This Little Piggy Went To Market...
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Selling Someone Else's Physical Products
So you want to learn more about selling someone else's products? Here's what you'll need:
1) A Supplier
2) A Marketplace
3) Some Seed Money (in most cases)
Finding a supplier can be a challenge if you don't have one in mind already. There are a number of directories out there that can help put you in touch with suppliers from all over the world.
The one I recommend using provides training videos to help you get a grasp on all of the information, has a vibrant community and associated forums for members only and verifies suppliers to make sure you only work with reputable and reliable contacts.
Personally, I found the forums to be a very valuable resource. It adds a great deal of peace of mind to be able to ask your peers about their experience in a particular niche and especially with a particular supplier. The videos are high quality and the supplier list is extensive and really quite easy to search too.
You can find the supplier directory and join for yourself here.
The Marketplace is really up to you. EBay is probably the most trafficked, but also levies a lot of fees for sellers. EBay is a very well advertised site and they've got to pay for it somehow! You'll get the benefit as a seller so you get to help foot the bill too! Many sellers feel like EBay is set up to favour buyers and that's probably true. Remember that a good buyer experience will bring them back - It can be a pain for you but it's worth it for repeat customers!
Be sure to check out some of these other marketplaces.
ArtFire.com - Premier handmade marketplace to buy & sell handmade crafts, supplies, vintage and art
Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more
Addoway - Shop with your friends and the merchants you trust
Blujay 100% Free Online Marketplace
Bonanza :: Your destination for everything but the ordinary
eCRATER - online marketplace, get a free online store
Etsy - Your place to buy and sell all things handmade, vintage, and supplies
Ruby Lane - Antiques & Art . Vintage Collectibles . Jewelry
And of course... you could start your own E-Commerce site as well.
Just as a reminder, some of those sites have a particular focus.
For instance, Etsy tries to focus on hand made items. If you're going to sell hydraulic equipment, this might not be the marketplace for you!
Some Seed Money may or may not be required. There are a few different methods of interacting with suppliers and getting your hands on goods to sell in the market place. Here's a quick overview of the supplier type many people use to start selling products at market...
Drop Shipping
If you don't have much to get started with, you'll probably be drawn to what is called "drop shipping". This is where you never touch the item you've sold. Once you've sold it at retail price, you place an order with the wholesale supplier who then ships the item directly to the buyer using the shipping information you provide them.
Be warned that many suppliers prefer to work with "real businesses". You'll probably want to look into setting up your business as a legal entity. The process can vary from country to country so unfortunately I'll have to leave you to do that part on your own.
The Benefit: You don't need to maintain a large warehouse of inventory. You also don't take on as much risk as you only pay for things you sell.
The Drawback: Because you aren't buying in bulk and have no control over how the items are stored, you can't take advantage of bulk pricing or trim your costs. Also, if there's disruption with the product supply you may find you're in a tight spot where you owe the customer an item and the supplier can't send it. You can't do a whole lot about this issue unless you plan ahead.
Overcoming Drawbacks: There isn't much you can do about bulk pricing without changing the supply type all together. You can, however, keep a small stockpile (nothing too extensive) to overcome any short-term supply disruptions.
If you're selling action figures to a dedicated niche market that's shown they have a consistent demand for what you're selling, you may want to order two or three to keep on hand if you've got limited space.
Ultimately, your reputation is one of your most valuable resources as a seller and it's probably worth the trouble to keep it from being tarnished.
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So you want to learn more about selling someone else's products? Here's what you'll need:
1) A Supplier
2) A Marketplace
3) Some Seed Money (in most cases)
Finding a supplier can be a challenge if you don't have one in mind already. There are a number of directories out there that can help put you in touch with suppliers from all over the world.
The one I recommend using provides training videos to help you get a grasp on all of the information, has a vibrant community and associated forums for members only and verifies suppliers to make sure you only work with reputable and reliable contacts.
Personally, I found the forums to be a very valuable resource. It adds a great deal of peace of mind to be able to ask your peers about their experience in a particular niche and especially with a particular supplier. The videos are high quality and the supplier list is extensive and really quite easy to search too.
You can find the supplier directory and join for yourself here.
The Marketplace is really up to you. EBay is probably the most trafficked, but also levies a lot of fees for sellers. EBay is a very well advertised site and they've got to pay for it somehow! You'll get the benefit as a seller so you get to help foot the bill too! Many sellers feel like EBay is set up to favour buyers and that's probably true. Remember that a good buyer experience will bring them back - It can be a pain for you but it's worth it for repeat customers!
Be sure to check out some of these other marketplaces.
ArtFire.com - Premier handmade marketplace to buy & sell handmade crafts, supplies, vintage and art
Amazon.com: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more
Addoway - Shop with your friends and the merchants you trust
Blujay 100% Free Online Marketplace
Bonanza :: Your destination for everything but the ordinary
eCRATER - online marketplace, get a free online store
Etsy - Your place to buy and sell all things handmade, vintage, and supplies
Ruby Lane - Antiques & Art . Vintage Collectibles . Jewelry
And of course... you could start your own E-Commerce site as well.
Just as a reminder, some of those sites have a particular focus.
For instance, Etsy tries to focus on hand made items. If you're going to sell hydraulic equipment, this might not be the marketplace for you!
Some Seed Money may or may not be required. There are a few different methods of interacting with suppliers and getting your hands on goods to sell in the market place. Here's a quick overview of the supplier type many people use to start selling products at market...
Drop Shipping
If you don't have much to get started with, you'll probably be drawn to what is called "drop shipping". This is where you never touch the item you've sold. Once you've sold it at retail price, you place an order with the wholesale supplier who then ships the item directly to the buyer using the shipping information you provide them.
Be warned that many suppliers prefer to work with "real businesses". You'll probably want to look into setting up your business as a legal entity. The process can vary from country to country so unfortunately I'll have to leave you to do that part on your own.
The Benefit: You don't need to maintain a large warehouse of inventory. You also don't take on as much risk as you only pay for things you sell.
The Drawback: Because you aren't buying in bulk and have no control over how the items are stored, you can't take advantage of bulk pricing or trim your costs. Also, if there's disruption with the product supply you may find you're in a tight spot where you owe the customer an item and the supplier can't send it. You can't do a whole lot about this issue unless you plan ahead.
Overcoming Drawbacks: There isn't much you can do about bulk pricing without changing the supply type all together. You can, however, keep a small stockpile (nothing too extensive) to overcome any short-term supply disruptions.
If you're selling action figures to a dedicated niche market that's shown they have a consistent demand for what you're selling, you may want to order two or three to keep on hand if you've got limited space.
Ultimately, your reputation is one of your most valuable resources as a seller and it's probably worth the trouble to keep it from being tarnished.
About The Author
Adrian In't Veldt is an author, speaker and entrepreneur from Ontario, Canada. In the past he's worked with local school boards, operated an offline consulting practice and spoken at many seminars regarding financial planning. Today, Adrian operates a microbusiness from home so he can spend more time with his girlfriend and pet turtles. Sign up to receive more content like this from Adrian In't Veldt.