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If you are selling online,here is the down side of our business....you will never be able to compete with Amazon. (Or Kmart, or Target, or any other big outlet) Here is why, They buy directly from the manufacturer in such huge quantities that they are getting the product for a price that you and I (as small business owners) will never realize. That is an unfortunate fact of business.
The other problem is that they often use products like this as what they call a 'loss leader.' They are willing to take a huge loss on the product in the hopes that the customer will buy other things. If you are like me, you cannot afford to do that. So what do we do?
The answer is very simple....if you can't compete with Amazon, don't! You are not the size of Amazon, so don't compete with them. (I know sounds too simple, but stay with me) So, if I can't be the cheapest price, or compete with Amazon, how can I make any money? ( I know, I asked the same thing when I started) The answer is, if you have a great product, you sell it for a reasonable price, and you have a great sales letter....people will buy from you. (I don't have a degree in marketing, so I can't explain why) But they will.
Here's the thing, if every small business in the world tried to compete with Wal-Mart, or Amazon, there would be no small business around. But, there are and they continue to thrive. What you want to do is to not compete with Amazon, but others on eBay, or wherever you are advertising your site, that are selling the same product. Try and see what they are selling it for and stay in that range. And most of all, don't worry about being the lowest priced!
I know that sounds funny but, you would be amazed that if you write a GREAT sales letter...then pricing has very little to do with it. (And that has been proven time and time again) In the members area of Drop Ship Connection there are great resources and software that can help you write a great sales letter.
One mistake, between you and me, that I see people making every day on eBay or on a website is that they are not even bothering to write a sales letter. They list the product specs and throw up a picture and expect it to sell. The mistake they are making is that eBay is not a store that has products on a shelf for everyone to pick out.
With the competition on eBay, and the internet as a whole, it should not be looked at like a store for people to pick and choose, but rather a mail order system on steroids. Think of all of the junk mail that you receive in your mailbox; Most of it (if they are trying to sell you something anyway) is going to be in the form of a sales letter. (The main page of The Drop Ship Connection is an example of a sales letter.) You really have to make people want to buy your product from you with a great sales letter, then price is not an problem.
So why is there not much difference between what Amazon sells it for and the wholesale distributors you list; Are you sure they are real wholesalers? My answer to this question is always...yes all of the wholesalers are verified as true wholesalers or manufacturers. However, you will never get the same price Amazon gets...that's just an unfortunate fact.
You are not buying hundreds of thousands of units shipped on pallets with a HUGE discount because of the size of your order. You are ordering from a wholesaler who maybe got two pallets in, then has to pay people to break them up into single units and repackage them for distribution to your customer (obviously they have a higher overhead, so they are going to pass that on to you). And, if they are the manufacturer, again they have to pay people to ship them out individually in packages vs. a huge pallet. (More work, more money)
About The Author
Tony Keeler is the founder of MAR Services who publish several successful websites:
Drop Ship Connection - The Web's #1 directory of wholesale distributors who drop ship.
$2 Software - All of the marketing and advertising software you've seen out there for $50.00 or more for only $2!
DingleHopper - Funny Name, Cool Products!
Free eBay Resources - Start your auctioning career right, for FREE.
Don Lutes Jr. kept the 1943 copper penny he stumbled upon in his high school cafeteria seven decades ago in a safe behind a wall in his Massachusetts home.
The auction will take place at Christie's Paris, against the backdrop of Paris Couture Week, on Jan. 24.
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Invaluable said it sold half a million lots on its global marketplace in 2018, which is up 20% over the previous year and is up 130% over 5 years. The number of ...
After 40 years of business in Boston's Back Bay, the recently shuttered L'Espalier auctioned off everything Wednesday — from its industrial dishwasher to its ...
Visitors formed long lines before daybreak on Tuesday to catch a glimpse of Tokyo's renowned tuna auctions — now at the Toyosu wholesale fish market — as ...
Those who can't make it to the Naples Winter Wine Festival's live auction Jan. 26 will have a chance to bid on a different set of extravagant lots online starting ...
Stacy Luoma and her grandmother Arbilla Moore made off with about $515 in personal possessions once belonging to "Little House on the Prairie" star Melissa ...
A 30858-square-foot Paradise Valley home that was once listed for $35 million is going up for auction later this month. The Paradise Valley home, called Villa ...
PALM CITY — A 20-acre equestrian estate, part of the Box Ranches development near Indiantown, will be sold at auction Thursday to the highest bidder, ...
A rare penny that a Pittsfield teenager found in his lunch money more than 70 years ago was auctioned off for more than $200,000 on Thursday to a Concord ...
Eddie Lampert's hedge fund has won tentative approval for a $5.2 billion plan to buy 425 stores and the rest of its assets.
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A 1994 Club Car Golf Cart sold for $58,000 at Russo and Steele Collector Automobile Auctions on Thursday, with proceeds benefiting the family of fallen Salt ...
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After a daylong suspension earlier this week due to weather, the FCC's 28 GHz spectrum auction kicked back into gear more than two months after it began.
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Exquisite '20 years of Supreme' ensemble includes an archive of diligently and passionately assembled skates by collector Ryan Fuller.
The Capitals' annual Better Halves gift basket auction to benefit the Monumental Sports and Entertainment Foundation launched Monday and will close at the ...
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Eddie Lampert's bid would keep about 400 Sears stores open and retain about 45000 jobs.
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(WLEX) A small Kentucky town is auctioning off a piece of history. A rare 1921 Thompson “Tommy” machine gun will be sold at auction. For decades, the gun ...
Honor the legacy of Martin Luther King Jr., check out an art and wine festival or see what's going on the block at a high-end car auction.
Baseball legend Randy Johnson's 25000-square-foot Paradise Valley mansion will go to the highest bidder on Jan. 31.
There weren't a lot of reasons to keep holding the Wayne County Tax Foreclosure Auction, and they're dwindling by the day.
The Federal Emergency Management Agency auctioned off 34,496 unused meal kits this week, as their expiration date neared, that had been earmarked for ...
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Two Ferrari supercars will star at the next Mecum Auctions event, taking place at Osceola Heritage Park in Kissimmee, Fla., from January 3 through 13.
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Two dozen horses in poor condition were rescued from a local auction, and almost half had to be put down.
You have the opportunity to get your hands on a piece of White Fence Farm history. The historic restaurant is auctioning items off after closing its doors in ...
Among the items for sale Saturday at a southern Wisconsin auction business is a box of World War II German replica pins featuring swastikas.
Over the past six years, the KCI Auto Auction has donated $1.25 million to three Kansas City-based organizations.
Heavy snowfall in the nation's capital has prompted the FCC to suspend the 28 GHz spectrum auction. The agency plans to resume activities on Jan. 15 with six ...
Kennewick, Wash. - The Old Country Buffet, a local favorite for many years has recently closed. The remaining assets from the Old Country Buffet are being ...
Utah businessman Dell Loy Hansen won the bidding war at Heritage Auctions.
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The house is reported worth $510000, according to Zillow.com.
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Former Arizona Cardinals coach Bruce Arians helped auction a boat at Barrett-Jackson in Scottsdale on Wednesday night, all for a terrific cause.
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President Donald Trump's administration auctioned 150,000 acres of public land off in December 2018, making that land open to fracking activities.
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NEW DELHI: The government has deferred for the second time the deadline for submission of bids in the auction of 25 oil and gas fields that hold resources ...
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