Keeping in mind the MOQ is one thing but dont forget about the MPQ. Minimum Profitable Quantity.
Factor in postage costs, import duties and VAT if it applies to you.
Researching new lines is time consuming but very important. It takes up about 30% of my time. It should, as a new seller, take up the majority of your time.
Testing the market with new products and making a small order (less than 30pcs) is a good idea but it also tells your supplier that your not confident in the item and/or you haven't done your research. Don't go nuts to begin with but order steady amounts of a mediocre MOQ. With wholesalers/distributors its all about the numbers. Its natural for them to ask you your MOQ so dont be offended if they do ask you. If you want to order 10-20 then go direct to a manufacturer/distributor. Over time, and with growing confidence, you should aim to buy direct from factories.
As for margins, a 100% markup will leave you aghast on eBay. Initially aim for a 20-45% margin. your own circumstances will dictate how much that extra 10% profit margin means to you. Clearly though, your order size will dictate your margins. Explain to your supplier that you intend to make a long term business with them, if theyre from china mention "Guanxi" - its a long term business partner. Always check to see if they have stock and ask what the price would be if you doubled your next order. Always compare this with other sellers. Always make note of their shipping times. Aim to order again as soon as your stock levels fall below 50%.
When starting out, sell something you are passionate about. It makes it less dull when you are working 10+ hours a day. I started off with non-branded car stereos as I was into electronics back then. My orders went from 40pcs to 100 to 200 to 500 and so on up to 2000pcs per month after 4 months of solid trading. If you are considering electronic items check how many times they QC their items but dont rely onwhat they tell you!
When I first started out I pretty much sold off all my worldly possessions to fund my business as I had confidence in it. This came through thorough research. Don't ever give up though as the possibilities and opportunities from importing are endless.
Good Luck for your future business
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ʎɐqə ɯoɹɟ pɹɐoqʎəʞ ɐ ʎnq ı əɯıʇ ʇsɐl əɥʇ sı sıɥʇ
Last edited by cortex; 10-16-2012 at 05:08 PM.
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cortex
