Introduction to Buying Wholesale – A Free Source to Get You Started!

6

WarehouseThe idea of finding the “right niche”, beginning a relationship with a wholesaler, and buying in moderate to large quantities can be daunting and can even induce fear and panic!  The great news is, it doesn’t have to be this way!  In my 6 step business strategy (which I provide an overview of in my free ebook available on this site), I recommend starting small and growing from there.  In my opinion, buying wholesale in large quantity is not the place to start until you get your feet wet.  If you’re nearing step 3 (working with wholesale suppliers) of my strategy, then I’ve got a great “introduction method” that will get your feet wet while significantly lowering your risk and will ease you into wholesale buying!

As you know, I highly recommend Worldwide Brands for connecting with real wholesalers (and even drop shippers if that is your business model), but as I mentioned above, initiating a long term relationship with wholesalers can be intimidating when starting out.  Today I want to introduce you to Ebay Wholesale Deals!  I was invited to this site years ago and have found numerous profitable items since!  The site used to be open by invitation only, but now it is open to all retailers (online or offline) so long as your present your resale certificate/EIN certificate.  If you don’t have one simply Google “resale license” followed by your state name to find information on how to obtain one in your state.  EINs are issued by the IRS.  I would recommend applying for an EIN first HERE then using that number to apply for a resale certificate (if needed- every state is different.)  Once you have this, go ahead and sign up!  You will likely need to preset Ebay with a scanned copy of your certificate/license.  As a side note, the resale certificate will help tremendously with your arbitrage endeavors as well since it makes it possible to buy retail items tax free!
Ebay Wholesale Deals opens up their platform to wholesalers, retailers and distributors who are looking to sell off excess goods, overstock, liquidations and wholesale products and opens up the buying side to online and offline retailers.  This is great for you, the online seller since most items are sold in a reasonable quantity and there is really no need to “pick a niche” at this point.  It’s a fantastic way to try out a variety of niches and test the market to find the “good niches” and the “bad niches” (or the ones that work for your business!) Furthermore, you are not locked into a long term relationship with the wholesaler/Ebay seller.  This is really the perfect bridge between arbitrage and wholesale!

The video below shows a couple of deals I came across just browsing the first couple of pages!  There are countless items available and I’ve successfully found numerous items on this site sometimes at extremely high profit margins!  For these, you’ll need to be quick!  After signing up, you’ll receive regular emails when inventory is updated on Ebay Wholesale Deals.  Be sure to look at the new inventory right away!  Several months ago, there was a gaming mouse available with over 100% profit margin (unheard of with wholesale sourcing!)  Unfortunately, by the time I researched it and decided I was going to buy, all the lots were gone!  For these kinds of deals, you’ll need to be fast!  However, in the video below, you’ll see, it’s quite possible to make some quick cash with very little effort on a variety of items!  There are hundreds of items to choose from, so dive in!

As a side note: I’d like to apologize for the constant clearing of my throat in the video (I was getting over a cold).  Also, I apologize for the low quality video.  I’m in the process of transitioning to a better screen capture program.  The video should still serve it’s purpose with the low quality images.

If you’ve not yet signed up and received my business strategy that I’ve used to make a 6 figure a year income, please do so below!  Thanks for your support!

6 thoughts on “Introduction to Buying Wholesale – A Free Source to Get You Started!

  1. Hi Daniel,
    Thank you for your website and all your helpful tips! After making an expensive mistake with my first wholesale order (large qty of inexpensive items that didn’t leave room for FBA profit), I’m having anxiety about taking the step to try again. I’ve invested in the Worldwide Brands directory (thanks so much for the recommendation), but as I’m sure you’ve heard a million times over, I’m having trouble finding profitable items.
    My question is about the steps involved in finding a profitable wholesale product. What I’ve been doing is applying for accounts with lots of wholesalers in niches that I’m interested in that deal with Amazon sellers, then once I get approved, I’ve been using Profit Bandit to go through every item they offer. It’s getting exceedingly tedious to not find anything profitable in my hours and hours of searching. Am I doing something wrong? Is there a better way I should be going about this? I’m terrified that Q4 is going to be upon us and I won’t have found anything to sell!
    Thanks so much for your advice!

