Here’s my list of guidelines to follow when comparing your wholesale prices to eBay deals.
Compare prices with brand new products only
As you know eBay is a place where you can sell almost anything and in any situation. Many make the common mistake of comparing prices found on eBay for use or “like new” items.
When comparing prices found on eBay, always choose products that are brand new and in the original sealed box. You can also ask for a manufacturer’s warranty, which is usually one year. This will confirm that the item is truly brand new. Comparing prices with used or “like new” items will not be an accurate price comparison.
Many sellers also sell refurbished products, which can be confused as brand new products. Refurbished products are defective products that were returned to the manufacturer, then repaired and repaired and re-marketed for a lower price.
Compare prices including shipping
Many eBay sellers will try to entice you into their auction by advertising a lower sale price, but they will increase shipping costs to make up the difference. When comparing prices, be sure to look at their shipping and handling costs. Simply add shipping and handling to sell the price of the item to get the exact total cost. The import price to compare is the actual total cost.
Compare prices with BUY NOW only
Many sellers will make the mistake of looking for eBay auctions to compare prices without specifying auction searches only with BUY NOW NOW. This can be confusing as some will compare the current offer with the wholesale price of the supplier. This is not an accurate way to compare prices, as auctions may have reserve prices at auctions, which may result in the auction not being sold if the reserve price is not met. To avoid this confusion, simply compare prices with auctions that only buy NOW.
Compare only the wholesale price with the average prices
When comparing your wholesalers to eBay prices, always look at the sale prices of at least 4 or 5 items and calculate the average selling price of those auctions. Many make the mistake of looking at only the lowest prices. This can be very misleading as not everyone will buy eBay the absolute lowest prices on eBay. In many cases, these auctions are set up by people who have already bought items and changed their minds and are trying to get rid of the items by selling them at lower prices on eBay. The fact is that in such cases, these low-priced products will no longer be available after the auction has been sold. You need to look for auctions that sell the same product all the time and consistently with consistent selling prices, and always keep in mind that not everyone will buy the cheapest items on eBay.
It is bought in large quantities
If you have applied the technique above and are still finding auctions with prices below the total cost, these auctions may come from sellers who buy the item in large quantities at a discounted price. This can definitely give you a market advantage, but this requires up front investment as opposed to selling Dropship products.
Suppliers liquidating their products
There are times when you just can’t compete. In some cases you will notice that prices are simply impossible to beat, and this can happen in cases where a large store decides to liquidate its products. Have you ever moved to Walmart to find this DVD player with a 70% discount? It happens all the time. In cases like this, unfortunately, there is no way to compete and you would simply switch to a different product for sale, but always keep in mind that such liquidations are always temporary and will only last until the stock is exhausted.
Avoid products from China
These days, many people sell products from China that are very difficult to compete with. In my personal experience, I have seen a large number of product refund requests shipped directly from China, and in some cases custom fees may apply at the time of delivery.
When comparing prices with items sold on eBay, always make sure that you select auctions for products located in the US. Avoid comparing prices with items shipped from China or any other non-US country.
A case study
I once knew of a lady who used to sell tones on eBay selling a very simple product. Out of all the millions of products from boat suppliers, this lady decided to sell only one product. The item she chose was a “fish tank aquarium heater”, which I had never been a boss before. It turns out that this product was in high demand and its sales increased for several months. She then switched to a different product and maintained the momentum of sales by choosing a different one every 6 months.