sources of wholesale products and the sales of one wholesale product line or a wholesale source dries up you have others to fall back on. Diversification, just like when dealing in the stock market, can save your little behind and help to keep your income stable and secure when selling on eBay.
Here are my 9 ½ top places to source products to sell on eBay:
1. Rummage Sales
They are called Rummage Sales, Garage Sales, Moving Sales and Junk Sales but the one thing they have in common is great deals. Anytime you can find great deals you have a wonderful source of wholesale products for eBay. When people sell items that they just want to get rid of they normally sell them cheap. You can buy products at Rummage Sales for pennies on the dollar. You can many time purchase items for under $5 and sometimes for under $1 and resell them on eBay for 100 to 1000% profit margin. However, on the down side, Rummage Sales can be very time consuming. You can sometimes spend the entire day going from sale to sale finding only a few items to sell on eBay. Make sure you are not too picky in other words don’t concentrate your efforts on just one type of product. Knowing a good deal and being willing to purchase anything that will make money on eBay will make sourcing wholesale products from rummage sales much more profitable. So start early, know your route, have lots of cash and have fun.
Tip: Put an ad in the paper under the rummage sales section and make up a business card to hand out that lets people holding rummage sales know that you are willing to haul anything that doesn’t sell away for free. Many people dread having to put the items that didn’t sell back into their homes or even the idea of having to pack them up again. They will be willing to let you come and take the items that didn’t sell off their hands for nothing. Keep what you want, to sell on eBay, and haul the other stuff to a local charity store.
Success stories of People Selling Rummage Sale Finds on eBay: An article from the Pittsburgh Tribune interviewing people who have made good money on eBay sourcing wholesale products from rummage sales.
Tips to Help You Find Great Deals at Garage Sales: Tips for making garage saling fun and worthwhile.
Yard Sale Shopping Tips: These tips will help you become a better yard sale shopper and to help avoid making bad purchases.
Garage Sale Strategies for eBay Success: The eBay Seller’s Guide to finding profitable hidden bargains at garage sales.
2. Store Clearance Sales
Many large department stores have seasonal clearance sales every year and this is a wonderful place to source wholesale products for eBay. In fact many times the stores have the items priced below wholesale for fast sales. This is one of the methods I have used in the past to source wholesale items for eBay. I have seen brand new shirts and pants that retail for $15 to $45 dollars go for as little as $1.50 on a clearance rack. I either sell them quickly on eBay or hold them over until the following year and sell them at the beginning of the correct season. One time I purchased an entire rack of winter maternity clothing at JC Penny for about $3.00 a piece. I held them until the next year and sold them off on eBay for $15 to $25 a piece. 500% – 800% profit margin is not bad business.
3. Surplus and Salvage Dealers
Another popular place to source wholesale products for eBay is from dealers and brokers who wholesale surplus, closeout, overstock and liquidation products. Surplus businesses purchase large truckloads of salvage merchandise from manufactures, retail stores and reclamation centers. Normally they break them into smaller lots and resell them to anybody who wants them. This can include slow moving items, store returns and damaged products. I have made tons of money buying and selling surplus merchandise on eBay but I have also gotten piles of junk occasionally. You must remember when purchasing wholesale products through a surplus and salvage dealer that it is buyer beware. It is a very good idea to fly before you buy. Meaning before you purchase a pallet or truckload of wholesale surplus merchandise fly and check out the company and the merchandise before you buy. You want to make sure that the merchandise is good and that the company is legitimate.
Some internet sources for surplus items are: www.closeoutoutcentral.com , www.liquidation.com, www.cwsmarketing.com, www.petsupplycloseouts.com . One of the top directories for surplus and closeout products on the internet is www.surplus.net .
Need to know more?
There is a great guide written by Chad Maslak called: The Ultimate Insiders Surplus, Liquidation and Wholesale Buying To Resell for Mega Profits Guide. This guide really goes into detail and tells you everything you need to know about buying and profiting from surplus and overstock merchandise.
4. Estate Sales
Estate sales are much like a rummage sale or a garage sale except they are normally selling the property of an individual who has passed away. Estate sales are many times conducted by a professional for a percentage so the prices are usually higher than what can be found at a rummage or garage sale. This being said it can be a goldmine for jewelry, old books, vintage clothing and antique furniture which can be terrific wholesale products for eBay. Don’t get caught up in the excitement. You need to know your market before going to an estate sale. Have an idea of what prices the products are bringing on eBay before purchasing or have somebody sitting by the computer at home so that you can call them to do some quick eBay research for you. Normally estate sales run for multiple days and during the last day prices are usually reduced.
