[AMA] Importing & wholesaling for resale on eBay.

[Motley crue]

Hey Ecom man, great post, since I've read it I've been looking at trying to get into the game but I have a few questions
1. What do you need legally as in permits and business contract etc etc and how much does it cost or do you just not bother with any permits?
2. Do you have a store on eBay
3. What kinds of problems have you come across so far
4. How do you go about taxes
5. And finally (if you don't mind answering) what kind off salary are you pulling down
Sorry if I'm asking questions that have already been asked and answered earlier in the post

 

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[Ecom man]

Hey Ecom man, great post, since I've read it I've been looking at trying to get into the game but I have a few questions
1. What do you need legally as in permits and business contract etc etc and how much does it cost or do you just not bother with any permits?
2. Do you have a store on eBay
3. What kinds of problems have you come across so far
4. How do you go about taxes
5. And finally (if you don't mind answering) what kind off salary are you pulling down
Sorry if I'm asking questions that have already been asked and answered earlier in the post

1. When I started out I didn't really worry about anything permit wise etc. Every state/country is different so in your area it might be required. I just ran it as a sole proprietor business and left it at that.
2. I do not have an eBay store and never have. I have actually stopped selling on eBay entirely at this point and am selling solely on my own website currently.
3. Problems have been everything from A to Z. Damaged packages, scam buyers, cheating competition, eBay algorithm changes, eBay always changing the rules, etc etc etc.
4. I have always just filed taxes as self employment income. As you start to make more money you will probably want to set up some different entities. Talk with a qualified tax person to see what is best in your situation.
5. Salary I am currently taking from the business is around $1,500 a month. We are currently taking as little out of the business as possible and reinvesting every dollar of profit back into more products and inventory. Reinvesting as much profit as possible will allow you to grow much faster. Up until March or so of this year I had another job so I could reinvest even more back into the business. Profit for the year... Let's just say my wife and I will be moving to Arizona the first part of next year and buying a new house.

 

[Ecom man]

Sorry double posted

 

[mbj316]

1. When I started out I didn't really worry about anything permit wise etc. Every state/country is different so in your area it might be required. I just ran it as a sole proprietor business and left it at that.
2. I do not have an eBay store and never have. I have actually stopped selling on eBay entirely at this point and am selling solely on my own website currently.
3. Problems have been everything from A to Z. Damaged packages, scam buyers, cheating competition, eBay algorithm changes, eBay always changing the rules, etc etc etc.
4. I have always just filed taxes as self employment income. As you start to make more money you will probably want to set up some different entities. Talk with a qualified tax person to see what is best in your situation.
5. Salary I am currently taking from the business is around $1,500 a month. We are currently taking as little out of the business as possible and reinvesting every dollar of profit back into more products and inventory. Reinvesting as much profit as possible will allow you to grow much faster. Up until March or so of this year I had another job so I could reinvest even more back into the business. Profit for the year... Let's just say my wife and I will be moving to Arizona the first part of next year and buying a new house.

Would you say that this is still a viable business model for someone to pursue without already having an established customer base? I've been following this thread for about a year and during that time I successfully managed to import and sell a couple of products for a decent profit, but those profits ceased as I was unknowingly selling counterfeit items (mostly health & beauty brands that I had never heard of) and got VEROd. Since then, I've had difficulty finding generic or foreign branded items to import.

The purpose of my reply isn't necessarily to ask for help with finding products, as I've read through the 70+ pages of this thread more than once. I'm only asking if there are realistically still enough products out there that one can import without already having an established selling presence to drive sales (i.e. eBay power seller, high ranking SEO website, etc.). The online marketplace today is drastically different than it was even a year or two ago, in which case it seems that the majority of merchants on sites like Alibaba and DHgate are also selling on eBay. I know you've mentioned that being a U.S. seller can be used as leverage when competing against Chinese sellers, but I'm unsure of whether or not this is enough to truly make a difference once you factor in shipping costs and what not.

Thank you in advanced for your input!

