How do you compete when Amazon/Ebay have almost every product cheapest...?

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Hi there guys,


I did some research on a product which I believe to have sufficient enough search traffic and low enough PPC CPC for me to make some money...

But heres the snag...the product is being sold cheaper on Amazon and Ebay...

To give more detail, what I plan to sell is an electronic device...there are about 5-6 companies that make them, some medium brand electronics companies and 2 big electronics companies, and then there are a number of smaller companies that sell a lesser quality of the device as an OEM (non branded) version....

My question is this, which of the below options would be best...1 or 2

Option 1

Do I locate a dropshipper/wholesaler for the branded version of the device and sell it at the same/higher price than amazon and ebay via PPC....i wouldnt be able to sell it cheaper than them or I wont make a good margin. Although people can easily search the product number and find amazon/ebay selling it cheaper my reasoning for still doing it would be that;

A) Not everyone shops around, so people may land on my page and just buy from me.

B) If my site and product page is persuasive enough they may buy from me anyway - I will have high res images and a video - so they may not shop around...

Is there any basis to my above assumptions??

Option 2

I locate a dropshipper/wholesaler for the unbranded version of the device and sell it at whichever price I choose - as the consumer cant compare it online as it doesnt have a conventional brand name and product number..., however with this option the device may be of lower quality...and I will need to manually test it myself first (no reliable brand name to fall back on), but I can more comfortably add a higher markup.


Sorry about the long winded post

I guess the core of what Im asking for is, do any of you sell products that are sold cheaper elsewhere online, successfully on your own online stores....or do you have to provide the lowest price going to win the sales.????

Really look forward to your replies on this....
#amazon or ebay #cheapest #compete #product
  • Profile picture of the author Importexport
    Originally Posted by Sonny Am View Post

    Hi there guys,

    But heres the snag...the product is being sold cheaper on Amazon and Ebay...

    To give more detail, what I plan to sell is an electronic device...there are about 5-6 companies that make them, some medium brand electronics companies and 2 big electronics companies, and then there are a number of smaller companies that sell a lesser quality of the device as an OEM (non branded) version....

    My question is this, which of the below options would be best...1 or 2

    Option 1

    Do I locate a dropshipper/wholesaler for the branded version of the device and sell it at the same/higher price than amazon and ebay via PPC....i wouldnt be able to sell it cheaper than them or I wont make a good margin. Although people can easily search the product number and find amazon/ebay selling it cheaper my reasoning for still doing it would be that;

    A) Not everyone shops around, so people may land on my page and just buy from me.

    B) If my site and product page is persuasive enough they may buy from me anyway - I will have high res images and a video - so they may not shop around...

    Is there any basis to my above assumptions??

    Option 2

    I locate a dropshipper/wholesaler for the unbranded version of the device and sell it at whichever price I choose - as the consumer cant compare it online as it doesnt have a conventional brand name and product number..., however with this option the device may be of lower quality...and I will need to manually test it myself first (no reliable brand name to fall back on), but I can more comfortably add a higher markup.


    Sorry about the long winded post

    I guess the core of what Im asking for is, do any of you sell products that are sold cheaper elsewhere online, successfully on your own online stores....or do you have to provide the lowest price going to win the sales.????

    Really look forward to your replies on this....
    Firstly, if you have to always sell at the lowest price, you can become a slave to your business and earn appropriate money being a slave.

    Option 2 gives you an opportunity to make big bucks, but only if you buy direct from manufacturers and not through wholesalers or dropshippers.

    Contrary to what most people believe, it is possible to buy small quantities direct from manufacturers if you use the right approach. Local manufacturers will not do it, but overseas ones will.

    I never recommend the B2B portals usually recommended on WF, because huge numbers of suppliers who list on those sites as manufacturers are not, so you finish up dealing with resellers, traders or wholesalers anyway.

    The massive profit margins you can get when you buy direct from the factory will blow you away. Basically you can forget about competition.
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  • Profile picture of the author CellGuru
    I second ImportExport's observations .. B2B sites are full of Traders and middlemen that pose as manufacturers .. you can find the real ones by attending sourcing fairs and similar events. That being said, manufacturers WILL have minimum order quantify (MOQ) in most cases.. but for OEM electronics items they should have already many in stock and these are not manufactured-on-demand.
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    • Profile picture of the author Importexport
      Originally Posted by CellGuru View Post

      I second ImportExport's observations .. B2B sites are full of Traders and middlemen that pose as manufacturers .. you can find the real ones by attending sourcing fairs and similar events. That being said, manufacturers WILL have minimum order quantify (MOQ) in most cases.. but for OEM electronics items they should have already many in stock and these are not manufactured-on-demand.
      One trick of the trade that I teach is how to get manufacturers to accept small orders even when they quote big MOQs.

      As CellGuru points out, OEM electronics items are not manufactured on demand, and are therefore usually in stock. The same applies to many products, particularly manufacturers' own design items. They will still quote a big MOQ even if they do have product in stock.

      Also if you are not in a rush you can get manufacturers to piggy back your small order along with a large production run. It all hinges on how you approach them.

      While overseas suppliers are usually much easier to deal with than local manufacturers it is still important to make a good impression on first contact. One common problem I see is newbies trying too hard to make that good impression, because they have read on forums that this is important.

      One thing I always advise is to not tell a prospective overseas supplier that you are just starting off in business. I have many times on forums seen business plans recommended as part of the first approach. That's OK if approaching local suppliers, but if you follow that advice when approaching overseas suppliers you will most likely get nil response.
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  • Profile picture of the author iove234lifee
    I have this problem as well, importing items from china then trying to sell on ebay with a very low profit margin.
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    • Profile picture of the author Importexport
      Originally Posted by iove234lifee View Post

      I have this problem as well, importing items from china then trying to sell on ebay with a very low profit margin.
      If you are working with a very low profit margin you must be buying from a reseller, wholesaler, trader, or dropshipper.

      If you want to work with a very high profit margin you must buy direct from genuine manufacturers. You need to avoid those B2B sites that list people as manufacturers but they are not. Most sites are in that category.
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author BigSistah16
        Hi all,

        I'm new here and I have an amazon store. What I have been unable to find are genuine manufactures that might have a good product I can sell, with high profit margins, that do not require large orders.

        any suggestions would be greatly appreciated. ?

        Thanks

        BigSistah

        Originally Posted by Importexport View Post

        If you are working with a very low profit margin you must be buying from a reseller, wholesaler, trader, or dropshipper.

        If you want to work with a very high profit margin you must buy direct from genuine manufacturers. You need to avoid those B2B sites that list people as manufacturers but they are not. Most sites are in that category.
        {{ DiscussionBoard.errors[8195974].message }}
        • Profile picture of the author Importexport
          Originally Posted by BigSistah16 View Post

          Hi all,

          I'm new here and I have an amazon store. What I have been unable to find are genuine manufactures that might have a good product I can sell, with high profit margins, that do not require large orders.

          any suggestions would be greatly appreciated. ?

          Thanks

          BigSistah
          Hi BigSistah,

          It is not easy for me to reply without some self promotion, so I will have to limit my answer.

          I teach which sites are safe to use, how to be sure you are dealing with real manufacturers, how to introduce yourself to them, how to get them to supply small orders even if they originally quote a big MOQ, and how to get the best prices.

          Profit margins direct from the factory can be 2, 3 or 4 times as much as you can get from wholesalers, even if you do buy small quantities.

          The range of products you will find is vast, and the shipping process can be a piece of cake if you follow my methods.

          I could say more, but you would have to ask.
          Signature
          Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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