Chapter 9 - Online Marketplaces

Sourcing products from the same sales channel or alternative channels is a viable approach. Those offering under-valued items make it possible for another merchant to flip the same goods for a profit. Newspaper classified ads and sites like Craigslist offer a wide selection of items available free of charge. Sales promotions on ecommerce sites like Amazon and eBay may also make it possible to flip items at a profit.

Pricing research is crucial in identifying under-valued items.

Channels

  • Craigslist
  • Classified Ads
  • eBay
  • Amazon

Advantages

  • Items can be sourced at a cost that allows for resale on the same channel or alternative channels
  • Items can be sourced in single or small quantities.
  • Price negotiation may be acceptable in some channels
  • Broad range of products available
  • Little or no challenge in identification of items
  • Opportunities can be browsed online, limiting travel time and expense

Disadvantages

  • Stock cannot be replenished (normally). 
  • Inventory may require shipping, adding to cost of business
  • Terms of sale vary by sales channel and by advertisement
  • Payment types other than cash may not be accepted
  • Inventory requires storage
  • May require discretion to avoid conflict with original seller
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