 

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[exclusives88]

Would you say that this is still a viable business model for someone to pursue without already having an established customer base? I've been following this thread for about a year and during that time I successfully managed to import and sell a couple of products for a decent profit, but those profits ceased as I was unknowingly selling counterfeit items (mostly health & beauty brands that I had never heard of) and got VEROd. Since then, I've had difficulty finding generic or foreign branded items to import.

The purpose of my reply isn't necessarily to ask for help with finding products, as I've read through the 70+ pages of this thread more than once. I'm only asking if there are realistically still enough products out there that one can import without already having an established selling presence to drive sales (i.e. eBay power seller, high ranking SEO website, etc.). The online marketplace today is drastically different than it was even a year or two ago, in which case it seems that the majority of merchants on sites like Alibaba and DHgate are also selling on eBay. I know you've mentioned that being a U.S. seller can be used as leverage when competing against Chinese sellers, but I'm unsure of whether or not this is enough to truly make a difference once you factor in shipping costs and what not.

Thank you in advanced for your input!

To add to what you have said, it seems that all of the products on alibaba, dhgate, and aliexpress are so easy to be found that everyone is selling the exact same products found on those websites. It has also been a year and I have not found any luck finding a product that I will not pursue in large quantities. Finding a product that isn't already sold (this also includes the exact same model that is just private labeled) is almost impossible. Most of these guys are just wholesalers too. I am planning on going to the Canton Fair this October and hopefully this will open up more opportunities.

 

[Fatal Jay]

So you guys have had no trouble buying off alibaba? It's a few items I want to buy wholesale from that site

 

[Ecom man]

Would you say that this is still a viable business model for someone to pursue without already having an established customer base? I've been following this thread for about a year and during that time I successfully managed to import and sell a couple of products for a decent profit, but those profits ceased as I was unknowingly selling counterfeit items (mostly health & beauty brands that I had never heard of) and got VEROd. Since then, I've had difficulty finding generic or foreign branded items to import.

The purpose of my reply isn't necessarily to ask for help with finding products, as I've read through the 70+ pages of this thread more than once. I'm only asking if there are realistically still enough products out there that one can import without already having an established selling presence to drive sales (i.e. eBay power seller, high ranking SEO website, etc.). The online marketplace today is drastically different than it was even a year or two ago, in which case it seems that the majority of merchants on sites like Alibaba and DHgate are also selling on eBay. I know you've mentioned that being a U.S. seller can be used as leverage when competing against Chinese sellers, but I'm unsure of whether or not this is enough to truly make a difference once you factor in shipping costs and what not.

Thank you in advanced for your input!

For sure the market has become more saturated over time as more people get into the business. The answer to that is provide value in ways they aren't. Shipping times is a huge value add. Answer your email questions/ eBay messages immediately. Go above and beyond in every aspect of the business and there is plenty of opportunity to be found. I've never done a website or anything before Febuary of this year. My sales and profits vs eBay last year, they are through the roof. I am running at 5-6 times more sales this year than last. My SEO knowledge, website experience, marketing experience etc. is none whatsoever.

This is one of the best times to start an online business! eBay is becoming overrun with crappy sellers from all over (the USA included). They don't care about customers they don't care about adding value they are just in it for the money! That allows me the opportunity to go above and beyond as a seller and they are so astonished they tell all their friends. I'm selling some of the exact same products on my website that I sold on eBay. My price is 50% higher than people can buy it for on eBay but they buy it from me. Why??? Because I'm adding value! I'm shipping it the same day. I'm answering questions within minutes of receiving them. I'm going above and beyond what every customer expects. My sales... They are reflecting that I am adding value to the customer's purchase.

 

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[Ecom man]

So you guys have had no trouble buying off alibaba? It's a few items I want to buy wholesale from that site

Anytime you buy from any site only pay through a secure method. (PayPal, Credit Card, etc.) Don't ever use bank transfer or western Union. You are just asking to be scammed using those payment methods. Even when paying via CC start off with a small order. You need to verify the quality is what you are expecting etc.

 

[Thundarr]

I struggled with the same thing when I was starting. I still have lists in my email that I paid a lot of money to buy and most websites were inactive or not good margins.

