In other words, you won’t be making any money and at best you’ll find that you’ll be lucky just to break even!

This is a common email I get from people that are looking into buying wholesale.  One of my readers said this…

“I know that the market gets saturated.  But not to many people were selling these.  What I would like to know is, does your information steer me in the right direction to buy products that will sell for a profit, or is it just another list that shows products that I can buy that sells for the same price that eBayers are buying it for?  I am getting very frustrated at this point to find a true person to get this info off of and I would like to hear more from you personally.”

Now, if you’re from another country, one of our former American President’s said; “I feel your pain” ; )

Seriously though, I’ve had numerous correspondences with people just like you dealing with frustrations in product sourcing.  I totally understand as I’ve been there.  I had the same problem when I first started out.  I scoured the internet and called all over the country looking for legitimate wholesale suppliers to supply products so I could resell on eBay.  Unfortunately, every time I thought I found something great, it was going to be too difficult just to make my money back if I sold on eBay because there were already too many of them being sold for far less than what I could get them for.

Not good for the pocketbook right?

This is my response to these e-mails: Don’t give up – you can still make money on the back end even if your initial sale is not profitable!

Many people think they have to make a profit on the initial sale of a listing on eBay.  That would be nice, but I can tell you about a guy who listed his PS3 on eBay for $1.00 and made enough money on that one auction that he was able to donate $1000.00 to the Salvation Army!

This guy had it figured out.  I would strongly urge you to pay special attention to what’s going on here because this will give you some great insight to how to get around these frustrations and problems of not being able to compete or make a profit on your eBay listing because they are already being sold for less than what you can get a product for.

First, here’s my response to the reader’s email:

“Unfortunately, there a couple of things that lead to frustrations with “these lists”.

What many “wholesale lists” are is just a collection of someone doing a Google search and typing in url’s, calling it a product and selling it.  These are more likely a bunch of middlemen who are robbing you of profits because they are hiking up the cost of the goods.  Not good for you.

Or…

the situation is that even though these might really be legitimate wholesale liquidators, most people do not understand the fact that there is quite a difference between wholesale, liquidation and surplus merchandise.  This is a common misunderstanding, but it is very important point to learn the difference if you plan to be successful in the game.

If you’re finding products at wholesale, most people on eBay are not selling wholesale merchandise, they are selling liquidated or surplus merchandise.  There is a large difference between these categories and it is very important to understand what theses differences are.

Even if eBay sellers do sell wholesale products they often don’t make much of a profit because they have to compete with similar offers selling for less.  They are often competing with people selling below wholesale cost.  They can sell them this way because they’re not wholesale products!  They are usually from a totally different product category which is purchased at below wholesale costs!”

Alot of people have ended up being burnt in the process because they did not know this type of critical information.  I have personally used inside industry information and resources to sell full time on eBay, and it is profitable IF you learn how to do it the right way.  Without knowing this important information, you will probably end up learning these lessons the hard way: and that will usually cost you time and a lot of money that you don’t want to lose!

I know frustration can lead to disappointment, but don’t give up.  Trust me, it can be done!