To help set you straight, I’ve listed the top 4 myths about wholesale buying that seem to derail new sellers every day of the week:

Myth #1: Buying products in wholesale quantities means buying them at at least 50% less than the retail price.

Sorry to start out on a bad note, guys, but this is seriously incorrect! In reality, the wholesale cost of an item is usually 5-35% below the retail cost. Some big-time sellers with massive buying power might be able to get better discounts when they are in a position to buy in big bulk. Wholesale buying is a volume game: the more you buy, the less you pay per unit. But, if you are thinking you can buy a container load of jeans for a just a few hundred dollars, you would be wrong.

Myth #2: Wholesale suppliers won’t want to deal with me; I’m just an eBay seller making 30 sales per month.

Wrong! The truth is plenty of suppliers are more than happy to deal with the likes of eBay sellers. While you might only make smaller orders through them, it’s all the smaller businesses that are often the backbone of a supplier’s business. After all, a supplier who relies on the success of 3 or 4 major buyers is not really safe-guarding their business!

When checking out new suppliers to deal with, you might find that they have a very high minimum order which you cannot meet. However, I suggest that you email the supplier anyway and see if they will make an exception: suppliers know that they need to support new and small sellers in order to help them grow their business and stat placing those big orders.

Myth #3: You can buy designer branded goods like clothing, sunglasses, and jewelry for next to nothing, and resell them for enormous profits.

This is a particularly popular one. If you think you can buy an authentic Louis Vuitton handbag wholesale for less than $100, and resell it for $500, you are sadly mistaken. While it is possible to buy the latest designer handbags, the sad truth is, unless you are buying them from an authorized distributor, hey are highly likely to be fake.

While there is a consumer demand for fakes, selling them is 100% illegal. eBay has a whole division dedicated to checking that all designer and branded goods sold on their site are the real deal. If they cotton on to you selling anything less, you will have your account closed pronto. Worse still, if Customs catches you importing fake items, you could face heavy fines and imprisonment.

To sell most designer branded goods legally, you need to become an authorized reseller. This means jumping through some very high hoops. For example, some brand owners require you to have a brick and mortar retail store and a very high sales turnover (think $100,000 per year).

You are much more likely to be successful when selling non-branded everyday items like sporting or hobby equipment.

Myth #4: The best wholesalers can only be found online

While the internet certainly makes it easier for us to find new suppliers, and instantly price-up potential items, it would be a mistake to overlook the many other product-sourcing avenues available.

So what other options do you have?

• Trade Shows:

Tradeshows are exhibitions organized by industry leaders to showcase new products. They are a great way to stay ahead of trends and find new niche items to sell. Tradeshows are also a great way to build relationships with big suppliers. This can go a long way in getting you better deals and greater access to new, hot products. To find tradeshows in your area, you can simply search Google for the keywords “trade show” + the name of your area, or visit BizTradeShows.com.

• Trade Magazines:

Trade magazines such as The Closeout News are a great way of finding new suppliers and hot deals on wholesaler items. This is how the wholesale industry used to operate – before the days of the internet!

What makes trade magazines so valuable is that very few online/eBay sellers use them as a product sourcing method, but plenty of suppliers continue to list their there (and some only list in print publications), so the prices get driven down in your favor.

So which of these myths did you fall for? Let me know the biggest lesson that you’ve learned about wholesale sourcing!

About the Author: Alice Delore is a copywriter for SaleHoo wholesale directory (http://www.salehoo.com). She also regularly publishes work on the SaleHoo blog (http://www.salehoo.com/blog).

Getting the click – Our first goal was to increase the amount of clicks we were getting, based on the same number of listings.

1. Work on the product image – The product preview image which buyers see in their search result can really make a difference. It will help your listing stand out in the sea of listings and you can use it to communicate a marketing message, such as ‘same day dispatch’ at the bottom of the image.

2. Experiment with product titles – After optimising your image, look at the product title with the aim of making it more appealing to buyers. By all means do experiment, but don’t forget to keep the product keywords in the title. My suggestion is to use the matrix of [product title - Unique Selling Proposition], for example [ipod leather holder in black - cheapest on eBay], [ipod leather holder in black - get free gift], [ipod leather holder in black - free delivery] etc

3. Make the title stand out – After experimenting and based on the clicks and sales that each title received, pick one and make it stand out. To achieve this, you can try to place uncommon characters in the title (those which eBay permits such as <>,# etc), use upper case for the first letter of each word in the title, place your phone number, use symbols and so on. The important step is to keep your keywords in the title and just experiment.

4. Use enhanced listing wisely – eBay’s own tools to enhance your listings are great, but come at a price. For some products it’s worth using the bold and sub-title option in particular. Use the sub-title field to provide further product description and include a call to action.

