The interesting thing about online buyers is they are extremely 
price sensitive. A survey done by Forrester Research shows that 
73 percent of surveyed online buyers expect prices on the 
Internet to be cheaper than in stores. No wonder auction 
marketplaces are thriving. Among the most popular auction 
marketplaces growth of eBay is especially notable! Its market 
share is growing at roughly twice the pace of the over all 
market. So, it’s only natural if you like many other wannabe 
entrepreneurs thinking seriously to start an eBay business.

Say, after spending long hours on the eBay and doing much 
research offline and online, you finally have come up with a 
niche category of products to sell. But, there is one little 
problem! You don’t have a slightest clue where to get regular 
supply of this product for wholesale price. Often, entrepreneurs 
with great product ideas fail to materialize their dream business 
plan just because they are unable to find a right supplier. How 
to tackle this problem?

Finding a local supplier

Success in any trading business depends not only on how good you 
are in selling, it also relies greatly on your ability to source 
the product at right cost. If you have a fairly large list of 
products that you are considering to work with you have a variety 
of options to choose from. You may start your eBay auctioning 
business based on local liquidators, closeout dealers, government 
auctions, newspaper classified or Drop-shippers . But to start a real niche 
business you need to find a constant source supplier, which could 
be a manufacturer, a distributor or a wholesaler. Obviously, 
Internet is the easiest place to get the initial contact 
information.

Bear in mind that many manufacturers simply aren't able to handle 
small orders and don't sell products directly to retailers. Some 
times, the minimum sales lot is way too big for a small start-up 
company to manage. However, even if the manufacturer does not 
sell directly to retail levels, they will provide you with 
information on their products and refer you to their wholesaler 
or distributor companies, which will be in a position to cater 
your needs.

For some category of products, your best option is to attend 
trade or industry shows in order to locate a supplier. Check out 
websites of some exhibition centers in your vicinity and find one 
or two trade shows of your area of interest. Make sure that 
participants of the trade show are distributors and wholesalers 
as oppose to large manufacturers. After all, you need to find a 
supplier who will agree to work with your initial small orders.

Trade journals or publications of your related field also could 
be a great source in your quest to find a supplier. Trade 
journals publish information on industry trend, articles on major 
players, various industry related event schedules such as trade 
shows, and often carry classified sections. Sometimes, they also 
publish specialty issues such as a buyer's guide or a who's who 
issue. You may consider getting those issues by contacting the 
publishers.

Professional and trade associations similar to local chamber of 
commerce and other groups offer a variety of services, which are 
extremely useful to members and general people a like. Promotion 
of the industry and its products and referral services for buyers 
trying to find specific products are some of the services that 
they offer. You should not hesitate to contact these 
organizations for help.

Importing

Competition in world’s largest electronic marketplace is fierce! 
If you have to buy products from a middleman, you may find that 
your prices are not workable at all. What to do? Since most of 
the consumers products are imported any way, you may consider 
outsourcing your product from a foreign country. Today, thanks to 
globalization importing products are no longer as difficult as it 
used to be! If you are trying to buy a labor-intensive product, 
the best places are probably China – which is the hottest at this 
time, India, Thailand, Vietnam, Bangladesh and some other Asian 
countries. If you are looking for medium quality electronics and 
computer parts, your options are China, Taiwan, Korea, Singapore, 
etc. For high-end designer products Italy, Germany and France are 
your best bet. For intellectual property related products, Russia 
and other Eastern European countries are still a paradise.

Here are the steps you must take in order to import products 
successfully:

• Locate several suppliers either through online resources or by 
contacting Trade Commissions of respective countries.

• Contact the suppliers and see if they are in a position to 
deliver the right product. Make sure that the suppliers are not 
your direct competitors. Many foreign suppliers are actively 
selling products through eBay.

• If you find their price and quality of the product are 
acceptable get several samples. It is very important to give them 
an exact copy of the product you are looking for. Without a 
prototype you might end up getting something far different than 
you expected.

• Work out your cost, which include buying cost, packaging, 
shipping, insurance, customs duty, excise duty if any, financing 
and handling charges, etc. You may also incur other expenses 
depending on products and your location.

• Check out your supplier. If possible make a trip to visit the 
supplier. Ask for references. Contact their bankers if necessary. 
Importing requires absolute due diligence.

• Check with a logistics consultant about shipping and exporting 
rules of the country.

• Contact a customs broker to verify latest duty and other 
regulations related to importing of this particular product.

• Don’t forget to consider product life cycle, shipping time, 
seasonality of the product and other characteristics specific to 
your product.

Importantly, do your homework! You can sure make money by 
importing and selling goods on eBay. Thousands are already doing 
this. But, the key to success relies on your entrepreneurial 
spirit, due preparation, sound judgment and hard work. If you 
think you are ready, go for it!