If you need help finding estate sales in your area there is a website called EstateSales.net that may be able to help.
5. General Wholesalers
A General Wholesaler is the link between a manufacturer and you the retailer. A true wholesaler will only sell to a true business. Before contacting them make sure you have a business license and or a resale tax permit. Most wholesalers do not advertise but when you do find one they are usually the most consistent and reliable sources of products for eBay. No more spending countless hours looking for wholesale products to sell on eBay. With a General Wholesaler you just order and the product arrives at your door. When looking for a General Wholesalers beware of the middle men. These are the ones shouting for your business. Middle men usually do not carry any inventory they just mark the price up and have the true wholesalers ship directly to you pocketing the difference. One of the best way to find real wholesalers is to contact the manufacturers directly and ask for a list of their wholesalers. Another way is to find a reliable directory to connect you to real wholesalers. One of the best directories on the web is World Wide Brands. I would highly recommend them if you decide to go with a directory to find your wholesalers. They are the only ones recommended by eBay.
6. Used Clothing Wholesalers
One of the most overlooked and profitable sources of wholesale products for eBay is bulk used clothing, shoes and toys. Imagine being able to buy shirts for as low as 12 cents a piece, pants for 30 cents and shoes for as low as 98 cents and reselling them on eBay for as high as $25 a piece and sometimes even higher. Yes I know this is possible because I have done it! Have you ever given your used clothing to a charity because it was worn out, it didn’t fit or maybe because you just didn’t like the style that much. Many times the charity will resell this clothing to wholesale used clothing dealers by the pound. These dealers then sort and grade the clothing by condition, season etc. and sell it to vendors and retail stores in third world countries. This does not mean they won’t sell to an eBay business. In fact most will happily sell to you.
When you buy make sure you let them know what season of clothing you want and in what grade. If you don’t specify the season and grade you might end up getting a great deal on a load of winter clothes, in the summer, with lots of holes and stains. Most wholesale used clothing dealers divide their clothing up into three grades; Grade A – good quality, minimal wear, free of stains and holes, Grade B – ok quality, some wear, possibly tiny holes and minor stains, Grade C – nominal quality, holes, stains and wear. This is the most common grading system but some companies have their own grading system such as AAA, AA, and A so make sure you ask. For products to sell on eBay you would want to order the top grade although some companies will sell you unsorted and ungraded clothing for much less. If you are patient and willing to work hard you can sometimes make more money on eBay with ungraded bales but for me I always get the top grade.
Wholesale used clothing dealers normally price the product by the pound and then sell them in bales of 100 to 1000 pounds. Price per pound depends on grade, type and season and can vary greatly from one wholesale used clothing dealer to another. It is a good idea to shop around but when you find one that consistently supplies you with the quality of product you are looking for, to sell on eBay, stick with them. In this industry there are both good and bad middle men. The good middle men mark the price up but provide you with additional services. One such good middle man is www.usedapparel.com who not only sells the clothing in smaller lots but also cleans, steams, presses and polybags the product before shipping them to you. This can save you lots of time and money and it may be worth paying the higher price. The bad middle man provides you with no additional services and has no product on hand but instead just marks the price up and has the true wholesale used clothing dealer ship the product to you, pocketing the difference. It is best to fly before you buy with this eBay wholesale product source. P.S. Here is another company just to get you started: www.abcloseouts.com
7. Thrifty Stores
Many eBay sellers source their wholesale products from Thrifty Stores which are normally run by organizations such as the Salvation Army, Goodwill, ARC etc. You can make huge profit margins on eBay with thrift store finds such as brand name clothing, antiques and books. The secret is to know your market and to know your thrift store. You want to avoid the temptation to buy on impulse. Make sure you do your eBay research before you buy. You should never buy something if you are not sure whether or not it will sell on eBay. Buying items that will not sell is a waist of your time and money. Knowing your thrift store is a hug benefit. Many run specials on certain days of the week marking the prices down 50 to 75 percent. It is also a good idea to become friends with the employees that work at the stores so that they can call you when the store runs a good special on the type of items you buy. Another great idea is to volunteer a couple hours a week at your favorite thrift stores. Not only do you make friends with the employees but you also get to see some of the good stuff that comes in the door and are able to buy it before other do. One of my students does this and makes very good money on eBay selling her thrifty store finds.