I use three main sites for importing dhgate.com alibaba.com and aliexpress.com. A lot of people will tell you that these sites are tapped out etc etc etc. I can tell you with millions of products available in the world they are not even close to tapped out.

I was doing research on alibaba this morning and found a product that I can double my money on. It can be time consuming to find products but it is well worth it.

A couple of tips for you, stay out of any electronic market (phones, tablets, cords, etc.) most of those are run by high volume low margin folks. Second, look for things that people need to use. Look around at business places at friend's houses etc. what do they need to use every day. Once you have a list go on all three sites and see if it has margins that will work.

Hi can you give us an example of what people or businesses use everyday?

Sent from my LG-D850 using Tapatalk

 

[Ecom man]

Hi can you give us an example of what people or businesses use everyday?

Sent from my LG-D850 using Tapatalk

I can give you some quick steps for businesses
1. Get off the couch
2. Go on a walk to the business district.
3. Walk around each store, restaurant, & business.
4. Write down everything that an employee or customer uses.

For stuff people use.
1. Stay on the couch.
2. Grab an Internet capable device.
3. Google

 

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[mosquito]

Congratulations on your success Ecom. First of I would like to thank you for providing us with outstanding information.
If you were doing it now all over again, with all the knowledge that you have, would you start on ebay and then move to own site, or start with a site?
Do you still use ebay to test new products?

 

[Ecom man]

Congratulations on your success Ecom. First of I would like to thank you for providing us with outstanding information.
If you were doing it now all over again, with all the knowledge that you have, would you start on ebay and then move to own site, or start with a site?
Do you still use ebay to test new products?

If I were to start from scratch with the knowledge I currently have I would set up my own website and never sell on eBay at all. On my site the margins, sales, control, and profit is all so much better. I learned a ton of things while selling on eBay don't get me wrong, but with the knowledge I have today I would go straight to a website. For a new seller or importer it would probably be better to go on eBay. The fact of not having to bring in your own traffic is why many people stay on eBay. Being in control of their own destiny scares people. If you sell on eBay you can blame lots of factors if you fail. If I fail at my website it is one person's fault.... Mine.

 

[Paul David]

How do you find competing with Amazon and eBay for search engine rankings on Google? It seems most of the time eBay and amazon are position 1 and 2 in the search results for most products I search for!

Sent from my D5803 using Tapatalk

 

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[Ecom man]

How do you find competing with Amazon and eBay for search engine rankings on Google? It seems most of the time eBay and amazon are position 1 and 2 in the search results for most products I search for!

Sent from my D5803 using Tapatalk

There is no way to compete with Amazon and eBay for the top positions, but paid ads are higher on the page than even Amazon or eBay. Advertise through Google Adwords and you can be above them or on the side of the page with the ads.

 

[Paul David]

There is no way to compete with Amazon and eBay for the top positions, but paid ads are higher on the page than even Amazon or eBay. Advertise through Google Adwords and you can be above them or on the side of the page with the ads.

We had issues with Google not showing low search volume keywords when doing adwords.

Google shopping results however doesn't have this problem so I'm hoping when we roll that out shortly we'll see a boost in website sales.

Sent from my D5803 using Tapatalk

 

[Dicky Dee]

There is no way to compete with Amazon and eBay for the top positions, but paid ads are higher on the page than even Amazon or eBay. Advertise through Google Adwords and you can be above them or on the side of the page with the ads.

Quick question about adwords, since you're selling products do you advertise with Google Product Listing Ads or the Text Ads?
I havent had any luck yet with my Text Ads, i'd really like to get the website traffic going so i dont have to rely on ebay anymore for sales like you did.

Also is your website niche specific or are you just throwing all your different products on the site?

 

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[Ecom man]

Quick question about adwords, since you're selling products do you advertise with Google Product Listing Ads or the Text Ads?
I havent had any luck yet with my Text Ads, i'd really like to get the website traffic going so i dont have to rely on ebay anymore for sales like you did.

Also is your website niche specific or are you just throwing all your different products on the site?

