Wholesale Products – Success in Wholesale Business Depends on Selling the Right Wholesale Product

Starting a business online is so rampant nowadays. Like in eBay, it is one of the biggest and fastest growing auction houses online. Almost anything can be sold virtually in this online selling website. The only challenge in this online growing market would be your millions of competitors. Most people around the world joined the competition and displayed their wholesale products, then sell them to billions of consumers worldwide. Everyone has their own strategies and techniques to be part of the infamous “power sellers”. And, if you are a newbie inside this giant arena then there is almost no chance for you to sell your items.

If you are really interested and dedicated of building your dream business in this huge market and putting your records to the test within the level of the power sellers, then here is the key of possibilities in reaching your goal, and that is knowing the right wholesale product to sell.

At present, the most hottest selling wholesale products in eBay include the cell phone boosters, children’s and big women’s clothing, clothing having the western fashion, jewelry, watches, diet pills, nutritional sex enhancers, second hand toys, software and games, power tools and hand tools, perfumes, books, cars, and as well as car accessories. Choosing among these wholesale products definitely means immense numbers of customers waiting to see what your product can offer.

In choosing among the wholesale products, choose the products that greatly interest you. You should also consider your own knowledge of the products in choosing. Although everything can be learned, it would be still on your advantage if you more information on the wholesale products you have chosen.

Always keep in mind that establishing a business is a great risk to take. And the best ways to lessen the risk is always make an excellent plan in every step you are taking. Knowing your own market and wholesale product, your own skill, plus your positive attitude then success is just within the reach of your hands. And following excellent guides and tips in this online business is a good way to start.

How to Buy Beauty Products and Perfumes – Some Helpful Tips

While recession has impacted the buying habits of all consumers, we do not need a recession to remind us that buying smart is the only way to get the best value for your dollar. Buying smart means two things—a reasonable margin over cost is allowed to be included in the retail price and the product lives up to its claims. With respect to beauty products, unfortunately, the industry is teeming with products that are pushed with hype and nothing else. So here is how to go about buying smart.

Let us first understand the beauty products segments. There are two major ones. Clinical beauty products and Fashion beauty products. The clinical segments consists of things like skin toners, eye conditioners, cleansing products and moisturizers. Fashion products mostly consist of perfumes and fragrances, but may also include aromatherapy products. Note that I have not included the third kind, “Muscle manipulators” as beauty products. These include botox and other invasive and non-invasive, sometimes surgical products. Simple advice–stay away from these. They are fatal to your long term looks.

1.First off, be very careful of overapplying make-up. Make-up products contains acids and chemical restoratives which may have negative impact on your body and hormone’s natural rejuvenating process. A quick tip–if you look pasty and 100% wrinkle free (as do many TV anchors and actors and actresses) you are harming your skin permanently. Make-up should be a light sheen on your skin. There is another way to deal with wrinkles, but caking make-up over wrinkles, as any dermatologist will tell you, causes long term skin damage and may even lead to other diseases like immno-deficient trends and allergy build-up. Similar, use moisturizers very sparingly–no matter how they are hyped, they contain reagents that take away skin’s natural moisture making ability.

2. Do not be fooled by hype. Study the manufacturer. Study its history, its recalls, its problems and if a public company, study its financials to see how much it spends on research and development, not on marketing. The money it spends on marketing is a negative investment to you as a consumer. Investment in research on the other hand shows you that they are forward thinkers. If you do not get the information from the financials, ask the management.

3. Buy your clinical product from one who specializes in skin toners, cleaners and other conditioners. Never buy fashion products from the same manufacturer. You will find that making perfume is an age old process and companies that dabble into it are not necessarily leaders. While both are chemical processes, perfume making is an art, not science. That is why the perfume brands that have been around for 50+ years generally do not peddle skin toners. If they do, stay away. There are at least 10 excellent companies in each category so you have plenty of choice.

4. The best clinical products are ones without added fragrance. The best fashion products, specially perfumes, are subtle, not overpowering. Also, remember evening scents are different from morning scents. Finally, both type of products, definitely clinical products should be bought after consulting with a good professional, because they can determine your natural skin tones and underlay textures and advise you accordingly.

5. Remember what I said about hype? Forget overhyped, branded products. You are mostly paying for marketing dollars. Instead, compare the ingredients–ignore the ones that have fancy names like “so and so’s formula” or “musk hair extract”. It means nothing because FDA will not allow an untested product to be prominently mixed, so you may be getting a negligible amount of that fancy ingredient. You will find that cheaper or store brands have the same chemical or natural ingredients as the fancily priced ones. The only exception I make is in perfumes. Certain perfumes have been around for a long time and never go out of fashion. On the other hands, the upstarts, peddled by actresses and actors, are usually cheap smelling, overpowering and have very little elegance and subtlety. Remember, you are wearing a perfume strictly for others. The trick is this–if you can “smell” your own perfume, you have either put too much or the perfume is cheap–and I don’t mean price wise. The best perfume is the one that subtly “hangs” in the air. You should either not smell a good perfume, or smell it very faintly–almost as if you are not sure you smelled it.

