Your profits from eBay auctions will come from consistent application of the principle buy low, sell high. To do this, you need to find sources of products at the lowest possible prices that you can then sell at top dollar.
Regardless of your product type, there is more than one supplier. Here are 12 ways to locate sources of at wholesale or bargain prices.
1. One of eBay's categories is Wholesale where one can browse through products in mixed lots. Mixed lots may be offered by eBay Power Sellers who have located a low-cost, bulk purchasing deal, manufacturers and distributors with large excess inventory, and individuals just looking to clear out their excess stuff.
2. Smart eBay sellers scour auction listings that are poorly designed and have few or zero bids. They pick up real bargains this way and then, put up a more enticing listing and sell the items for profit.
3. Art and craft items you make yourself.
4. Buy direct from manufacturers if you are willing to purchase in larger lots. You can always sell the excess on eBay. Search for manufacturers of any materials by browsing the Thomas Register; search online for Thomas Register.
5. Business closings such as a craft supply store going out of business will provide an opportunity for what is often known as a distress sale. The owner of a failing business is often under pressure to liquidate inventory at prices lower than wholesale. Find notices of business closings through newspaper announcements and looking out for Going out of business signs.
6. Estate sales occur upon the death of someone whose family seeks to sell personal items rather than keep them. Estate sales are often announced in classified ads.
7. Garage sales offer another source of buying items cheaply. You see notices for garage sales almost every weekend.
8. Flea markets typically feature tables and tables of odd items, often sold at low prices.
9. Local live auctions are usually held weekly for a huge variety of merchandise. You can sometimes find lots of items which can be sold individually for profit on eBay. Check your Yellow Pages for auctions in your area.
10. Wholesale trade shows may be expensive to travel to, but display hundreds of booths from a wide variety of distributors and manufacturers. To locate trade shows around the U.S., search online for trade show listings.
11. Locate wholesale suppliers for a huge variety of products through the Directory of Drop Ship Sources at Worldwide Brands.com.
12. Another method of scouting for sources that gets mixed results but is fairly fast is to search for wholesale suppliers from Google or Yahoo. For example, type in wholesale craft supplies and you'll see lots of sites to visit. The challenge with this method lies in sorting true wholesale suppliers from pretenders out to capture unsuspecting bargain hunters. This method will also bring up wholesale source directories for sale, but most of these will be lists of companies you can probably find from your own research.
Most legitimate wholesalers and distributors won't sell direct to the public and require buyers to have a resale certificate, which is the same as a state sales tax permit. If you don't have a state sales tax permit, contact your state's office of taxation and revenue.
James Dillehay is author of eight books and a former magazine publisher. He has been interviewed in The Wall Street Journal, The Chicago Tribune, Bottom Line Personal, on HGTV and Entrepreneur Radio. He writes about ways to start a craft business on his blog.
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