When someone wants to start reselling products on ebay the first thing that comes to mind is electronics. One figures if its a big ticket item it must mean big profits. While this can be true you really need to understand what you are buying.
There are several ways to acquire electronics to resell.
1. You can buy from a dropshipper or a discount vendor in single quanties. This is a good option if you have little working capital to go with. On most pieces like an ipod you could make a $20 profit. However you need to take into account ebay fees which might bring the profit down to $10 or $12. Its amazing how many people forget to take listing and final value fees into account when they are reselling products.
2. You can buy in bulk lots of 25 or so. This will get your price down further but could take you longer to resell with the competition. Also these units are usually refurbished.
3. You can aquire a resale licence (which is easy) and buy direct from the vendor like a retail store does.
4. You could buy like the big guys do...but odds are you don't have $80,000-$100,000 to buy a truckload of customer returns from best buy. This is how the most money is made with wholesale. The bigger load you buy the bigger profit to be held usually.
Know what you are buying!
NEW: Is the best of the best. Retail packaging like it came off the shelf. Sometimes new can have dented boxes but you can be assured its under a warrenty or working and no buyer reprocussion
REFURBISHED: Means there was something wrong with the item and then fixed by a professional.
CUSTOMER RETURNS: This is where a lot of people loose money. The price looks attractive and the vendor will probably tell you they are "untested" but that 80% are generally working but they are still sold as is. When you recieve it less than half and sometimes none are working.
You need to be especially careful of items like ipods because some people will actually take out the hardware from the units and just resell cases. Also returns will often not be in packages, and have accessories missing
SALVAGE: These are intended for professional buyers as they are clearly defective and need repair. This could include no power, dents, scratches, missing harddrives and such.
Always do your research before you buy from someone. Start with a small investment and as your relationship builds with the vendor you can order larger quanities without the worry.
Guide created: 05/05/08 (updated 05/13/09)

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