Where Do I Find the Most Profitable eBay Products? - Part 2

By Steve Myers, Online Marketing Consultant

Make More When You Cut Out the Middle Man!

There's plenty of drop-shippers for eBay sellers out there. In Part 1 of this article, we discovered a few of the best.

But they charge a subscription fee and/or increase the cost of the products to make money. How do you cut out the middle man to pay the least amount possible for profitable products to sell on eBay?

If you're willing to do a little leg work, you can dramatically increase the profits you make. You'll learn which two sources of in-demand products even many Power Sellers don't think of. Read on and you'll learn how.

Go Right to the Source

For the lowest prices on products to sell on eBay, it's often best to go right to the source, the product manufacturer itself. So where will you find how to contact the make of products?

As obvious as it might sound, visit a local retailer which sells the product you're interested in. Take a pencil and paper. On the side of the product packaging, you'll often see an address for the manufacturer or distribution center. Inquire by phone or mail.

If you don't know who sells your product locally, where else can you find the manufacturer?

Head to the library. Tell the librarian you want to look up products by manufacturer. You'll find two or three sets of reference books that'll give you all the help you need.

You can also do a quick search on Google.com to find this information. Any company of any size is going to have a Web site. Look for an "About Us" or similar link on their home page. They're very happy to sell more products. They'll be happy to help you.

There's one downside. Working directly with the manufacturer or distributor, sometimes you have to buy more than one or two at a time. Also, make sure who pays postage. Take that expense into account when determining how profitable working directly with the manufacturer will be for you. But it's probably still a lot cheaper than getting the item from a drop-shipper.

The Product Source Close to You

Most every retail store shares a common problem. They have some items which don't sell. I'll bet you've set foot in a retail store and found an incredible price on a clearance item. Why did they cut the price so much? It didn't sell.

Often retailers will actually sell items on clearance at a loss. In other words, they sell it for less than they paid themselves.

What's more, many stores simply don't want to clear these items out. For example, when a shoe store sells you a pair of Nike's at deep discount, what does that do to their profit? Sure, they reduced their inventory, but at what price?

Retail Economy 101

Most likely, buying the inexpensive pair of Nike's meant you DIDN'T buy a more expensive pair. If you came in to buy shoes, you probably expected to pay full price. Let's say the retail store marks their inventory up 150%. A $125 pair of Nike shoes cost them $50. They make $75 profit.

Let's say the retail store decides to unload the shoes at a loss. They sell you the shoes for $40 and take a $10 loss (since they paid $50 for them).

If they hadn't offered the deep discount, you may have bought the $150 pair of shoes next to the discounted ones. They would have made $75 if you hadn't bought the discounted pair. Did they win?

In this example, the store would have been better off pouring gasoline over and burning the pair of shoes you bought, rather than offering them at discount. Why?

If they had thrown out the pair of shoes that wouldn't sell, they lost the $50 they paid for the shoes. However, they would have sold you the $150 shoes for $75 in profit. They still would have made $25 by throwing out the shoes.

By selling the shoes at discount, they recovered $40 of the $50 they paid for the shoes. But in doing so, they walked away from $75 in profit!

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