I am just using text ads. Each product has its own ad pointing that that specific product's page. I do have all my products in Google shopping as well.

I have just thrown all my products onto one website at this point. After Christmas I will be separating each niche onto its own website with its own specific advertising. My end goal is to sell each business separately or as a group by the time I'm 30. (3 years from now) I might keep one of the sites that is a huge cash producer and just sell the rest hence why I'm making them all separate entities.

 

[Dicky Dee]

I am just using text ads. Each product has its own ad pointing that that specific product's page. I do have all my products in Google shopping as well.

I have just thrown all my products onto one website at this point. After Christmas I will be separating each niche onto its own website with its own specific advertising. My end goal is to sell each business separately or as a group by the time I'm 30. (3 years from now) I might keep one of the sites that is a huge cash producer and just sell the rest hence why I'm making them all separate entities.

If you're on google shopping wouldnt that be product listing ads? Have you found google shopping or text ads to have a better ROI?

Here i thought you were much older but turns out you're only a bit younger then me!

 

[albertut77]

If I were to start from scratch with the knowledge I currently have I would set up my own website and never sell on eBay at all. On my site the margins, sales, control, and profit is all so much better. I learned a ton of things while selling on eBay don't get me wrong, but with the knowledge I have today I would go straight to a website. For a new seller or importer it would probably be better to go on eBay. The fact of not having to bring in your own traffic is why many people stay on eBay. Being in control of their own destiny scares people. If you sell on eBay you can blame lots of factors if you fail. If I fail at my website it is one person's fault.... Mine.

Regarding this, how many customers (%) do you think/know you've gotten from eBay to your website, and how many are genuinely new via Google Adwords? Just a rough estimate.

I've got my webpage ready, just waiting for a big change in my life before I get the stock and launch it all. I've also been getting into FB webpages about this and I got really surprised about this one kid (very entrepreneurial 16yo) that just launched his own webpage with 4-5 products. Very simple shopify and clean, with a cool logo that he got out of Fiverr (strongly recommended). The guy knows his niche, and is playing his cards right. He made a FB page for his products and wrote ONE post showing one of the products and linking to his webpage. Paid $10 in Facebook ads and in a couple of days he had 2k+ likes and a few hundred shares and comments. He's probably selling like crazy.

What I'm trying to say with this is that when I was making my webpage I always wanted to have everything perfectly detailed and finished before I launched it, with all my products properly set and all the stock in. But it truly doesn't matter that much. As long as the product is attractive, a simple website will do. I'm also definitely gonna make a FB page and pay some FB ads. Have you had any experience with FB ads, Ecom man?

P.S. Hah I thought you were quite older! That's pretty amazing.

 

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[Ecom man]

If you're on google shopping wouldnt that be product listing ads? Have you found google shopping or text ads to have a better ROI?

Here i thought you were much older but turns out you're only a bit younger then me!

Google shopping has better conversions etc. but the text ads bring in more total sales.

 

[Ecom man]

Regarding this, how many customers (%) do you think/know you've gotten from eBay to your website, and how many are genuinely new via Google Adwords? Just a rough estimate.

I've got my webpage ready, just waiting for a big change in my life before I get the stock and launch it all. I've also been getting into FB webpages about this and I got really surprised about this one kid (very entrepreneurial 16yo) that just launched his own webpage with 4-5 products. Very simple shopify and clean, with a cool logo that he got out of Fiverr (strongly recommended). The guy knows his niche, and is playing his cards right. He made a FB page for his products and wrote ONE post showing one of the products and linking to his webpage. Paid $10 in Facebook ads and in a couple of days he had 2k+ likes and a few hundred shares and comments. He's probably selling like crazy.

What I'm trying to say with this is that when I was making my webpage I always wanted to have everything perfectly detailed and finished before I launched it, with all my products properly set and all the stock in. But it truly doesn't matter that much. As long as the product is attractive, a simple website will do. I'm also definitely gonna make a FB page and pay some FB ads. Have you had any experience with FB ads, Ecom man?

