Read this article before you consider buying wholesale

Learn the true facts about buying wholesale and protect yourself

Planning to sell on ebay? Click here to learn the true facts and avoid losing money

Avoid getting scammed sending your money to Western Union or Bank Wire scammers to pay for wholesale merchandise!

What are secure payment terms?

"Your money is protected even after it leaves your pocket"

It is always good to trust the seller you are buying from, but it is better to protect yourself when you do business with companies from afar. Just as important as the suppliers prices is their payment terms. Secure Payment Terms exist when the supplier will accept credit card, Paypal, L/C, Escrow.com or COD. These are secure payment options because the seller will not be able to scam you of your money when you use these methods to pay. Do not send your money to a seller using Moneybookers.com because they no longer work to give a buyer chargeback to those who failed to receive their order. The scammers now use Moneybookers.com because they will be able to keep your money. Using Moneybookers.com is now just as unsafe and unsecured as using Western Union or Money Gram.

Whenever you pay a seller by credit card and Paypal you can get your payment returned to you if the goods do not arrive or they are not to your satisfaction. Whenever you pay a seller by L/C, Escrow.com or COD, the seller must wait until you receive your merchandise before they get their payments. The scam sellers do not like to use these payment options because they cannot get away with your money if they decide not to ship the goods you pay for.

The scammers love to ask for Western Union and Bank Wire (TT) payments. These payment options will allow the seller to get away with your money without sending you anything at all. These are un-secure payment options that you should avoid. The true legit sellers will never ask you for these un-secure payment terms because they are in business to deliver your goods, and not to scam you and run away.

The wholesale, drop-shipping and distribution industry is the powerful system that transports everyday merchandise from the manufacturer to the end-user or consumer. The product changes hands several times and gets diverted to many different locations before actually making it to the consumers that purchase these at the retail level.

Anyone working in the merchandising industry must decide what 'business' level on which they will operate; manufacturer, distributor, wholesaler, sub-wholesaler, drop-shipper or retailer. At every business level there are different market pricing structures, minimum ordering requirements and payment terms.

We have been in the wholesale resource industry for several years and have encountered buyers coming to us with unrealistic expectations, that often lead to them getting scammed and losing $1000's of dollars very quickly.

This article is intended to reveal the facts about the buying wholesale in an effort to educate buyers and sellers alike on the reality of this industry. In order to reveal the truth we must disclose the wholesale buyer's myths.

Myth #1: There are manufacturers out there willing to do drop-shipping.

The Truth:

You may have seen some of those selling wholesale lists claiming that they have in their directory manufacturers that will drop-ship single items a a product to your buyers at manufacturer prices.

A manufacturer is a mass-producer of a product, with means they are set up to produce a quantity of several thousands of each item. Their staff are trained and equipped to inventory, package and load bulk quantities for shipping by either container shipping, tractor trailers or rail cars. These goods are then transported to designated distributors, who then re-sell in lower quantities to wholesalers.

Manufacturers do not usually drop-ship because it is not profitable for them to sell in small quantities. Most manufacturers will not even sell to just anybody who wants to make a purchase, you would have to be an authorized distributor that can prove you have the financial resources to even purchase from the factory. The truth is that the lower quantities you sell the higher your operating expenses, and the higher the prices you must charge to your buyers. You will never find a supplier that can drop-ship goods at manufacturers prices.

Myth #2: I can make good profits selling on ebay using drop-shippers to ship the goods direct

                 to  your customers.

The Truth:

Those buying goods from an ebay auction are looking for a lower price on a product that they usually get in the stores at retail prices. Most legitimate drop-shippers offer prices similar to, or even a little higher than those offered on ebay for a specific item. Ebay is an auction site not an ordinary marketplace. Third party drop-shippers cannot compete with the prices for goods being sold on ebay because the buyers there have an expectation to pay less than retail, and sometimes less than wholesale.

I talked with a rep from a reputable drop-shipping company after buying their drop-shipping membership 2 years ago; and he told me that the ebay buyers expect lower prices than they can offer.

The best way to profit on ebay is to purchase your merchandise in bulk quantities from a legitimate wholesaler at bulk prices, and then ship to your ebay buyers yourself. By ordering in bulk and getting the volume discounts, you can fulfill the 'lower price' expectations of ebay buyers. If you desire to go into the drop-shipping business, it is best to sell the goods on your own website or even offline than on ebay.

Myth #3: I  can make a huge profit margin percentage selling electronics.

The Truth:

There are more electronics wholesalers and retailers in business than any other type of product. The only way to increase your profit margin is to buy in huge quantity of 10,000 of each item and re-ell then direct in your own retail store-thus eliminating the 'middle man' wholesaler. If you are a wholesaler purchasing electronics to re-sell at retail prices then expect your profit margin to be 10%-20% depending on the item.

The fact is that electronics prices are controlled by the industry makers and cannot be purchased 'dirt cheap' unless you buy it from some guy on the street who may have stolen it and wishes to unload it for a couple of bucks. There is no way you can buy from a legitimate supplier, an Apple Ipod Nano 2GB that retails for $149 at only $75 each. This would be the same as paying $2.79 for a gallon of regular gasoline in California, and then finding the same regular gasoline for only $1.12 in Arizona. The set wholesale prices for a various electronic product is uniform and will not vary that much.

