Chinese Wholesalers a Profitable Resource for eBay Sellers

By: John Kovanski

Los Angeles, CA February 9, 2007 - China is quickly becoming a popular source of products for eBay sellers as they struggle to compete online. Wholesale sources in sellers own countries are being abandoned as sellers find that discounts are not large enough to make reselling on eBay profitable. eBay sellers believe Chinese sources offer them much better prices on popular products, giving them a faster route to eBay success.

Popular online wholesale directory SaleHoo has noticed the demand for Chinese wholesales and manufacturers increase over the past year. Representative Chad Thompson says: Many people are frustrated by eBays fee increases and the huge competition on eBay. Chinese wholesalers can offer very cheap prices for items and sellers can start making the profits they need to counteract their costs. SaleHoo says it has been able to find some excellent Chinese wholesalers and manufacturers, which they are included in their members only directory.

Chinas growing economy has been the subject of much discussion recently. At this stage, its burgeoning industry means manufacturing costs are very low. This is good news for eBay sellers who are able to purchase products at a very low price per unit and sell them for a good profit on eBay even after shipping costs are taken into consideration.

SaleHoos wholesale directory has over 30,000 members many of whom sell on eBay. While traditional wholesalers still work for some, staff have noticed that the demand for Chinese wholesalers has surged enormously in the last 12 months. There is also a parallel demand for information on how to deal with Chinese wholesalers and how to organize shipping and so forth, says Thompson, Its a much bigger, scarier game when you are spending thousands of dollars with a foreign company, rather than a few hundred to one not very far away.

But not all eBay sellers are keen on this supply method. Some say they have been put off buying from China after hearing stories of thousands of dollars being lost when an unfortunate buyer purchased off a fraudulent wholesale site. Thompson says that while this does happen, problems like this can easily be avoided if buyers take more care to check up on the background of the site. Unfortunately, many people just see the dollar signs and dont take the time to consider why the prices might be a lot lower than others they have seen so far, he says. Paying by un-secure methods such as Western Union and wire transfer also gets people into trouble as there is no way of getting their money back.

SaleHoo performs background checks on all Chinese wholesale sites in their directory, so members are guaranteed a safe transaction. As for wholesale sites found outside of the directory, SaleHoo recommends performing thorough research before making a purchase. The site advises sellers to contact the supplier by phone and ask for a sample before ordering. SaleHoo members also get the benefit of being able to ask staff and other members about a supplier on the forum, says Thompson. This is invaluable when they come across a new site that looks good, but arent sure of the reputation.

Thompson also suggests doing a general search engine search for the name of the company. If any one has had any problems with the company, you should quickly find out! He says.

SaleHoo believes that Chinese suppliers are definitely the way of the future for eBay sellers and as this method of supply becomes more common, better data will be available on Chinese companies, shipping costs, importing regulations, and so forth. Its always hard work to blaze a new trail, says Thompson, But those who get in now and do their homework properly will benefit the most in the long run.

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