P.S. Hah I thought you were quite older! That's pretty amazing.

Probably 99% of my sales are from new customers brought in through Adwords. I had a few people follow me over to buy from my new site but that number was far lower than what I originally thought it would be. I have not done any Facebook ads as of yet. I will probably throw some up around Christmas just to get some more exposure/ impulse buys.

 

[Dicky Dee]

Probably 99% of my sales are from new customers brought in through Adwords. I had a few people follow me over to buy from my new site but that number was far lower than what I originally thought it would be. I have not done any Facebook ads as of yet. I will probably throw some up around Christmas just to get some more exposure/ impulse buys.

Do you include inserts with your orders that you ship out? Thats what i do currently and is the only thing that has worked as of yet in terms of sales, with every item purchased i ship it out with a thank you card with my website and a promo code.

I also use an automated email tool to email paypal purchases to get them to opt in to my email list, that also includes my website and info.

 

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[mbj316]

I am just using text ads. Each product has its own ad pointing that that specific product's page. I do have all my products in Google shopping as well.

I have just thrown all my products onto one website at this point. After Christmas I will be separating each niche onto its own website with its own specific advertising. My end goal is to sell each business separately or as a group by the time I'm 30. (3 years from now) I might keep one of the sites that is a huge cash producer and just sell the rest hence why I'm making them all separate entities.

That's great!

I have a few questions: 1) what website builder are you using for your online store? 2) are you taking your own product pictures or using supplier photos? and 3) do you have a blog or anything that incorporates SEO and keywords, other than the product description page, to drive traffic to your page?

I'm having a hard time building a website that doesn't appear overly sparse or "flat"/dull. The information is all there and the design is decent, but there's just something that it's lacking.

 

[Ecom man]

Do you include inserts with your orders that you ship out? Thats what i do currently and is the only thing that has worked as of yet in terms of sales, with every item purchased i ship it out with a thank you card with my website and a promo code.

I also use an automated email tool to email paypal purchases to get them to opt in to my email list, that also includes my website and info.

I just included a post card (Made and ordered from vistaprint) in with each order with a coupon code for 10% off anything on my site. I don't sell on eBay anymore but I still include the card with each purchase with a coupon code for their next purchase.

 

[Ecom man]

That's great!

I have a few questions: 1) what website builder are you using for your online store? 2) are you taking your own product pictures or using supplier photos? and 3) do you have a blog or anything that incorporates SEO and keywords, other than the product description page, to drive traffic to your page?

I'm having a hard time building a website that doesn't appear overly sparse or "flat"/dull. The information is all there and the design is decent, but there's just something that it's lacking.

1. I set up my site through shopify
2. I take my own pictures
3. I don't have a blog or anything like that for SEO purposes.

A sparse website can still get sales of you have good products. I helped my sister get a site set up and she has 5 products total. Her sales aren't amazing but with 5 products it isn't impossible.

 

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[Ryan D.]

I actually read through all of the pages so I know this hasn't been asked....

I understand the request for a sample to "test" quality from a supplier. However you guys then talk about going back and ordering 50-100 from them. Do they not expect you to adhere to their MOQ after the "sample"?

What type of startup capital are you guys using?

Seems like you need to have/find a few products to get the ball rolling. Then use additional capital to add more products. Obviously you don't want to buy large quantities until things are moving.

 

[albertut77]

I actually read through all of the pages so I know this hasn't been asked....

I understand the request for a sample to "test" quality from a supplier. However you guys then talk about going back and ordering 50-100 from them. Do they not expect you to adhere to their MOQ after the "sample"?

What type of startup capital are you guys using?

Seems like you need to have/find a few products to get the ball rolling. Then use additional capital to add more products. Obviously you don't want to buy large quantities until things are moving.

Hey Ryan. I haven't had to order the MOQs they say in the first place yet after a sample test. To be honest I haven't been testing many products, but the ones I have I've always ordered under my terms. Ordering more of course has reduced the price/unit, but it hasn't compromised the order.

