posted on March 21, 2001 07:38:26 PM
I have a retail outlet. I was thinking of selling digital cameras and camcorders on eBay. I've been following these auctions for several weeks. Items that are supposedly new consistently sell for less than my wholesale cost. How do these sellers do it? The sellers often are selling a lot of different items so I assume they are making a profit.
posted on March 21, 2001 07:59:46 PM
It's a hard way to go, to sell new items at auction, in my opinion. You know they want it at bargain prices--wholesale or below if they can get it.
It would be better to find a market for quality used items. There's a strong market for used, but I'm not familiar with your electronics type items--what they go for that is.
I don't know how they do it--unless they buy in such large quantities that they get a really large discount.
[ edited by loosecannon on Mar 21, 2001 08:04 PM ]
posted on March 21, 2001 08:23:09 PM
I have a wholesale account with TechData (computer software and peripherals) and discovered a long time ago that I could not buy in any quanity at a price that would be competitive for eBay.
I've never bought any computer parts or electronics on eBay, but my brother bought a digital camera (his first bid ever) and he was very disappointed - not what he expected.
So I came to assume that there must be *fine print* for all the electronics on eBay, whether published or not - either used, refurbished, or low demand. I sincerely believe that you get what you pay for, and I have no interest in trying to compete with the scammers or naive sellers who come and go.
Like loosecannon, I look for quality vintage items, collectibles, momentos. My first love anyway. Much more enjoyable way to go, and what the auction format was really meant for.
posted on March 21, 2001 08:31:38 PM
If you check out the auctions for electronics and computer items, you'll usually find that the seller is making a hefty profit from the shipping and handling charges.
posted on March 21, 2001 08:34:12 PMSo I came to assume that there must be *fine print* for all the electronics on eBay, whether published or not - either used, refurbished, or low demand.
There's not always a catch- sometimes it is a deal. The stores around here occasionally have components for sale that end up being free after a mail in rebate. When they run these sales, I pick up what I can and list it. Everything I sell (modems, cd drives, sound cards, software, etc.) is brand new, in the manufacturers original packaging. The only difference from what you would find on the shelf at your local store is that the UPC code has been removed.
posted on March 21, 2001 08:55:04 PMTechData (computer software and peripherals) and discovered a long time ago that I could not buy in any quanity at a price that would be competitive for eBay.
Indeed, TechData, Merisel, Ingram Micro, et al sell at prices which are nearly always above competitive local retail. Despite their carefully marketed image, they are mail order retailers, not wholesalers...and not particularly competitive retailers at that.
posted on March 21, 2001 09:02:55 PM
Recently my wife and I bought a camera off of ebaY.It was described as new or reconditioned,the sellers feedback was not the greatest.
But it was going for below half retail and it was a 280.00 camera.Well we got and it was exactly as described in fact we could find nothing to suggest that it was a return or refurbished as it appeared to be in the origional sealed package, and my wife enjoys using it.
So there are really good buys out there but I wonder at times where they do get there items from.
posted on March 21, 2001 09:14:02 PM
I agree with prior posters that TechData is not really a wholesaler, just a distributor and unless you are buying by the multi-truckloads you will not get a price such that you can resell it on eBay.
It is possible to buy electronics by the pallet (store returns and mfr overstocks) for pennies on the dollar, and make a killing reselling it on eBay. The only deal is you have to find a reputable surplus dealer who sells good pallets and that can be very hard. Also, you have to have enough capital to tie up in inventory and also a large place to put it all.
I haven't been brave enough to try it, personally.
posted on March 21, 2001 09:32:50 PM
Funny, but I have noticed that prices for electronics on eBay are way higher than retail.
Occasionally you may find a bargain for an obscure used item, but more often even used items from questionable selers go for 10% - 50% higher than I can buy it retail.
For instance; Last month I was in the market for a GPS; after two weeks shopping eBay the cheapest price on the one I wanted was $185.00 on ebay. I bought it at WalMart for $119.
I have found similar comparisons for a very wide variety of electronics.
posted on March 22, 2001 01:29:50 AM
It depends on where you look. I find many electronics going for what appears below retail. Perhaps these sellers make a profit because of lower over head.
I have also heard of pawn shops that have turned to ebay to sell items that weren't claimed. This could explain how it could be sold for well under retail.
