How to Buy Products
at
Trade Shows
to
Sell On eBay

How to Buy Products at Trade Shows to Sell On eBay

eBay is a fantastic place to sell things. There are over 115 million buyers and sellers registered. And they have all joined eBay for one purpose, to buy and sell items.

Has there ever been a bigger and more accessible marketplace?

And practically anyone can sell on eBay. Items can be listed for as little as 15p so it is no surprise how successful eBay has become. Basically selling is easy. There are techniques and strategies that you can learn to improve sales but the general principle is simple.

The majority of us start off by selling a few surplus items from around our own homes. It is a great way to clear a garage or a loft but eventually

we run out of items to sell. At this stage the children will have placed a padlock on their toy boxes and your partner will not let you near the families cherished possessions.

And this is where you reach the stumbling block. The most common question that I get asked by subscribers to my UK Auctionline newsletter, is “Where can I get product to sell for a profit on eBay?”

It is quite understandable why people are confused about this.  If you read many of the hundreds of books on the subject of selling through online auctions the subject of actually buying the product to sell is hardly mentioned.

Yes you will learn all about niche markets, how to find them and how to target potential customers. But there is usually very little about acquiring products to sell. When it is discussed the following are often mentioned as being the answer to the problem:

· Buying from Car Boots and Charity Shops

· Buying lists of wholesalers

· Drop Shipping

· Buying from the Wholesale Category on eBay

Car Boot Sales and Charity Shops

There is no doubt that you can get bargains at car boot sales and sell them on eBay for a profit. I know I have done it myself many times.

But you cannot rely on it as a source of supply. Go to one car boot and you can get quite a few items for resale, go to another and get nothing.

Another problem is that these sales are predominantly held during the summer months and so your supply will practically dry up during the winter. And even in the summer if it is a wet day the sale is likely to be either very poor or cancelled completely.

One aspect of buying products from car boot sales that is overlooked is the cost of getting the products. Sure it is nice to buy say a book for a £1 and sell it on eBay for £5 but look at what it might have really cost you.

Say a 20 mile round trip by car to and from the car boot, petrol cost £2.

Time spent at the car boot searching for products 1 hour.

Journey time 30 minutes

Time spent researching, photographing and listing book 30 minutes.

Cost of listing book, Final Value Fee and PayPal costs around £1.

So the book has actually not cost you just £1 but £4 plus 2 hours of your time, all for £1 profit.

Of course if you buy several items you can spread the petrol cost and time between them but even so this does not seem to be the road to a secure financial future. From what I have seen these so called bargains are becoming harder and harder to find and this is due in part to what I call “The eBay Effect”.

This affects the market in 2 ways. First of all many sellers with good items to get rid of realise that it can be a lot easier and more profitable to just join eBay and sell them direct. This is much preferable to getting up early, packing everything in the car and going to a field or car park to set up your stall and then standing around for hours.

Secondly there have been quite a few articles and business opportunity publications, which have claimed that you can make very easy money buying at car boots and selling on eBay. This has attracted a great number of people all with the same idea to each car boot sale.

There are people with specialist knowledge and skill who can still make money from these events but for the average person if you enjoy going to car boot sales and you get the odd “find” that is OK but do not expect this to be a reliable and regular source of products.

Buying Lists of Wholesalers

You will see directories and lists of wholesalers offered for sale on eBay and elsewhere on the Internet. I have rarely found any that I have purchased to be of any real use. Many of the so called “links” do not work, some of the companies listed have gone out of business and others only do “cash and carry” i.e. you have to go to their premises to collect the goods. The other great problem with these lists is the people who buy them. Who are they? The answer is simple, people like you, people who want to buy to sell on eBay, in other words your competition. How are you going to get any marketing advantage if you are buying the same products at the same price that your competitors are. Quite simply you can’t.

Drop Shipping

If you have not come across drop shipping before it is quite simply a method, which allows you to advertise or list products that you haven’t actually purchased. When you get an order you let the drop shipper know and they send the item out directly to your customer. You keep the difference between what you charge your customer and what you pay the drop shipper.