I can't remember exactly, but when I finally decided to make my first sample order I spent around 200-300€ tops. A couple of the products were winners so I got more of those spending around 500-600€ (mostly all the money I got from my sample investment). As you say, when the ball got rolling the orders got bigger.
I remember though it was a HUGE pain in the a$$ that PayPal would hold my money for a couple of weeks. Since my private budget was quite tight, I couldn't get big orders, and the stock I got was all bought before PayPal started releasing my money, so my listings always ended before I could refill stock. Good problems, I guess. If you have enough capital to get your samples, see how they sell and then be able to make further orders without relying on the money from those sales, you won't have to worry about that.

Yes, probably one of the things I would emphasize the most is to take it step by step. I'm quite the impatient kind, always have been, so you can imagine how frustrating it was to wait a week just to get samples, then wait to sell them, then for the money to be released, buy again, wait, etc. until I had enough capital to refill stock on time. Well, a couple of the sample products I first ordered turned out to be blatant knock-offs that were no good at all. Thank god I just ordered a very small amount, so my losses were ridiculous.

Take it little step by little step and you should be all right. Good luck!

 

[mbj316]

I actually read through all of the pages so I know this hasn't been asked....

I understand the request for a sample to "test" quality from a supplier. However you guys then talk about going back and ordering 50-100 from them. Do they not expect you to adhere to their MOQ after the "sample"?

What type of startup capital are you guys using?

Seems like you need to have/find a few products to get the ball rolling. Then use additional capital to add more products. Obviously you don't want to buy large quantities until things are moving.

Like the first reply, there is really nothing set in stone in terms of price or MOQ, especially when dealing on Alibaba versus DHgate. Ultimately, they are trying to get the sale, so for the most part they are willing to work with you to make the transaction happen. I ended up using DHgate for my first few orders, as the process there tends to be much more straightforward than on Alibaba. Depending on the item and seller, you may end up paying considerably more than you would on Alibaba, but you don't have to worry about negotiating back and forth on MOQ, price per unit, and finally shipping costs. Once you're interested in selling greater quantities, you could then renegotiate with your DHgate seller or switch over to Alibaba.

I spent about $500 of my own funds to purchase 2-3 different items. I made back all of the money I spent plus a profit, but ended up having some issues with eBay and trademark claims, which ultimately put an end to the sale of those products. So make sure you thoroughly assess each product you're buying, to avoid running into issues with counterfeit products and trademark claims. I've found finding legitimate products to be the most challenging part.

Good luck!

 

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[steve mclovin]

Hey Ecom man, love this post, I've learned a lot, any chance you could share a link to your website

 

[Ryan D.]

Like the first reply, there is really nothing set in stone in terms of price or MOQ, especially when dealing on Alibaba versus DHgate. Ultimately, they are trying to get the sale, so for the most part they are willing to work with you to make the transaction happen. I ended up using DHgate for my first few orders, as the process there tends to be much more straightforward than on Alibaba. Depending on the item and seller, you may end up paying considerably more than you would on Alibaba, but you don't have to worry about negotiating back and forth on MOQ, price per unit, and finally shipping costs. Once you're interested in selling greater quantities, you could then renegotiate with your DHgate seller or switch over to Alibaba.

I spent about $500 of my own funds to purchase 2-3 different items. I made back all of the money I spent plus a profit, but ended up having some issues with eBay and trademark claims, which ultimately put an end to the sale of those products. So make sure you thoroughly assess each product you're buying, to avoid running into issues with counterfeit products and trademark claims. I've found finding legitimate products to be the most challenging part.

Good luck!

Thank you for the heads up! I actually think I found 2 products that have large margins. The only sellers are from China and have large amounts of steady sales. Value add with shipping, returns, and local should smoke them out of the water. There was a "how to find" products guide that someone shared early on in this thread. That helped a ton. You aren't looking for things like "garden house". But more specific. That's what helped me. At first I was looking for things like "emergency kit" etc.

Also just my observation so far but it almost seems like DHgate is targeting retail buyers. There prices on several items are like 1$ less than fair market value.

I have emailed 5 suppliers. This really is kind of fun!