Another possibility, and one I don't like to think about, is that the item(s) may be stolen. Ebay's policy of "let the buyer beware," is an open invite to crooks who want to sell stolen merchandise. It's easier than fensing the items, and depending on what it is, would be difficult to trace down.
Many times stolen property is recovered when it is sold in the same state that it was stolen from. But if a buyer on ebay buys a laptop from Colorado and they live in Florida, it may be harder to discover the theft.
Remember that there is no such thing as a free lunch.
posted on March 22, 2001 05:28:15 AM
Here in Silicon Valley, there are LOTS of dot-coms going belly-up and you can get GREAT deals on nearly new items such as laptop and desk top computers, computer parts, desks, chairs, filing cabinets, even phones! I started out selling collectible items in 1999 and when the dot-coms started to fail, switched to computers/parts. I stay away from companies that want me to buy "the whole lot", I don't want 200 monitors...
Dubyasdaman...not all sellers make a huge profit from shipping. The last two laptops I sold, I paid more than the $37 I charged for shipping/insurance and will just eat the extra cost. I never charge a handling fee, and for everything thing I sell but laptops, I will ship Internationally at cost.
posted on March 22, 2001 05:34:25 AM
I bought my Mavica off ebay. It was new, still sealed & went for a whole lot less than even the Sony outlet stores wanted for a refurbished one of the same model.
And the shipping was dead on to the cost to ship it.
When I was researching the camera, I looked at a lot of sellers & noticed the price to ship ranged from what this seller wanted (which turned out to be exact priority cost plus insurance) to THREE TIMES what this seller charged.
So do your homework & look at more than just one seller & PAY ATTENTION to their feedback.
That's good to know. I'll look for your auctions when I need to buy again (soon).
was talking about the sellers who sell an SDRAM memory module and charge $12 shipping and then send it to you by priority mail. Or the ones that sell you a CPU and charge $13.50 and send it by priority mail.
I DON'T think this is dishonest as long as the shipping charges are stated in advance in the auction listing. But it DOES help explain how many sellers make a profit with low winning bid amounts.
posted on March 22, 2001 05:37:16 AM
Ditto re: computer items selling for more than expected. I have been looking at laptops. I get a Dell catalog every few weeks. Some idiots are paying MORE for Dell laptops than the same model is listed for in the catalog.
posted on March 22, 2001 06:04:34 AM
Read a seller's feedback carefully. I had trouble with one who redefined dishonest and sold me a broken "new" item and would not guarantee it other than have me eating two shipping charges--delivery and return.
Make sure you get that covered if that's the case.
posted on March 22, 2001 06:04:54 AM
My husband bought our slightly used Olympus on ebay with all the accessories. At that time Costco/Price Club had the price at $500, our final bid plus s/h/i was $300.
The camera is one of the best purchases we ever bought. Works great for him and now I use it - and we have had it for over a year.
We had a gut feeling that the seller was legit - he had fine feedback - not high - but no negs and it worked out nicely.
You do take a gamble - so be careful and if you take the gamble make sure it is money that you can afford to lose if it turns out bad and you cannot re-coup the funds.
posted on March 22, 2001 06:30:00 AM
As someone who sells digital cameras, though not on ebay because there is no way to make a profit, I have discovered the following:
- there are sellers listing "new" items that in the small print say "newly refurbished." Warranty (if any) will be 3 months, not one year as some of these sellers shamelessly post.
- some of the "new" items are open box. A customer bought it and then returned it. There is nothing wrong with many of these items but they are not brand new. If the registration card has already been sent in, you will have no warranty service.
- there are sellers offering items that are actually gray market (manufactured for a foreign market) or stolen. Again, if you ever need a warranty repair, you won't get it.
- there are scam sellers who take the check or MO and never ship. I have caught a few myself and prevented them from ripping off unsuspecting victims.
-there are folks selling their own used items. As long as you know it's used and it works, you can get a good deal, but it's a gamble.
- there are liquidators who buy out overstock or the inventory of failing businesses. You can find a good deal but if there is a problem, you will have to contact the manufacturer, not the seller.
Because I can't compete in this market, I won't attempt to sell these on ebay. But I have bought there and have gotten good deals. You just have to be very careful.
posted on March 22, 2001 12:34:31 PM
I can find virtually nothing to buy in my major categories, photo & electronics. Uninformed people push the prices way beyond retail. To the people here that say they bought something for $100 because the local Doggie Mart had it for $200, TRUST ME the rest of the world had it for $95. I am constantly dumbfounded by what people pay. If they can get to eBay can't they get to Buy.com or MySimon??
