 Re: Inventory SUppliers?
It is very difficult to create a long term business that will last if your products are counterfeits. Yes, the profit margins are huge. But that is because it comes with a RISK.
When you sell counterfeits, you have to deal with low quality products with misspellings and misspacings on the product packages. Custom seizures. VERO takedown notices. Customer complaints. Closed eBay and PayPal accounts. And the possibility of getting caught and being sued, or even going to jail. It just isn't worth it.
Not to mention, the competition is cutthroat on eBay and Amazon among counterfeit sellers. So, your profit margins are going to get squeezed anyway. You probably will not make as much money as you think you are going to make.
You sit down and start doing numbers. You start drooling, because by your calculations, in month number four, you will have turned your inventory over enough times and reinvested enough to become a millionaire. But what your math does not take into consideration is the time between orders, how long it takes to get replacements for seized items, interruptions in your selling because of closed accounts, returns from people who will be VERY ANGRY with you because you sold them a phake, and a million other things.
Then, one day, you get a certified letter in the mail from Johnson & Pham, a law firm located in Woodland Hills, California. They caught you selling their client's products and now they want $10,000 from you in ten days or else you can expect to be sued by them. Their letter says they have proof because their undercover buyer purchased from you and determined the item was a counterfeit. So, you start going through your orders, and lo and behold, you find the one from the undercover buyer. You panic. You don't know what to do. What the hell are you going to tell your parents, your spouse, or whomever. While you have probably made more money in the last few months than you are used to making, you don't HAVE $10,000 to make them go away. Then what?
If that sounds good to you, then by all means, go for it. But you do NOT have to do that to make money on eBay. Get your mind OFF the electronics and the brand names. Find a niche - there are MILLIONS of them. No, you won't find one that will be as easy as ordering one product from a website in China and re-selling that one product on eBay. It takes a lot of research and you might only make $200 a month from one niche. But if you start now and build that up, after a few months you have 10 niches. Then 100 niches. Now you are making some good money, doing it LEGALLY and building something that will still be around in ten years. And you won't have to worry about the brand owner's law firm putting a lien on your house because they got a judgment against you.
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