Global Sources Direct, a new company that sells wholesale products from China online to small- and medium-sized businesses, just added two new categories in response to eBay Live! conference feedback.
"The Folks at eBay tell us that one of the top issues, if not the number one issue, that Power Sellers have is finding new sources of product," said Peter Zapf, Global Sources vice president of community development. "And we heard that at eBay Live, so we've added 'Hardware and DIY' and 'Power Tools and Accessories' to the line up."
Global Sources Direct, launched a year ago, allows buyers to order direct from China in quantities as small as a single shipping carton, at the wholesale factory prices that manufacturers usually offer only to large importers.
Zapf says the site is designed for those who have limited experience in the export/import market because it handles all the complex logistics of payment, quality control and customer service. In addition, customers can see product specifications, types of product packaging and "standards certifications" before placing an order.
Big sellers, he says, include iPod accessories and key-chain alcohol breathalyzers, though the site offers merchandise in categories that range from audio, car and videogame accessories to clothing, health and beauty products.
Expert Advice
Power Seller and author of several eBay how-to books, most recently How to Create and Sell Information Products on eBay, Skip McGrath has used Global Direct and says it is a great resource for small Web stores, but offers this advice:
"They have a lot of interesting products but they're not name brands, so sellers need to educate the buyers and convince them that they're getting quality stuff. Often, the items are coming from the same factory that makes the brand name, I bought ink cartridges from the same place that made them for HP, so it pays to know that and tell your customers."
He also says it's wise to weigh the margin of profit against the number of sales needed to make it worth your time. "They have a 'beauty shaver' that costs $4.76, but you could get it at Rite Aid for that, so that's not going to make you money," he says.
"You want to buy something that costs $2.25 that you can sell for $5 or $6. But even then, you have to sell 100 to make it worthwhile. Instead, you'd be better off getting the 1 GB MP3 player at $63 per unit, and selling it for $125 so you're making $30 or $40. You don't want to be launching 100 auctions to make $2 a sale."
Another tip: "A lot of the products are stored here in the United States because they've already been shipped, so if you see a short delivery time, you can tell the items are likely already in L.A. or San Francisco."
Finally, McGrath says the biggest advantage to using Global Direct is that the manufacturers are vetted. "You can use PayPal and not have to worry about scams or manufacturers who mean well, but don't understand the export game and screw up your paperwork and everything gets stuck in customs."
Michelle Megna is managing editor of ECommerce-Guide.com.
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