Convincing the unconvinced – Our second goal was to reduce the amount of pre-sale inquires we received because they highlight buyer’s question marks. If listings are unclear then potential buyers will simply move onto another seller.

5. Write your own product description – Great product copy is essential for getting the sale. It should address all the concerns buyers have before buying the product and provide an accurate description of what they’re buying. We found it useful to include answers to questions buyers were asking and to show why we’re different from our competing sellers within the copy. If your idea of a product description is to copy and paste the manufacturer’s description, it might not be enough. Write your own.

6. Work on product offers – If you also sell away from eBay, for example in your standalone store, you know the value of product merchandising and offers. The same should be applied to your eBay store to make your offer more convincing. Consider offers such as free gifts, upgraded delivery methods, discount on future orders and more.

7. Pay attention to feedback – Many buyers scan through your feedback before buying. Try to follow up with buyers to get as much feedback as you can and in particular ask buyers to rate you. If negative feedback was left, take the time to publicly respond to the feedback and accept the blame (if that is, it’s your blame).

Closing and getting the sale – Our third goal and the holy grail for any eBay seller was to get our figures up.

8. List your call to action – The same with any type of advertising, you want to direct buyers to take an action. If your listing page is long, place several calls to action across the page.

9. Offer alternative payment options – The vast majority of eBay buyers are likely to use PayPal as their payment means. Some however might want to pay by credit card or cheque and some by telephone order. By offering those options you’re creating a competitive advantage over your competitors.

10. Prioritise eBay customer service – eBay buyers are expecting high levels of customer service from your part, but most will look for it after the sale. If however you offer exceptional service before the sale takes place, you might capture the buyer while they’re still signed in on eBay and it reinforces your credibility.

I hope you found my selling tips useful.

Recently I’ve received some questions from a reader about this subject, seeking clarification on whether feedback transfer is authorised from ebay and if the article is still relevant.

Q. If it’s against ebay policy to transfer feedback to another website, how are some of other auction websites like ioffer.com and bonanzle.com have feedback transfer programs? Do they have some special agreement with ebay?

The latest ebay agreement still states that you are not permitted to transfer your feedback to any other non ebay site. I consulted Bonanzle customer services over the issue, who openly admitted that “We have no agreement with eBay for this, nor does the other alternatives who also import feedback from eBay and other marketplaces.  We have had zero instances of trouble with this”

Q.  How do these programs verify that you are the correct person? I don’t want somebody else using my ebay name to get my feedback.

Most of these services ask you to verify it’s your feedback by entering your ebay username and password – this should never be stored by the alternative auction site so it’s important to read the terms and conditions first. If you’ve any doubt or concerns about the security of this, simply avoid the issue by not transferring your feedback.

I’ve heard no reports of ebay closing individual accounts who transfer their feedback to alternative auction sites, and it’s good to know that ebay are not pursuing those auction sites yet. However it’s important to be aware of the risks -  however minimal they are, that your ebay account could be closed.  I’d love to hear your thoughts on transferring feedback to other sites? Have you done it and would you recommend it?

We’re also keen to learn about other local sites, as I’ve recently discovered in Poland,  Allergo is the market leader with eBay coming in second place.

Comment below with your opinion or experience of any alterative ebay site or join the AuctionCUT Ebay alterative category here.

As usual, please don’t spam the blog with your comments as they will not be approved (comments are now moderated) and take the time to read our comments policy first.

Simon Brew, the editor emailed me earlier in the year asking if it would be possible for me to contribute but sadly time restrictions did not allow it. I would be very interested in seeing who did and am sure they’ll be some familiar and trusted names offering the best advice for making money on eBay.

The cost is £7.99 – if your struggling to find it in your local newsagent, it’s possible to order it direct from Dennis Publishing here .

Enjoy the read & I look forward to hearing your feedback on the guide.

With 49 video lessons, each with an accompanying article great effort has gone into creating SkyHigh Auctions. The AuctionCUT competition is open until 6th March, midday GMT & you just need to register and give your answer in this thread to have a chance of winning.

Alternative Auction Sites

AuctionAir

AuctionAir is a site I mentioned at AuctionCUT last March. It launched in 2001 and is a former project of British Airways. Unlike eBay, AuctionAir uses sealed bidding meaning you can not see how much other users are bidding completely eliminating the need to get involved in a bidding war. According to their website 1 in 7 users who placed a bid last year won an auction.

Telebid

A different auction model again, TeleBid offers mostly high value electrical items such as iPods, laptops and mobile phones all starting at 10p. It costs 50p to place a bid on any item, and with each bid placed the price of the auction increases by 7 or 10p. It does look like a fun site, but I imagine it’s easy to get carried away.