The basic idea is very sound but again you will have to pay more because of the added service and convenience. Often the same item can be purchased for much less if bought through a normal wholesaler. Whilst drop shipping can be a good way to increase your number of listings you might well find you are working on quite small profit margins.

I have found that by putting drop ship items in my eBay shop for a cost of 5p an item for 30 days I can generate a small but regular profit but trying to build a really profitable business using just drop shipping I think would be difficult. Also beware that some companies and individuals offering so called drop shipping services are little more than middle men coming between you and the wholesaler and racking off a percentage of the profits.

It is also important that if you use drop shippers you find reliable companies to work with. Any problems with late or non-delivery will be down to you and it will be your feedback that will suffer.

Buying from the Wholesale Category on eBay

There are some great offers from wholesalers on eBay but there are a large number of people chasing them. It is one of the most popular and obvious categories for anyone to search if they are looking for products to sell on eBay. Prices can often finish above the normal retail prices that items fetch in shops and I can’t see how anyone can then hope to resell the items at a profit.

There are always exceptions to the rules. I know there are some people who still specialise on selling items from car boot sales and there are others who are doing very well with drop shipping. This can be for a variety of reasons, their experience, the length of time they have been doing it or because they have managed to position themselves well in niche markets. So I am not saying that it is impossible to build a really profitable business using just these methods but I think it would be difficult.

For many years before I began trading on eBay I had a real “bricks and mortar” retail business, in other words, a shop.  Buying products for resale from manufacturers and wholesalers was a daily task. And guess what?  There is a way that you can get in contact not only with wholesalers but also the distributors and manufactures of millions of products that are suitable for selling on eBay or elsewhere for that matter.

It is not a secret but I suspect that 98% of eBay sellers have no idea about it and if they do then they will not know how to make use of the information. After you have finished reading this report you will know where to find millions of products laid out for your inspection. How to establish a business arrangement that could lead to you offering items that no on else will be selling on eBay. And you will never have to ask again, where can I get product? You will be spoilt for choice.

Trade Shows

The very best place to source products is trade shows. Now as the name implies these are not usually open to the general public but this is not a problem because you are not the general public.

Because you sell or want to sell products on eBay you are in business. In other words you are “trade”. All you need to do is provide elementary proof and normally you can gain free access to most trade shows.

The purpose of these shows is for manufacturers, distributors, importers and wholesalers to let retailers see what products are available for resale.  For most retailers there are 3 ways that they can buy products for resale, by having a sales rep visit them at their retail premises, go to warehouses to view or buy stock and/or go to trade shows.

Trade shows have a big advantage because you get many companies under one roof and it is a lot easier to go to one trade show rather than visit twenty or thirty different warehouses.

There are Trade shows throughout Britain although the biggest and in my mind the best is held each February at the National Exhibition Centre (NEC). I am going to look at this particular event in detail but most of the points that affect attending this Fair apply to the others.

So lets start with the question of how you demonstrate that you are “bona fida” trade. There are really only 2 things that you need and they are a letterhead and a business card. Of course before you get either of these you are going to have to decide upon a business name. You may at sometime in the future decide to have a proper business name but for this exercise it is not necessary. You can just use your name and a description of what you do. For instance:

John Brown Marketing

Sally Smith Associates.

or something similar. You can easily create some letterheads using the word processing or desktop publishing package on your computer.

You may be surprised to learn that business cards are very important and serve several uses. As we have said they help to establish you are bona-fida and you will find that you will normally be asked for your card when making enquiries of exhibitors. There are two reasons why exhibitors are keen to get a business card from visitors. One is so that they can take the details from your card to add it to their mailing list. The other is because exhibitors know that there are only 2 types of visitors to a trade show, those that have the power and authority to place orders and those that do not. Having spent often many thousands of pounds for an exhibition stand they do not want to waste their sales staff time with “tyre kickers”. As the owner of your business you very obviously have the authority to place orders.

