Buying Wholesale and SEM...

[Caspah]

I was thinking about trying this for the first time and would like some feedback from others who have already tried this. I was going to buy a niche product at wholesale prices and was going to sell it via PPC and SEO marketing. I'm sure some of you have done this on ebay although I did not really plan on using ebay much. I know it has its advantages and disadvantages, but I would like to hear from anyone who has already tried doing this. This is what I see so far:

Advantages would be setting your own price and not having to deal with rules and regulations of any affiliate networks. You would also not have to worry about being shaved by the affiliate network or the advertiser either.

Disadvantages would be having to use funds to hold inventory and having to do the mailing yourself unless you found a dropshipper. Also you would have to deal with fraudulent purchases. Another one would be taking the risk of dealing with a shady wholesaler.

Are there any legal disadvantages to doing this that I am not aware of?

Any feedback is appreciated.

 

[mreed]

I would factor how much time and effort it takes me to pack a box, drive to the post office and ship. Then multiply that by your sales goals.

Is it really worth all of your time and effort?

There are fulfillment houses that will store and ship your goods for you for a montly fee or based on volume. Do a google search.

I had a business for a time building and selling computers. I got plenty of orders and was able to ship on time.

What killed me was tech support and all of the unforeseen problems. People emailing and calling because they can't figure out how to turn the thing on, or it wasn't what they expected. I was spending 4 hours a day dealing with frustrated clients.

The same is with any business, the things you don't think about or plan for that will sink you. People will call or email. They will complain. Be ready for it.

 

[Majic]

About half of my money comes from this and yeah there is one thing I sell and make £50 on just for knowing all about how it works.

The disadvantages you mentioned aren't so bad I mean I buy stuff in lots of 5 so inventory and being over stocked not an issue. The worst thing is your competing with other giants like amazon and ebay so price can be a problem either getting great prices or really knowing your niche is key.

Trying to get send and forget stuff and telling the customer to get support with manufacturer is important if you are a one man band.

From a legal point (im in UK) once your turnover reaches a point you need stricter accounting (VAT registration) and possibly involve more staff. My stuff comes from abroad so I'd rather keep it all one man and avoid paying tax which would really eat in to my margin so it depends what your goals are - me I want multiple revenue sources incase one goes belly up, especially true with niche stuff