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Comparing wholesale prices with eBay

Often people signup with a wholesale supplier only to find out that prices are the same as on eBay.

In this post I will provide simple guidelines on how to compare your wholesale prices with eBay which may help you better understand why price are sometimes lower on eBay.

First and foremost I would like to confirm that the wholesale prices that you see on any website are not always the true wholesale prices. Middlemen will typically apply a markup however some website will truely give you the wholesale prices in which cases most often they will also provide you with the name of the dropship supplier so you can confirm the cost. If you are working with middlemen that integrate products from dropshippers, please make sure you also get the actual names of the dropship suppliers. If they are offering the same prices, then there is no reason to hide this information.

When you compare prices with eBay please make sure that you follow the guidelines below:

a) make sure that you always compare prices with BUY IT NOW auctions only
b) do not compare prices with current auction bids as they may not reflect the reserve prices
c) always add the shipping cost to the BIN price when comparing prices
d) only compare prices with BRAND NEW items.  Many people sell refurbished items on eBay so please be careful when comparing prices.

My last recommendation is keep looking for good products to sell even if you find that some items are selling for the same prices as your wholesale cost on eBay.  This can happen if a supplier decides to liquidate some of their products on eBay of if someone has purchased items in bulk at a lower discount and is reselling them individually on eBay.

Furthermore please note that not everyone will buy the cheapest item on eBay.  Low prices can raise some concerns as to the real condition of the item so very often buyers will not necessarily go for the cheapest offers on eBay so selling sightly higher is not necessarily a problem.

I hope this will help everyone better understand pricing on eBay.  When it comes to dropshipping, the bottom line is that dropshipping is so much embedded in many businesses that it won’t go away anytime.  Even large companies use dropshippers so you can feel confident that your not making any mistakes business wise.

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