Good luck.

Pricing Your Products

In our scramble to find a way to offer the lowest prices on the Internet, we often overlook the basic steps that we should be taking BEFORE we even offer a product for sale.

We also overlook something even more important: you don’t HAVE to have the lowest price in order to make great sales. Following are some things I do before and after determining my bottom line. I sell by having products drop-shipped for my sites, which works VERY well, but these steps should be covered no matter your distribution method.

Should you be selling this item now?

Snowboards don’t sell well in the summertime. You may have a hard time moving a pair of roller blades in January. Don’t waste your time and your site space marketing products out of season. Ask your supplier for a little historical information regarding the best time to sell their products. Believe me, to everything, there IS a season. They have the figures. If they don’t want to share this info with you, find another supplier.

Identify your costs

Profit isn’t just the difference between wholesale and retail. You have other costs to consider. Think about every penny you spend in order to get that product to the customer’s door, and plan accordingly. For example, your merchant account probably costs you about 2.2% plus 30 cents per transaction. On an item you’ll sell for $20, that’s 74 cents. Don’t forget that calculation when pricing the item. Are you warehousing the item? How much is that space costing you per item per month? Did you spend money stocking up on shipping materials? How much per unit? What about advertising? Monthly hosting costs? You may need to project some estimated sales in order to arrive at some of these figures.

This may seem very complicated, but it’s really not. Just take the figures one at a time, and you’ll arrive at a wholesale cost plus an amount that, when added together, becomes your initial ESTIMATE of “cost of goods sold”. Identifying all your costs is critical if you want to price your products properly.

Check out the competition

Search on the item you plan to sell. Check out the competitors’ prices. But DON’T get caught up trying to beat the wrong competitor. You need to stay within your “venue”.

My stores are built in Yahoo Shopping (http://store.yahoo.com). 90% of my traffic comes from there. When I seek out my competitors, I look for other businesses like mine ONLY in Yahoo Shopping. Then I compare.

If I’m thinking about selling a product, and I get 1,500 hits in 400 stores on that item in Yahoo Shopping, forget it. If I get a hundred hits in 20 to 40 stores, I’ll look into it further.

So check out the competition, narrow down your product list, make a note of the five lowest prices you find, and then ask yourself another question:

Is anybody going to buy this thing?

This doesn’t have much to do with pricing, but it should be said.

When considering products, there’s unique, and then there’s too unique. Yak Cheese may sound like something that nobody else has for sale on the ‘Net. There’s a reason for that. If you sell more than 3 boxes a year, I’ll EAT some.

Unique is Rain Barrels made in Maine. It’s Exotic Cheeses imported from Italy. Silk Parisian Lingerie. Things you don’t see every day, but would be proud to give as a gift.

Then there’s “common”. Everybody and their grandmothers are selling Alabaster Figurines on the Internet. Do they sell? Sure, in a limited fashion. Do you want to sell them? Not if you want to make any real money.

In my experience, unique products, like Rain Barrels and Parisian Lingerie, DO sell. So do Coleman Sleeping Bags, and Conair Hair Dryers. BRAND NAMES sell. Look at your potential product, and ask yourself honestly if YOU would buy it on the ‘Net.

Set your price

Take the five lowest prices you collected on a product in your list that has survived the above. Calculate your estimated cost, then subtract that from the lowest price. If you don’t see at LEAST 15% profit, don’t bother.

If you do, there are a couple of ways to proceed. You can undercut the lowest price in your “venue” by a bit, and hope to “kick off” the product and get yourself noticed. Chances are, though, that the following week you’ll find that someone has undercut YOUR price by just a bit. That becomes a losing game.

I generally set up a couple of “loss leaders”. These are desirable items (in my general product line) that I sell dirt cheap just to bring in customers. Then I price the rest of my products at the second or third lowest price in my venue. The customers come in for the loss leaders, and then I can market everything else to them via email. I spend a lot of time making my site look better and easier to navigate, and pay a great deal of attention to my customers.

That makes me more reputable in the eyes of the customer. You’ll find that people don’t mind paying just a little more if they feel comfortable in your store. They don’t like to worry that they’re buying from a “hack” who may not deliver. Nothing says “hack” like a cluttered, confusing storefront.

Follow up

After you’ve sold an item for a month or two, revise that “cost of goods sold”. Measuring past performance is just as important as setting the correct price to begin with. If sales drop, recheck your competition. If that’s not it, drop the product, or shelve it until the “season” comes back around. Don’t get sentimental about your products, and NEVER just let your store sit there in limbo once it starts to make money. This is a dynamic business; stay on top of it!

A last word (or three)

Retail pricing on the Internet is so fraught with permutations that it would be impossible to cover everything here, even if I KNEW everything. The steps above are just the basics of a process that works for me. Hopefully something here will strike a chord and work for you as well. Patience and persistence are the keys to a successful Internet business, so hang in there, and don’t quit the day job for at least a couple of weeks. ;o)

I hope this helps in your future marketing decisions.