Another reason for taking a good stock of business cards with you to a trade show is that many displaying companies have a free draw competition. All you have to do is drop your business card into the box and you could win some nice prizes. Of course you will also be added to the mailing list of that company for a while but that can be a small price to pay if you win a good prize.

There are plenty of programmes around that allow you to print out business cards on your computer but my advice is not to use these. Because most inkjet and laser printers cannot cope with thick card used by professional printers the home made versions tend to be flimsy unimpressive cards that are easily recognisable for what they are.

To get 250 coloured business cards printed by your local printer will cost between £25 and £30 but I have a better solution. Vistaprint are offering to print you 250 professionally produced business cards for FREE. All you have to do is pay the postage of around £5. As obviously each order is printed especially you need to get your order in as early as possible as they can take up to 3 weeks to arrive.

To select your design and wording CLICK HERE

Armed with a supply of your business cards you are almost ready to go to your first trade fair. However, there is one other very important item you should have and that is a notebook. You will see an awful lot of product in the few hours that you are at the fair and although you will undoubtedly come away armed with brochures and catalogues it is a good idea to jot down any noteworthy points. For instance you may want to note down details of minimum orders or shipping costs.

Can you get to Birmingham?

Under normal circumstances it can be quite difficult for eBay sellers to make contact with manufactures and major wholesalers. But there is one place that they all gather under one roof and vie for your attention and that is at The International Spring Fair, which is held in Birmingham in February. They also have a slightly smaller event, the Autumn Fair in September.

In this next section I am going to concentrate on the Birmingham event because it is the largest of its type not only in the UK but throughout Europe. However, if you cannot get to Birmingham there are other smaller events held around the UK and in the Appendix I have included details and phone numbers a great number of events throughout the UK.

Most of what I say about the Spring Fair also applies to the other events

So even if you cannot make either the Spring or Autumn Fairs at the NEC I hope you will find the information useful.

But I do want to emphasise if you can possibly make it to the NEC during any of the 5 days of the event you will make some great contacts, discover products to sell and establish a good future supply source.

In 2006 the Spring Fair will be held as usual at the National Exhibition Centre between the 5^th and 9^th of February. The opening times are:

There are going to be over 4000 manufactures, wholesalers, distributors and others displaying at this event and the Fair will occupy 12 of the giant Exhibition Halls. If you just turn up on the day it will cost you £15 admission but you can entry for FREE by going to the Fair web site and registering. www.springfair.com.

The International Spring Fair fills the whole of the NEC complex and the exhibitors are spread between 12 Halls.

As you can see there will be a wide range of products on display and nobody will be able to see everything in a day. Therefore it is essential that you spend time looking at the web site www.springfair.com to get some idea of which particular ranges of products interest you and make a note of which Halls they are in.

You can go through the list of exhibitors on the web site and many have links from here back to their own sites. If you know what areas you want to specialise in you should be able to draw up a list of the various exhibitors stands that you want to visit. However, if you going seeking inspiration then just note which Hall are likely to be of most interest.

The purpose of the Show is for companies to display their product range  to buyers from all over the world. There will be buyers attending from all the major stores, catalogue companies as well as thousands of independent business owners. These are professional people many who control very large budgets but equally so the lady who owns the local toy or gift shop will also be there to order stock for the coming year.

It is not possible to buy anything from the Fair to take away that day. All orders made will be shipped to you at a later date. And of course there is no requirement for you to order anything on the day. The point of this visit is to make contacts and to view what is available. Whether you actually order anything on the day of your visit or just get the information and take it away to study is up to you. In many cases you will want to go home and carry out some research before actually placing an order.

In looking for products to sell on eBay you need to consider several factors.

·  Is it easy to pack?

·  Will it be expensive to ship?

·  Is it readily available elsewhere?

·  Which eBay category will it fit into?

·  Can you target a niche market with this product?