Competition

Our friends over at Power Sellers Forum are running a competition to design the best eBay template. The prize is being kept quiet at the moment, but it’s well worth entering especially as the template doesn’t have to be new. It can be one your already using on eBay & the competition is being judged by members of the forum. Details here.

- either leaving it as it is now with both parties deciding when & how to leave it
- once they have paid for their item then sellers can only leave them positive feedback or
- finally the option that ebay itself automatically leaves feedback when the buyer pays quickly.

It goes without saying that this has once again sparked off the old argument, who should leave feedback first -buyers or sellers? with no signs of movement in either side.

Skip McGrath, over at Auction Seller’s Resource reflects on some of the some of the more bizarre emails he gets from his eBay buyers, customers and readers to his blog. Seems like you can’t please all the people all the time. One of the best messages being with reference to a product called Ten Profitable Ebay Niches:

Product: Ten Profitable eBay Niche
message: I need to get a refund for this item. It looks like a lot of work. I look for free money from eBay.

If anyone can get me free money from eBay BTW, please drop me an email

More importantly what are these creatures called? is the topic of conversation at Ebay Strategies with Scott Wingo. Ebay’s latest feature, http://bestof.ebay.com/ which showcases the more interesting and bizarre items being auctioned has introduced these strange creatures to us. BestOf eBay is a digg like experience with users able to vote for each listing. Meanwhile I’m sure Scott will be relieved when he finds out exactly what they are called. Any ideas?

Reputation.  A solid reputation is always a good thing, and it gives a potential buyer the added peace of mind in knowing that their transaction with you will be a successful one.  If you’re new to eBay or the internet in general, don’t be discouraged.  Everyone is new at some point, right?  The best thing that you can do is to tell buyers that you’re new and hoping to build a longstanding relationship with a world of customers.  It never hurts to offer an incentive, such as free shipping, to garner interest.

Timely Shipment.  There are certain times of the year, such as near the holidays, when shipping times are extremely important.  Whether your buyers are looking for a last-minute gift idea or they are simply anxious to receive their order, it’s important to ship items in a timely fashion.  Most mail-order businesses promise delivery within 7-10 business days unless otherwise noted.  As an eBay seller, it’s important that you let your buyers know how long it will take for you to ship their purchase and which shipping companies you use.  Some people may prefer one delivery company over another, so it’s important to be flexible in terms of your shipping method.  Additionally, you should consider offering both standard and express delivery options for those who are in a hurry to receive their order.  Always remember to purchase and keep the tracking number, which your shipper will provide, incase there is a problem or delay with the delivery.

Selection.  As an eBay seller, one of your greatest assets is the ability to offer a large amount of products at a minimal cost.  You could conceivably start your own business with very little money paid upfront due to the fact that you can list a lot of products for sale without spending a fortune.  Instead of opening a physical storefront, paying rent, insurance and utilities, all you will need is a computer, an internet connection and the inventory ready for shipment.  When you make the decision to list an item on eBay, buyers may wish to see what else you are offering for sale and this means a wider selection could lead to a wider customer base and increased income.

Photos.  If you are buying something over the internet, one of the most important qualities that a product can have is a clear photograph.  When your buyers cannot physically touch a product, there is an added challenge in making them see how great the item is.  As an eBay seller, it’s up to you to paint a picture in their mind and an important part of that is to show them an actual photo of the product that showcases its best features.  Some things to consider are lighting, background and camera angle.  If you’re using a digital camera, you can instantly see which photos are good and which are not, but the task changes when using a regular camera.  In this instance, you may want to take several photographs so that, hopefully, at least one will turn out perfectly during development.

Payment Options.  When doing business online, it’s important to keep in mind that not everyone can or will use the same payment method when shopping.  This means that, as an eBay seller, you may wish to consider a range of payment options to ensure that your buyers can complete the transaction with ease.  Additionally, the more payment options you accept, the wider your customers base can become.  For instance, if you refuse to accept personal checks, the only people who could shop with you would be those who have credit cards or don’t mind getting out and going to the post office to mail a money order.  At the same time, if you were to rule out all payment methods with the exception of a money order, you would prevent those who enjoy the convenience of online payments from shopping with you.  Some tips to keep in mind with various payment methods include making sure to hold all personal checks until they clear (typically 10-15 business days) and to ship only to a confirmed address that matches the billing address.

Only lasting for ten minutes or so, there are no excuses for not listening. It’s main question is whether to start your auctions at a high or low starting price – With the advantages of both explained, you can download it at The Times Online.