Whether you already operate a brick-and-mortar retail outlet or a web-only store, or are planning to start a retail business soon, the huge online marketplace eBay can be a very valuable selling tool. Here we provide you with some tips about how to resell wholesale products on eBay and how to markup prices from wholesale to retail for eBay selling.

First, you are going to have to decide whether you want to open your own eBay store, or whether you simply want to sell your merchandise on a product-by-product auction basis. There are advantages and disadvantages to both models.

• Product-by-product auction: If you are going to be selling products for which demand is very high, this may be the better method. Items listed within an eBay store do not get priority placement in eBay's search results and will be seen by fewer people. If you believe that a bidding war could develop for a particular item, you will want as many people as possible to see it. Additionally, eBay charges lower final value fees on these types of listings.
• eBay store: If you plan to do a high volume of selling on eBay, a store allows you to organize and display a large inventory quickly and easily. eBay also charges lower insertion fees for store product listings and allows these listings to run for a longer period of time. Additionally, every eBay store has its own dedicated URL, so you can advertise your store and direct customers to check out your products there, which is especially useful for retailers who have no other web presence.

Once you decide on how you are going to do your eBay selling, you need to determine how you will markup your prices from wholesale to retail. Even if you already operate a brick-and-mortar store or an online outlet, you may have to adjust your markup to better compete with other eBay sellers.

• Scope out your competition: Whenever determining markup, you need to consider your competition, so search eBay for products that are the same or similar to those you plan to list and take note of what prices they are fetching. Don't forget to look at what your competitors are charging for shipping; some eBay sellers list items at a slightly lower price than they are truly worth, but make up part of the difference by charging slightly more for shipping than necessary. Taking this route is perfectly fine up to a point, but note that excessive shipping charges could result in eBay removing your product listing.
• Consider your expenses: As with brick-and-mortar retailers, sellers who use eBay need to take into account what it costs them to acquire product wholesale, plus labor costs and overhead costs, to get a sense of their total expenses when it comes to stocking up on a product. Once you know your expenses, one standard retail pricing strategy is to simply multiply those expenses by 2.5-3. But don't forget to take into account the difference between your wholesale markup and your actual profit margin. If you markup a $5.00 item 50%, to $7.50, your profit margin is only 33%, not 50%. Make sure your profit margin is high enough for you to earn the gross income you need to do well each month.
• Choose your wholesale distributor wisely: To earn the best profit margin you can, you'll want to be sure you're getting the best wholesale prices possible on your merchandise. See our articles "Tips On How To Buy Wholesale Products" and "Tips On What Questions To Ask A Wholesale Distributor" to get advice on how to buy bulk merchandise smartly. And remember to check out product sourcing websites, such as ASD SourceBook, to see product listings from thousands of wholesale suppliers and do price comparisons quickly and easily anytime!

Start sourcing wholesale products for eBay selling on ASD SourceBook now!