The other day I bought a new Replay TV 3060 for $499 w. free shipping on Buy.com. Bids on eBay for new ones were $625.00.
I can't figure out the complaints about poor sales from the big sellers that post on here.
If I choose to buy in these categories, I'll have to pay more than retail, many times get a lecture about how evil Paypal is, and in 2 weeks get my widget after running around for a money order etc. WOW, how can you top that!
EVERYTHING I buy I buy online. Based on price vs reputation, I place an order. I have it delivered to where I work in 1-2 days for no or downright cheap shipping, plus the protection of a credit card purchase. I've ordered, received a damaged printer, and gotten a replacement in a total of 3 days. All w/o add'l shipping charges, insurance claims, etc.
Other than collectibles and no longer manufactured stuff, I don't know how anyone could be a succesful seller in these categories.
posted on March 22, 2001 12:37:25 PM
I can find virtually nothing to buy in my major categories, photo & electronics. Uninformed people push the prices way beyond retail. To the people here that say they bought something for $100 because the local Doggie Mart had it for $200, TRUST ME the rest of the world had it for $95. I am constantly dumbfounded by what people pay. If they can get to eBay can't they get to Buy.com or MySimon??
The other day I bought a new Replay TV 3060 for $499 w. free shipping on Buy.com. Bids on eBay for new ones were $625.00.
I can't figure out the complaints about poor sales from the big sellers that post on here.
If I choose to buy in these categories, I'll have to pay more than retail, many times get a lecture about how evil Paypal is, and in 2 weeks get my widget after running around for a money order etc. WOW, how can you top that!
EVERYTHING I buy I buy online. Based on price vs reputation, I place an order. I have it delivered to where I work in 1-2 days for no or downright cheap shipping, plus the protection of a credit card purchase. I've ordered, received a damaged printer, and gotten a replacement in a total of 3 days. All w/o add'l shipping charges, insurance claims, etc.
Other than collectibles and no longer manufactured stuff, I don't know how anyone could be a succesful seller in these categories.
posted on March 22, 2001 12:57:47 PM
I shy away from retail electronics on ebay because of all the zero feedback bidders.
I know they are all not bad. But you really can't tell who is shilling, or who is just an enthusiastic amateur who bids up a high proxy only to have some other new guy bid it up to the max in a misguided effort to win.
Some of these guys seem never to have heard of Cnet.com.
Also, the refurbs aren't always listed as such.
I was just going through my feedback and found a seller who I bought from before, browsed through his auctions. He had a newbie win a lens that is identical as the one I bought on ebay for sub $50. She paid over $120!!!!!!
Damn!
posted on March 22, 2001 01:51:12 PM
When it comes to computers or parts, I would just as soon go to stapels or dell. At least I know who I am dealing with. As how can they sell so cheap? A big truck at night with the motor running and some guys in trench coats. Yisgood made some great points.
posted on March 22, 2001 04:47:28 PMThe other day I bought a new Replay TV 3060 for $499 w. free shipping on Buy.com. Bids on eBay for new ones were $625.00.
If this is true, you have just found a way to make some great profits on ebaY!
posted on March 22, 2001 09:59:20 PM
There is a dangerous tone in these posts.
That tone that I am picking up is that the vast majority of sellers that sell consumer electronics or computer equipment are theives, cheats, and scammers. That is not the case.
The company that I work for has a very successful online selling division, selling most of the items over eBay and other auction services.
From reading most of the posts, the vast majority of you are clueless where product comes from.
Here are just a few sources of where sellers can get their product for cheaper than wholesale.
1) Liquidations from defunct retail stores and emploded dot coms. (A lot of boxed new product comes from here)
2) Corporate surplus, when computer gear is deemed obsolete by corps, either pulled from the field or off a tech's shelf for replacement.
3) Private citizens wanting to trade in their used gear for better stuff.
4) Repo equipment that is then liquidated.
5) Returns & RMA's from consumer locations that end up still working just fine.
One more thing that I noticed in the posts. Grey market is an aftermarket. Meaning that say Gateway buys 1,000 more PIII chips form intel than it needs thereby needing to get rid of them, Gateway will take those chips and sell them to other dealers. That is a grey market transaction.
Black Market is generally reserved for contraband and stolen merchandise.
Yisgood made some great points.