Here’s Why You’re Not Making Money Selling Wholesale Products

Here’s Why You’re Not Making Money Selling Wholesale Products

If you’re reading this you must be an entrepreneur at heart. I’ll take a well educated guess that you’re committed to making a solid income with your own business and if you’re interest is in selling items online you’ll definitely want to read this. There are a multitude of ways to make money online and some of the more popular ones involve buying items from wholesalers then selling those items with adjusted margins for profit.

Simply put, I buy this from you for $ 1 dollar and I sell it for $ 2. It sounds easy, it looks easy, but trust me there’s a lot more to it.

Things you should know: There are thousands of wholesalers some online and some that are not. Some offer different services like drop shipping. For the uninformed, that means for a reasonable price they’ll ship your items directly to your customers, which is convenient and cheaper in most cases, because you don’t incur the charges of stocking and storage fees. A good wholesaler is a rare commodity and a well guarded secret. It practically has to be for continuation in making good profits. So you can conclude part of becoming a good online merchant requires finding a good wholesaler. I’ll brush up more on the topic of finding a good wholesaler in a later article. For now I’ll grant you already have a decent wholesaler you’re purchasing items from.

We arrive at the big question: Well, how do I make money online? Your first thought might be ebay and sure you can sell on Amazon, PriceGrabber, Buy.com or any other popular web store or auction site. And there are truth behind the claims, you can make profits from selling from these sites, but how do you do it? Remember, when you buy an item for $ 1 and sell it for $ 2, you made a $ 1 profit but don’t be fooled by this simple math equation, there are many other factors you’ll want to look into. The most important concept to understand as an online merchant is the term “ROI” or Return On Investment. Let’s calculate that previous math equation again where you made $ 1 profit. Now ask yourself, how much time did I spend to make that profit and how many fee’s did it cost me to make that profit? Looking at the math now exposes the profit of $ 1 as an actual loss on your end. Keep reading soon you’ll start to see the big picture.

Understanding ROI will save you loads of cash! If you ever wonder why people are making money online and you are not, maybe it’s because they’re understanding something you’re not and I’ll tell you what it is, and that is, time is money. That’s right your time equals money. If I stay home all day and make a $ 20 profit after working 6 hours, I will consider that a loss. And you might think in your head you’d never do something like that, but hundreds of people do it each day unintentionally because they want their online businesses to succeed. What ends up happening is, they work harder to keep the business afloat and unknowingly fall into a downward spiral of failure and wasted income.

Another concept to understand: Every time you sell a product on a third party website someone made a profit. After, insertion fees, closing fees, commission fees, wholesaler fees, drop ship fees, shipping fees and shopping cart fees, was it you? When you sell on a third party website that website made their money off of you upfront not to mention their commission rate off of the final sale. All of these fee’s cause you to increase your selling prices and reduce your margin of profit, while your competitors sell below wholesale value and dominate the market. So how does the small guy win?

Here are three smart options for newbies:

1) You start your own web store and sell everything your wholesale supplier offers you.

2) You start your own web store and sell a special item in an attempt to dominate a specific section of the market.

3) You start your own web store and sell a unique item only you have possession over and dominate the whole market.

Out of those three options which one sounds the best? Obviously number 3, because you are now in control.

Option #1 doesn’t work unless you’re planning to compete against Wal-Mart and Amazon.

Option #2 seems to work better but your competition can still under sell you at any given time.

Option #3 allows you to sell an item that poses no competition allowing you to control your income.

A diamond doesn’t reach full potential until it’s professionally cut, think of this concept in the same way. I can’t tell you what to sell online, but if it’s unique it has a higher percentage of making you more money. What I have just revealed to you as simple as it sounds, is a concept thousands of new online merchants are not understanding. Ask yourself, how hard is it to find a cool item that few people know about? There are thousands of new products that have the potential to make you a successful online seller.

Here’s the tricky part: If your item is too unique, people won’t generally be searching for it. The solution is, knowing there are many free and inexpensive ways to drive targeted traffic to your website, like writing ezines, posting in forums, writing blogs and promoting on social network sites like myspace and facebook.

Also, understand you’ll need to market your item and create a need for it. There are no short cuts to success here. Write well versed scripts and put a 100% into every product you endorse. That means pictures and or video, good product information and having a way for your customers to have direct contact with you. I sincerely hope this information has exposed you to a new exciting way of selling products online and good luck. Please feel free to email me anytime, with any questions or comments.

-Craig Summers

Question by : Best ecommerce solution for my needs?
Best ecommerce solution for my situation?

Ideally I want an ecommerce system that fulfills these requirements:

seamless integration with paypal
Ability to add discount codes/coupons (in pounds not just dollars)
At the moment I will be selling just one ebook therefore I need a system that can securely deliver the product to my customers after paypal has received payment and has an expiration time or a download limit to prevent it from being shared.
No file size limit for the ebook (even over 500mb)
I am using wordpress therefore I just want a link to an order page that I can then add a link to on a buy button I already have on my site rather than having to send a link to an online store like digiSHOP offers.
Ideally it would be free or the cost would be as little as possible and would NOT be a monthly sum but either a small one time payment or a small percentage of each sale
Finally I want it to be relatively easy to set up or there to be online tutorials as I don’t have a great knowledge of programming or scripting.

Thanks alot in advance, I know that these criteria are quite specific but I would be grateful if I anyone would provide any suggestions or give their opinion on the ones i am already considering. So far some of the ones I am considering are: zencart, plimus (however this is quite expensive), bytecommerce, idev-digivendor 5.0, magento and dlguard.

Best answer:

Answer by Smelly Cat
Look at jigoshop.com – it’s a plugin for wordpress. If you used a plugin like s2member as well I think you’d be pretty darn close to what you want.
There’s also http://shopperpress.com
ANother plugin – wp-ecommerce – http://getshopped.com (don’t use this one if you’re fond of your hair)

You will not find an ecommerce solution that will not take the customer off of your site. In order to pay they have to be taken from your site (unless you’re a bank, of course.)

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