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Ive taken a shot at importing products from china and reselling them in eBay.
I imported a product which i thought that i would make a decent margin on. How wrong i was. After paying shipping costs, broker fees, customs, duty, ebay and paypal fees (not to mention most of my items were damaged from the shipping company), i sold them item for a total profit of……drum roll……. $3.
Now that the Ozzie dollar is so low, makes it a lot worse. I have since spent every free moment i have for the past month researching and speaking to suppliers for potential products with no luck.
Do you all encounter this? Any advice would be great
This could be awesome, if you invested $1 that is 300% margin.. Sweet.. But i assume by the tone of the message that this is not the case
My comment, coming from an experienced importer, would be that this journey is fraught with danger and without knowing much more about you personally is difficult to say if this is normal or not. What i mean is that there are quite a number of people that perceive importing is simple, identifying products is easy, knowing what you need to know is correct and so forth when in reality this is extremely tedious and quite costly.
Furthermore, i also seem to encounter many people trying to import and if you can not buy the said item at the right price you are already pricing yourself out of the market. And in most instances, most people i come across are importing such small quantities, not saying this is right or wrong, that making a decent margin is near impossible. Meaning they can not negotiate best prices for goods, nor get cheapest shipping options to benefit them, etc.
Another hurdle is always shipping, this is not a plug for me at all, as they tend to shop for the cheapest quoted price and this tends to burn most first or second time importers until they realise that knowledge and expertise has a price… Not a heavy one, just pay accordingly.
It is about research, sampling, etc and sometimes can take many trials before you get it right. So the less you import the less profit, especially if you sample every supplier… Lets say you import a $5 item as a sample, there is $5 + $30 to ship etc so that $35. Lets say you want to import $1000 worth of products, your sample on your first shipment is almost 4% of your cost to start with.. And then if your goods are damaged and you skimped on getting insurance to cover your goods, oh boy.. there is more money gone, and then if the product has faults (which a small % tends to) there is more money down the tube
Sounds negative, but its not, it is just based on economies of scale.. Everybody in importing is hurting with the USD and will potentially go further down, so your research and learning will need to keep up to speed with demand and supply so you know where you stand every step of the way in your journey.
Lastly, without knowing your investment amount, i am going to say that this could have proven an extremely valuable learning curve and on your next import you may avoid certain traps and pitfalls that may have prevailed this time (and will watch for next time) and allow you to increase your profits considerably..
Cheers, and dont be disheartened.. We dont always get it right first time around, not many babies learn to walk without a few stumbles along the way