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How To Compete With Amazon.com
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.
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President Obama's high school basketball jersey sold for $120,000 this weekend in online auction - CNBC
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Germany Regrets Size of Bond That Pays Nothing as Auction Flops Bloomberg
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A New Definition of Buyer Beware
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How Do You Find A Reliable Dropshipping Source?
A Dropshipper is someone who will anonymously send the goods you order to your customer! There are no markings on the box and no invoices enclosed! Finding a reliable dropshipper can prove to be a strenuous task. When selecting a Dropshipper you want to be sure to find someone that has a large inventory and quickly replenishes items that become sold out!You also want to find someone that is helpful and knowledgeable about the products they are selling! Make sure to contact them before you consider reselling their items, see how quickly you get a response and how helpful the response is! Remember this is the same service you can expect once you are in business with them! If it is less than your standards consider using someone else!How do you find a Dropshipper? There are several ways to find a Dropshipper perhaps the easiest is to purchase a list from an online auction! Thoroughly read the context of the ad and ask questions if need be.
The Effects of eBay on American Merchandising
With one brilliantly simple idea, eBay was born just a few short years ago.From its humble beginnings in the Collectibles business, it went on to achieve the lofty heights it enjoys today.
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Profitable Paper Piecing on eBay -- Part 2
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Your Auction Headline Or Title - The Most Important Part Of Your Auction
The words you select to describe your item will have a tremendous impact on the final price it receives or if it receives any bids at all. This is because no matter how great the item is you have up at auction, if you use words that don't lead prospective buyers to it, no one will ever see it.
Drop Shipping Secrets and Sources Revealed
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City Police Auctions of Personal Property and Autos
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How to Market with Niche Auction Sites
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Traditional Marketing Techniques for eBay Auction Ads
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Profitable Paper Piecing on eBay--Part 1
Why sell paper piecings on eBay?eBay is a great way to make a steady part-time or full-time income from a hobby that you love! Selling paper piecings has its ups and downs, but overall it is a rewarding and lucrative venture.Getting and Understanding An eBay AccountTo get started selling paper piecings on eBay, you will need to set up an account.
Is Your Trash Cash? 5 Easy Places to Sell Your Stuff
The old adage that says "one person's trash is another person's treasure" never goes out of date. So when you're looking for some extra spending cash and you want to make some space in your home, combine the two endeavors by selling your stuff instead of donating it or trashing it.
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If you have not heard of Foamtemplates.com yet, home of the "Free Online Auction Maker", now is a good time to get your feet wet.
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Artists, craftspeople and photographers are successfully selling their wares everyday on the online auction site, eBay. According to a recent analysis of eBay sales, a crafts-related item is sold every nine seconds, a scrapbook item is sold every minute, and 40 cross-stitch items sell in an hour on eBay.
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