The thrift stores in our area have seasonal bag store specials where they try to clear out the end of season items. You get a paper grocery bag and put as many items as you can fit into the bag for only $5 per bag. My wife and I have done this and have been able to pack up to 30 items in one bag. Paying less than 20 cents per item and then reselling them on eBay for a 5000 plus percent profit margin.
The best part about sourcing your eBay wholesale items at Thrifty Stores is you get to hand pick what you buy and if you did your eBay research you will be able to sell almost 100% of your purchases on eBay for a huge profit.
8. Drop Ship Wholesalers
Drop shipping is basically selling an item that you do not have in your possession, but instead you contact the Wholesale Drop Shipper once the item has sold on eBay, pay them the wholesale price, and they ship it directly to your customer with your name on the package and invoice. Your profit is the difference between what the item sold for on eBay and the wholesale price. Being able to sell products without carrying stock and without an up front investment makes the idea of using a drop shipper very attractive for sourcing wholesale products to sell on eBay. What you must understand is that most drop shippers are middlemen. They buy from the real or true wholesaler mark up the price and resell to you. That is not all bad since they do provide a service and that service is basically acting as your warehouse and shipping department. One of the problems with this is your profit margin will be less and you will have a difficult time competing on price. Ebay is very price competitive so it can be very hard, but not necessarily impossible, to survive when using a drop shipper as your wholesale source. The other problem is that you will have no control over inventory and little control over shipping. This means if the drop shipper runs out of an item that you have sold on eBay you will have to contact the high bidder and let them know that you cannot deliver. I’ve been here and done this. Believe me it doesn’t go over to well.
There are a few eBay Powersellers who make excellent money sourcing wholesale products through a drop shipper. The trick is to find a true wholesaler that will drop ship for you or even better find manufacturer who will drop ship directly rather than going through a middleman. The easiest way to do this is to contact local manufactures directly and offer to market and sell their product on eBay for a percentage of the sale. Basically, your asking them if you can be an independent sales representative for their company. If you cannot find a local manufacturer that will work with you check out www.thomasnet.com for a free listing of manufactures. If you want an easier way I would recommend working with WorldWide Brands. WorldWide Brands does charge a fee but they can connect you with many manufactures who are willing to work with and dropship for eBay sellers. For more information on WorldWide Brands click here.
9. Crafts and Artwork
Many people successfully sell their own hand made items on eBay. Making your own products means being your own manufacturer and wholesale source for eBay. Many handmade items sell well on eBay but you must know what items are in demand before trying to sell them. The biggest mistake people make is to make a large number of items thinking they will sell them on eBay only to find out they are not in demand. If you plan on selling your hand made items on eBay make sure you do your eBay research before you spend countless hours making them. Another thing you must be aware of when selling hand made items on eBay is that many times you must develop a following. This takes time and patience but if they like your product they will come back for more and will be willing to pay higher prices to get it. eBay has a guide for selling crafts on eBay which is worth a read.
9 ½. Ebay
I couldn’t stop at just 9. You can use eBay to source your wholesale products to sell on eBay. There are two way to get your wholesale products from eBay. The first is to buy wholesale lots directly off of the eBay site. Some wholesalers and retail stores will sell their dead stock on eBay in bulk lots. If you go to eBay’s All Categories area you will see that most categories have a “wholesale lots” section. You can normally find some great deals that you can divide up and resell by the piece. Just make sure you do your research first.
The second way to source your wholesale products off of the eBay site is to buy auctions low and resell them at a higher price. You must know the product line and what that product normally goes for on eBay in order to do this effectively. Look for items that have been incorrectly listed, buy them dirt cheap, and resell them for a profit. Many inexperienced eBayers and even some experienced eBayers will list their items incorrectly. Either by misspelling or missing keywords in the title, using poor pictures or sometimes even no pictures at all or having them end at unbelievable times of the day or night. If you can find these items many times you can turn them over for a quick profit. I have purchased items like this many times. One time I purchased a projector on eBay for $120 that was selling for over $500 on eBay at that time. What did the eBay seller do wrong so that I could get such a good deal? He didn’t use the word “projector” in the title or the description. His title was Epson model xxxxx and the description was : “We only used this a couple of times at our business for training but now we have a big screen TV so we no longer need it.” I was the only one who bid. If I didn’t want it for myself I could have turn around and sold the projector the next week for over $500. This method is called Arbitrage and many people make good money doing this. Don Hoppe has written guide to doing this effectively you can click here if you want to learn more about his guide.
In Part 4 of eBay Wholesale I will talk to you about how to protect your eBay business from wholesale scams.
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