How To Avoid The Wholesale List Scam!
If you are an Ebay Auction seller, an e-commerce owner, or are involved in any aspect of product marketing, then one of the research tools you might have used to locate business to business suppliers is to purchase a wholesale list.
Over the years I have purchased more than my share of wholesale lists and found that most, if not all, provided only a modicum of solid wholesale supply sources. Most of the information was recycled companies that were well known to most who have traveled the Ebay auction circuit, and products that had lost their profitability in the general marketplace.
With so many people selling the same products from the same company, saturation was inevitable, diminishing the profit margin for those marketing their merchandise. Another problem with some wholesale lists is not just quality, but the way in which they are advertised. I don’t have anything against a good marketing campaign, but most purveyors of wholesale lists make some unrealistic promises in their sales pitch.
Some, will give you the impression that they have a “secret cache” of wholesale resources that can provide you with direct access to any product that enjoys popular retail status at below wholesale prices.
However, reality always gets in the way of our ideals. The wholesale procurement of some popular retail items can require more than just applying for a reseller certificate, and can be cost prohibitive for those businesses who have limited start-up capital.
You will never find high end handbags like Hermes on the wholesale market, because they do not sell them wholesale. Most Hermes designer handbags are handmade. It is also possible to find the original overseas manufacturers for some brand name items. But, ninety percent of Asian suppliers that claim to have access to authentic products are most likely producing counterfeit merchandise.
If you did find the original overseas manufacturer for a popular clothing or electronic product, importing those items (and circumventing the companies channels of wholesale distribution) could provide you with a set of legal problems you might not be prepared for.
Put yourself in the companies shoes, literally! If you were producing a product like Nike, would you want resellers going directly to your manufacturer?
The answer to that would most definitely be no. You would probably bring legal action against the people doing the importing, as well as the company who is slipping the product out the back door.
The following are some warning signs and red flags you need to consider before you buy a wholesale list, join a wholesale database, or drop-shipping service..
1) They claim that their list contains direct wholesale sources for current, in demand, retail products like Nike Air Jordan sneakers, designer jeans like True Religion, Chip & Pepper, or Louis Vuitton handbags.
2) Their list has wholesale sources that are selling popular brand name designer merchandise at 90% off the retail price, or any designer product for 80% below wholesale.
3) A wholesale list that can provide you with access to thousands of brand name items including the latest version of Sony Play Station, or any in demand electronic item.
Remember, you have to realistic when you are pursuing wholesale for resale products. Most wholesale lists will fall terribly short of what they promise, and most popular retail products will not be within your reach if you have limited financial resources.
Just subscribe to the old saying, “If it sounds too good to be true, then it usually is”. The above mentioned resources should help you find realistic wholesale supply, and help you avoid the wholesale list scam!
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