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Using a drop shipper or wholesale drop shipper will not guarantee that you will be getting the same price as Walmart gets their orders. You should not expect that your drop shipper can offer you a price similar with what Sears gets whenever they purchase tons of merchandise.
There are two important things that you have to consider in the drop shipping industry:
• Avoid selling "hot items". As a home based entrepreneur you should avoid selling products that are flooded in the market. Electronics, for example, everyone online is trying to sell electronics. Every seller whether a new comer or an experienced one would want to offer what is new and what is hot? All these people will try to undercut each other that they can pull the "market price" of these items so low as to make it very difficult for small businessman to survive the competition. Sell something in the same product line that your competitors (giant retailers) don't have. In spite of everything they can't carry all item ever made. You should also consider offering specialized products or unusual products that are not common in the market. People will be willing to pay for what they want. Remember, your product should be profitable. It has nothing to do with what you want, it doesn't matter if you don't like the product you are selling as long as people buy it. But of course if what you want is what sells, then that would be great.
• Test viable products. To determine what products to offer, you should test your potential products one at a time. To test your products viability, you have to go beyond what eBay tells you. Indeed, it is where most people check and buy online, but it does not mean that if a certain item does not sell on their site it won't sell to yours. You have to check your products salability farther than eBay. You can also use Google, Yahoo, Froogle and Salehoo. You can use advance search to check how many auctions were closed, at what price, as well as auction details such as sellers who are selling and who are getting the bids.
Just be diligent and patient in researching & selecting your products.
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