Avoid Middlemen at All Costs-Wholesale Smarter With Effective Multi-Profit System - By Heston Hopps

Have you been seeing sellers on eBay, or other auctions, selling the same items you offer, for less than you’re paying for them?

Ever wonder how this is possible? If so, you’d better pay close attention, otherwise you’ll never be able to compete.

I’ll bet my last red cent you want to eliminate the possibility that you’re paying too much for your merchandise, so you can STAY in business.

So, how are you going to weed through thousands of companies to find only the legitimate wholesalers?

As an eBay seller & an online business consultant, I know firsthand the enormous problem online resellers are facing and it can be extremely frustrating when you put alot of time and energy into your auctions, only to end up with very low profit margins!

I did extensive research with a focus group of 10 eBay sellers as we rolled up our sleeves and began an investigation that would make Sherlock Holmes proud.

The results are shocking: We found that a full 93% of the wholesaler & dropshippers listings on the major search engines are middle-men! The possibility that you’re doing business with one or more of them is virtually certain. The Biggest Problem You’re Facing Right Now.. Over 3 million business owners like you are buying from middle-men wholesalers & dropshippers this very minute.

Fact is, the real wholesale distributors & dropshippers do not advertise widely online and their web sites aren’t positioned anywhere near the top of the search engine listings.The middle-men do a much better job at getting listed on sites like Google, Yahoo, MSN, Ask Jeeves, Altavista and others.How is this possible?

These fakers know how the search engines work, and often, they pay money to get listed at or near the top of your search results.The middle-men study which words you use when you perform a search for dropshippers or wholesalers, and they optimize their sites to be listed FIRST, before the real wholesalers. Let’s face it, it’s in their best interest to do so.

Then, they take advantage of this & claim to be dropshippers themselves because they know you probably won’t be able to find the sources they use.

They are small companies with operators that act like llusionists…Many of them are very successful with manipulating online resellers into thinking that they are a legitimate “wholesale company” with an extensive warehouse network scattered across the country. One of these “clubs” that I’ve seen charges $50 per month for a storefront & they STILL don’t give you access to the best pricing available. They have the nerve to claim that they don’t make any money on the merchandise! (I even emailed them to ask how they could make such a claim…they didn’t respond).

Along Came A Service Called Drop Shipping……The Evil Exposed

This form of selling has caused more aggrevation for more people than any other form of selling.

This program is a complete waste of time for anyone trying to make a quick buck. One of the main problems with this type of selling is that there are too many people selling the same product to the same potential audience.

Can you make any money with this form of selling?

Yes, however your profit margins are so low per unit after paying your auction seller fees and drop shipper fees, that the effort to list does not justify the limited revenue coming out the other end. There are many people selling dropshipped goods on eBay right now that are locked in stiff competition with hundreds of other sellers, selling the same exact product on eBay and independent websites. The only winners here are the “drop shipping” companies themselves.The truth is, there are too many fake companies pretending to be true wholesalers on the internet. They set up web sites with the same product as the actual true wholesalers and then markup the wholesale price and sell directly to you or drop ship the product(s) to your customers at an inflated price. They are the Middleman in the way of you getting the proper wholesale price! These shady characters can be running a large scale business out of a one bedroom apartment and you would not even know it when you look at their fancy web sites. All they are doing is redirecting product without even touching it!

This is a major problem in the online wholesale business that is not going to go away quickly. Even if you are buying merchandise through bulk wholesale channels, these Middlemen will drop ship marked up product purchased from a true wholesaler to you even by the truckload!

The Only Way to Make Money In Wholesale

In order to make money in the wholesale business you have to buy in bulk direct from the source where there is no middleman to be found. You also have to buy from true wholesalers that own all their merchandise and are not brokering goods for another wholesaler. These true wholesale companies actually have contracts in place with the major department stores and retailers to move their overstocked or distressed merchandise. These legit wholesalers do not make much money by selling you 1 or 2 pallets of merchandise. (This is exactly the kind of wholesaler you want) They only make money by getting repeat orders from you of bulk overstocked merchandise. These companies realize that they must get your repeat business in order for them to grow their own business. When you’ve been buying from true wholesalers for at least a year, you start to realize what the approximate wholesale price of a pallet of product should be within a particular category. If they overpriced their wholesale merchandise, they would soon be out of business fast because their regular buyers would go to find product elsewhere. These dealers know what a pallet of DVD players; housewares; sports apparel, etc, should be approximately and these true wholesale companies do not want to loose their primary business core which are these regular dealers. These Discount Wholesalers do all the work for you scouring the country for these overstocks and have large contracts in place with many of the major department stores like Target, JC Penney, Wal-Mart, etc. They also have agreements in place with national drug store and major grocery store chains PLUS they are constantly on the lookout for corporate bankruptcies & receiverships.

Heston Hopps writes about and reviews home based business opportunities for today’s progressive netpreneurs. He is the author of the popular “Rethink Vendor Programs For Perpetual eBay Profits”-A unique multi-profit system for sourcing niche merchandise which online vendors use in tandem with their online auctions and stores. As the internet is constantly evolving, he strives to provide the most current and practical emarketing advise for creative online professionals. He created the Rethink Vendor Program so that online vendors could be free from the "chains" of wholesalers that tie so many home business owners down. This program shows the online vendor how to be independent in gaining access to top quality merchandise for just pennies on the dollar without relying on conventional wholesaling sources. You can check out his popular Rethink Vendor Program here: http://www.rethinkvendor.com

Additional tips & tricks for progressive online vendors can be found here: http://www.rethinkvendor.com/blog