    1. Hi Judy,
      Thank you for writing. I’m sorry for your unfortunate initial experience in losing on a wholesale deal, but I hope you were at least able to sell everything off so the loss was minimized!

      Yes, your question is a common one and there is unfortunately no quick and easy answer, but here are a few thoughts:

      1. Remember that a lot of people use worldwide brands. This means there will be a lot of competition among Amazon sellers. Many people are willing to drop their prices to the point where they hardly make anything (also remember that you can negotiate with suppliers which some of these sellers are doing to get an even lower price!)

      2. Instead of looking into niches you are interested in, look into niches that customers are interested in (please refer to my posts regarding product and niche research.) There are niches that are extremely profitable, but that nobody is buying in, then there are niches that have an overwhelming amount of buyers, but are extremely competitive (no profit.) Your job is to find the niches that have enough people buying in, but also have enough margin to support your business. These can be hard to find, but they are out there. It’s like finding a needle in a haystack (extremely tedious like you said) and the haystack is huge, but there are a lot of needles!

      3. Take breaks. Don’t spend hours upon hours of searching. Spend 30 minutes, take a break (30 minutes to a full day) and come back and do it again. This is not a quick process. Once you find a good supplier, you’re likely to find several products that are in demand and profitable. These are the kinds of suppliers you’ll want to work with. Also, make sure to look at as many items as possible from a single supplier even if the first item you see is not profitable. There may be others that are!

      4. The best tip I can give is to find suppliers that nobody else is using. This can be a supplier selling items that are NOT yet on Amazon (where I’ve had my BEST luck!) or suppliers that sell items that are rare, collectible, odd, or only appeal to small pockets of people (but enough people to support the business.) Products like this can be researched through forums, blogs, trend sites (like trendhunter.com or google trends) etc.

      Ultimately, don’t give up, but do realize that it can take weeks or even months to find a decent supplier. Sorry, I know this isn’t probably what you want to hear, but it’s the truth. Ultimately, don’t settle! Don’t buy from a supplier that will ultimately not make you money.

      I hope this helps!

  2. Hey Daniel,

    Thanks for the wholesale info. video.
    Quick and to the point. Helpful showing how you do the search. Plus the resources are really helpful.

  3. Hi Daniel,

    I am filing my resale license and have a couple of questions. Am I setting up an LLC? There are also sections where I can apply for tax withholding number and sales and use tax number. Which section am I applying for or do I just do both?

    1. Hi Carl,
      Great to hear you’re taking action toward becoming a legitimate business! Unfortunately, it’s going to be difficult for me to answer your questions with 100% accuracy because:

      #1. Every state (and country) has slightly different laws and policies regarding taxes, businesses, resale licenses etc
      #2. I’m not an accountant. When I run into these questions, I generally pay someone smarter than myself (my accountant) to help me.

      I can tell you my own experience, but definitely consult with a professional before following my advice. Here is what I (think) I know :)

      First, an LLC is different than a resale license. The resale license allows you to legally buy tax free and resell items. If you want to set up an LLC, you may do so through Legalzoom.com but it is usually not necessary when first starting out. Instead, look into setting up a “DBA” which you may already have if you’re beginning the process of obtaining a resale license. Basically you just need to be registered as a business. a DBA is the cheapest and easiest way (your county clerk’s office will have information for you on this.)

      You will want a sales and use tax number. This is what you will give to every company or store you buy from to purchase tax free. This is very useful. For tax withholdings, I won’t pretend I know much. This is an area I consulted with my accountant on. If you’re just starting out, I don’t think you’ll need to worry about it, but I would definitely get in touch with an accountant within the next month or so to be sure. Better safe than sorry :) Hope this helps!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>