How Small Online Retailers Protect Themselves From Getting Ripped Off

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  • onlineretailerThe latest trend in small business is for individual online storefronts to open up on larger sites like Amazon and eBay. Merchandise that they offer is purchased in bulk from wholesalers at huge discounts and then sold for a profit. To avoid untrustworthy dealers, buyers have begun to use services like SaleHoo to research products and to find reputable wholesalers.

    When it first became popular in the late 90s, eBay was a site where people used to sell junk that was collecting dust in the attic. Today sellers are using the site differently. Instead of operating their own websites, small businesses open storefronts on Amazon and eBay to offer products they have purchased in bulk from wholesalers, drop-shippers and jobbers.

    It’s a lucrative model because the difference between wholesale prices and retail prices can be huge. For example, an LCD screen monitor that sells for close to two hundred dollars at a an electronics store only costs around seventy dollars to buy retail. That means there is a huge amount of profit to be made for the retailer. More and more people are opening up online retail storefronts because of how much money can be made, and because they don’t have to leave home to do it.

    That doesn’t mean that there isn’t risk involved. It’s an easy way to create income, but it takes an initial outlay of cash, cash that might be lost if a shipment arrives damaged, not as sold, or a wholesaler proves completely untrustworthy. There are horror stories of people who have given money in good faith to middlemen who promptly vanished into thin air.

    To make up for the confusion, services like SaleHoo have started to draw in sellers and reputable dealers alike. SaleHoo unites vetted wholesale suppliers with small online retailers. Also acting as an introductory program into internet retailing, SaleHoo teaches users what they should sell to make money, who their target customers should be, and what to do if nobody is buying. But by far the most important service is letting sellers know where they can find cheap, quality products without the risk.

    The problem is that it’s not always easy for buyers to spot the reputable dealers from the rip off artists. For small retailers, that risk can potentially destroy their businesses. SaleHoo acts as a safety net and keeps that from happening.

    SaleHoo lists over 8000 trustworthy suppliers in a completely searchable database. Offering profitability tools to judge a product’s saleworthiness, buyers can make informed decisions about if an item is a good idea to carry or something to stay away from. This helps increase turnover and avoid getting stuck with dead stock merchandise.

    SaleHoo has a user-friendly interface similar to shopping on Amazon that is designed for the novice. Support is easy to get on the forums and through email. The annual membership is inexpensive and comes with a 60-day trial period. To find out more, visit SaleHoo site here.

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    Sophie Wolfson

    Sophie Wolfson is the main contributor to the informative FinanceNow podcast As well as Director at ReFinanceMe, a privately held company that provides smart loan advisory services for its vast number of clients. Sophie has helped thousands of people design and manage their loan programs more effectively through her enormous experience in the field of personal finance, insurance, loans and mortgages. Her articles on TheMoneyExpert will give you important insights on how to manage your debt more effectively, potentially saving you thousands of dollars.

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