Some of the items that I have seen at the Spring Fair, which I thought could, do well on eBay include:

                 Dolls Furniture and Accessories

                 Novelty Salt & Pepper Sets

                 Pub related games and memorabilia

                 Reproduction Old Tin Advertising Signs

                 Paintings and Prints

                 Personalised Gifts

                 Software.

But really the list is endless and there are always new items at every show.

I realise that for many readers a journey to Birmingham can be quite a commitment but look at it this way. You are talking about building up a chain of contacts that could keep you supplied with products for years to come. How far would you travel for a day out at a theme park, the seaside or to attend a sporting event?  A day at the Spring Fair could be the boost that your eBay business profits so surely it is worth giving up a day to turbo charge your eBay business.

If you are able to get to Birmingham in February there is one purchase you really should make when you get there. That is the International Spring Fair Catalogue. It is not cheap and I suspect that it will cost around £15 this year but it will be the best buy you can make.

In the catalogue there are product and contact details of every exhibitor in the show. By buying the catalogue you will have what is probably the most comprehensive UK source directory available today.

 At most trade fairs you will come across four different types of sellers offering products and it is useful to understand the difference between them. Those four are Manufacturers, Wholesalers, Importers and Agencies. Often a company may fall into more than one of these categories for instance wholesalers are often importers as well.

From the eBayers point of view there is very little difference whether you deal direct with a manufacturer or one of the other categories. The most important considerations for you are going to be:

Price

Minimum order quantities

Shipping costs

Delivery dates

Price

The important point to remember about all prices quoted is that they are exclusive of Value Added Tax (VAT). This means that you will have to add 17.5% on to the price quoted. So if something is quoted as costing £100 then you will actually pay £117.50. (VAT is also normally added to shipping costs as well.)  If you have an annual turnover in excess of £55,000 per annum you are required to register for VAT and you will get this extra payment back. However you will have to charge VAT to your customers and then pass that on to the Government.

A useful pricing formula to know about is called the 2.35 rule. This will apply to many of the products you will see displayed at Birmingham.

It works like this:

Price of product to the retailer =  £10.00

                        + VAT                £ 1.75

                Total Cost to retailer  £ 11.75

Selling Price                               £20.00   (100% mark up)

                       + VAT                 £3.50   (17.5% of £20)

                     Sale Price             £23.50

i.e 2.35 x the purchase price of £10

On the above sale a VAT registered trader will make £10 profit if he sells the item for £23. But if you are not registered you can sell the same item for just £21.75 and still make £10 profit or if you sell it for £23.50 you will make £11.75 profit.

You will now I hope begin to realise the big advantages that you will have. Hardly any overheads compared to the average “bricks and mortar” businesses.  Also shopkeepers have to stock a wide range of products to meet their customers’ various requirements whereas you can be selective and concentrate only on high demands or high profit items.

Minimum Order Quantities and Shipping Costs

Minimum order quantities can vary from as little as £50 or be as much as £500 or more. This is one of the first questions you should ask when you see something that interests you, what are the minimum quantities and what are the shipping or carriage costs.  From my experiences many of the smaller companies are very accommodating when it comes to these points but the larger National and International companies prefer not to handle small orders so place prohibitive minimum order limits. Also if they have an outlet near where you live they may also refuse to supply you.

Delivery Dates.

Many companies will ask you the customer when you would like the goods you have ordered delivered. Unless you have stated differently you can normally expect them within a month of the event. However, do be aware that some wholesalers/importers have impressive displays on their stands but many of the items may be the only samples they have. They will only place the order for these items with the manufacturers after the fair and as many of these are based overseas they can take some time to arrive. A few years ago I placed an order for a batch of items with one company at the February event and the first part of the order arrived in June, another portion in September and the final part of the order the following January. This is unusual, but it is worth asking about delivery before you place an order.

Having decided that you want to place an order the next part is making the payment. You may find that as a new customer you will be required to pay for your first order when you place it.. A cheque is the normal method of payment and at the same time you can fill in a request for a credit account with that company. If you are completely new this may present you with a bit of a problem, as you may be required to supply a couple of “trade references”.

