Part 10: Web Sites Vs. Auctions
In the course of marketing our Drop Ship Source Directory, I get a lot of email from people who wonder if it’s possible to use drop shippers to sell products via Internet Auctions.
Sure it is! Real drop ship wholesalers don’t really care where you make your sale; they just want to know who to send the product to!
Internet auctions, in case you don’t know, are another way to sell on the Internet. In fact, it’s a way to sell on the Internet without even building a web site. EBay is probably the best example of this, but they’re certainly not the only Online auction house.
You go to EBay’s web site, sign up for free, and you can list items you want to sell for competitive prices. As I said, drop ship distributors only need to know where to send the wholesale products you sell; it doesn’t matter how you sell them.
I’m not much into online auctions myself, so I won’t try to go into a great amount of detail. There’s plenty of information on EBay and other auction sites that will tell you how they work.
I will tell you, though, that there are auction management services that will make your life a lot easier by giving you an online "management" area for a low monthly fee. There are also some great auction resources out there that we recommend.
We'll get into all the different services, from Hosting to Auction to Merchant Accounts, that I have checked out and recommend, a little later.
People ask me in these emails whether I think they should build an Internet Store, or run Internet Auctions. I lean more toward an Internet Store, but that’s just me. There are a lot of people out there making very good money at auctions. You can do either one, or both. The choice is yours, and there really isn’t any “either-or” to it. For less than $100 a month, you can have the best of both worlds…putting products out in front of millions of potential buyers in both a storefront AND an auction management area.
The one thing to watch out for on the auction sites is that there are a LOT of people who buy "closeout and liquidation" goods in bulk, then sell them at auction. Closeout and Liquidation items are what you get when a distributor cleans out it's basement. Last year's models, returned products from stores, dinged and dented merchandise, refurbished goods, etc. There are auctioneers out there who sell this stuff WITHOUT telling people that it's Closeout merchandise. They sell it at very low prices, because they got it for pennies on the dollar. These people create the illusion that they are selling NEW, factory-warranted goods at incredibly low prices. Then along you come, wondering why you can't get wholesale prices low enough to beat them on the NEW merchandise that YOU are selling.
It's apples and oranges, folks. You're selling new products, they're selling the stuff leftover from the distributor's dustbin and TELLING people it's new. Or at least, NOT telling people that it's NOT new! When you're out there looking at your competition, don't let them fool you into thinking they're selling NEW products at incredible prices!
On to part 11: Your Business: Get Legal, or Get Cheated!