If you’re thinking of making some money buying products and selling them on at a profit, you might believe that eBay is your best bet. After all; there are thousands of traders on there that do just that.
The thing about that online auction site is that it can sometimes be hard to achieve such a goal. That’s usually because there are plenty of other people doing the same thing as you! Also, it can take a while before you become a top rated seller on the site. Until that happens, your auction listings will seldom get seen by people.
Another approach to buying and selling online is to forget eBay altogether. There is an up and coming way to make money online, and competition is on a more level ground. So, what’s the secret? Keep reading and I’ll show you how to make big money selling stuff online!
Find Stock on Alibaba
In case you weren’t aware of the fact, Alibaba is an online marketplace similar to eBay. The only difference is that there are no auctions. Instead, you see things advertised for sale at fixed prices.
The purpose of the site is to put manufacturers in touch with small traders that want to buy stock and sell it on for a profit. Based in the Far East, Alibaba is a big goldmine that few people have discovered.
One thing I love about Alibaba is that you can negotiate prices with sellers based on volume. That’s not something you can do on eBay; at least, not easily.
Your first step to realizing your profit goals is to find some suitable products to buy on Alibaba. Here are some tips to help you choose the ones that will sell the most:
- Avoid precision tools. They might not always be of the best quality, and cost a lot to buy on the wholesale market;
- Choose small products. Items that can fit into small boxes and are cheap to ship are ideal; and
- Look for best-sellers. Entrepreneurs like Issa Asad suggest tools like Terapeak to find out what sells like hotcakes on Amazon and eBay as a guide.
Negotiate with Sellers
The next step is to find out if you can buy the products you want at a cheaper price. While there are posted prices on each classifieds item, you can usually haggle and get them for less.
Sellers from the Far East are more likely to offer a discount if you can agree to buy stock on a regular basis.
Determine Shipping and Customs Costs
Two costs that will eat into your profit are shipping and customs fees. If you’re considering getting a lot of goods, sea freight is significantly cheaper than air freight. But, the only downside is that you have to wait a while!
Customs duties and taxes will depend on what goods you are importing. Duties are usually only charged on a few items, like alcohol and tobacco products. In some countries, like those in the EU, the only tax you pay will be VAT (value-added tax).
Set up an e-commerce Site
The final step is to set up a website where you can sell your goods. Make sure that you use a good platform like OpenCart, and that you make the site secure by installing an SSL certificate.
That way, your customers can buy from you with confidence. Finally, don’t forget to offer card payment facilities. Not everyone wants to pay with PayPal!