If you have anyone you know who is in business and is prepared to vouch for your bona fide it is worth asking them before you go to the event if they would be prepared to give you a reference if asked. You can assure him or her that it involves no commitment or guarantee on his or her part. They are just giving their opinion that you are an honest and trust worthy person. Of course if you prefer companies will be happy to supply you on “cash” terms and after a couple of orders you can always use them as one of your trade references for the future.

If you do open a credit account the normal terms are 30 days credit. In most cases this means that an invoice is dispatched around the same time as the goods and often with them. At the end of the month the company will send you a statement and you will be expected to make your payment by the end of the next month. This means dependent upon when you receive the goods you could have between 30 and 60 days before you have to pay for them.

In the next section I am going to give you 8 Tips for having a successful visit to the International Spring Fair and most of these tips apply to the other events as well.  I hope you find them useful.

8 Tips to get the most out of your visit to

The International Spring Fair

1. Wear comfortable footwear. The National Exhibition Centre is a vast complex and the Spring Fair uses most of it. To even see part of what is on show will mean you will be on your feet for quite a big part of the day.

2. Don’t buy the catalogue when you arrive, leave it until your ready to go. There is a very useful pocket guide, which comes with your registration documents and that is fine for finding your way around. The catalogue is a heavy item and you don’t really want to carry it around with you all day.

3. If you are not careful it is easy to get over burdened with brochures and catalogues as you go around. What I tend to do for any product that I am interested in is give them my business card and ask them to post a copy to me. This is also a good test of how good a company’s customer service is. From my experience about fifty percent actually ever send you anything. Of course if it is something I am seriously interested in then I grab the information there and then just in case. But be selective or after you have been in a couple of halls you will resemble a packhorse.

4. What I do tend to pick up is sample copies of the trade magazines or where applicable apply to go on their free subscription list. One particular magazine, which is always worth picking up, is “The Trader” You will find them in Hall 9 Stand H1A.

5. I tend not to mention eBay when I am talking to suppliers. Even today there are people who mistakenly consider that eBay is little more than an Internet car boot sale. I usually describe myself as either an Internet Marketer or as an e-commerce company.

6.  Keep your eye open for “Show Offers”. It costs a great deal of money to exhibit at the International Trade Fair and in an attempt to recuperate some of the cost a firm may make a special offer just for the show. These offers can be very attractively priced and may be worth considering. But remember they are only a bargain if are sure that you have a market for them.

7. Arrive as early as you can after the opening time. Between 11 am and 3 pm the more popular Halls can become quite crowded and it can be difficult to attract the attention of the sales staff.

8. There are plenty of free car parking spaces at the NEC and you will be guided to the car parks by traffic attendants after you have turned into NEC grounds. When you park your car make a note of the number of that car park N8, E6 or whatever and try and remember where you car is in relation to the car park sign. There will be thousands of cars there and I once spent an hour searching for mine before I could leave. As well as free car parking there is also a continual bus service running from to and from the car parks to the Show Halls.

There is Life Beyond Birmingham

Although without doubt the International Spring Fair at Birmingham is the major trade event in the UK for many manufactures it is by no means the only one. At the end of this report I have included a link to a list of many events scheduled throughout 2005 around the United Kingdom.  Many of these are well worth your time to visit.

One that I particularly like is the Torquay Gift Fair that is held in January each year. This is spread over several venues and you get the opportunity of seeing the products of some of the smaller regional companies that do not display at the NEC.

Another very good event is the Harrogate Gift Fair in July. So far in this report I have concentrated on Trade Fairs that cater for a wide range of interests. However, the specialist trade fairs that are held up and down the country are excellent if you are looking for specific niches to target.

Other Trade Shows of Interest between

January and June 2005

For details of other Trade Fairs and Exhibitions

in the UK

www.exhibitions.co.uk

This report has been compiled by UK Auction Line

www.ukauctionline.co.uk

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