The best way to earn good money on electronics is to concentrate on the volume of sales and not the profit margin percentage. If the average profit on an electronic product is $5 each, then work on selling 2,000-3000 units per month for an average profit of $10,000-$15,000  per month. As a rule of thumb, if you set your prices a little lower and can take a lower profit margin, you will make up for this with more steady buyers and more repeat orders. Besides a 10% profit of $50,000 in sales is only $5,000; but a 5% profit of $200,000 in sales is a much higher $10,000.

      Myth #4: I can purchase in small quantities and get 'dirt cheap' wholesale prices

      The Truth:

      People that come to us have such unrealistic expectations about buying wholesale goods. They want to buy 

      all the popular authentic apparel, shoes and electronics very cheap, with low quantities, pay by secure

      payment terms and have an unlimited supply to order. In the real world no one can fulfill all of these

      terms. If you want the goods to be at low prices then you must buy at least 10,000 units at one time to get

      low wholesale prices they expect.

     What we do is bring in wholesalers that have connections to the factory reps. They buy in large bulk and then

      re-sell in smaller bulk quantities. Or they put together a buying co-op that allows several smaller buyers to 

      place orders that will add up to the factory required minimum order before shipping out to the wholesalers.

     The wholesaler that is able to sell as few as 25 units may have purchased their stock from a supplier that can

     sell as few a 500 units. Every time the merchandise changes hands after they leave the factory, the higher the 

     prices will be paid by the end buyer.

      Myth #5: Locating a supplier willing to sell at low prices, with low minimum order quantities and

                      secure payment terms us very easy.

     The Truth:

     There are countless thousands of sellers claiming to get all these authentic goods and at very low

     prices, but there is a catch. If you are to purchase at low prices then you will have to buy in very high         quantity  amounts. If you can't purchase in large quantities then you will have to pay higher prices. When someone

     promises you very low prices such as a Nokia 8800 phone for $200 or an Xbox 360 for $200 each, then

     you should question about their required payment terms.

     Others will promise you the lowest prices, but most of these sellers are overseas companies that ask you to  

     send untraceable payments by Western Union or bank wire. Ask yourself, Is the potential of getting the

     lowest prices worth risking $10,000-$15,000 of your money?

See the following price list submitted to us by a UK seller. Notice that these prices are extremely low and check out the payment terms required by this seller.

MOQ is 20 units

THIS IS OUR FULL STOCK LIST AND PRICES:

Play station 1......... $120
Play station 2 ....$130
Play station 3.....$150
Xbox 360.........$200
GARMIN 396........$150
Game boy latest edition..$110
These games are brand new sealed in original company Box.

Apple 4 GB ipod nano =us$69.00
Apple 2 GB ipod nano =us$62.00
Apple 4 GB ipod mini silver m9160ll/a=us$49.00
Apple 60 GB ipod photo m9830ll/a =us$86.00
Apple 60 GB ipod photo =us$49.00
Apple 30 GB ipod photo m9829ll/a =us$73.00
Apple 512 mb ipod shuffle mp3 player m9724ll/a =us$56.00
Apple 4 GB ipod mini bluem9436ll/a =us$49.00

Payment method: payment: bank to bank t/t, we also use western union and money gram.

    The true fact is that those legit sellers offering secure payment terms do charge higher prices because the  

    expense of a merchant account, and Paypal. If you are ordering very large orders from a legit seller then you

    need to pay by a Letter of Credit (L/C) and not Paypal or credit cards.

Conclusion

The truth about buying wholesale is that everyone who sells wholesale is either a middleman or a broker. Otherwise you would have to buy direct from the manufacturer. Not many people can afford to do this because the manufacturer requires bulk minimum orders of 10,000 or 50,000 or more. The manufacturers do not deal with small time buyers like you and me because it is not worth it to sell 1, or 2 or 10 items.

Most people are looking to buy direct from the manufacturer and get low minimum quantity and factory direct prices. This is not possible. If so then we can put Walmart or Target out of business. The wholesale industry is well protected to keep these low prices out of the mainstream, so that the number of those who have the access is limited.

Those telling you they can get you factory direct prices are selling products that you can get anyplace. The suppliers we have in our Suppliers Network have websites but do not advertise in the search engines and you may not find their links in the first 10 pages on the search engines.

The true fact is that if a person submits their website to the free search engines they will appear in the Yahoo or Google search engine results. The problem is that their website may be listed on number 407,664 our of 2 million search results. Most people do not go beyond the third page in the search engine results to find what they are looking for, so those listed on number 250 will never get any traffic. Still these websites to show up in the search engine results.

We have been in the wholesale industry since 2002 and we have developed many new relationships that continue to yield other relationships. Besides we have many, many sellers wanting to get listed in our Suppliers Network because we have over 3000 members. Can you imagine 3000 serious buyers paying for your products? How much money would this mean for you.

The best thing is that our members have a lifetime membership, so they will keep coming back whenever need more goods to order. And since we update our access twice per week there will be even more goods products to choose from. We only deal with suppliers that offer secure payment terms because we want to stamp out fraud and scammers on the internet.

We have literally changed the way people buy on the web ever since we started our 'Starve those Western Union scammers out of business' campaign in September 2005. Ever since then people have started demanding secure payment terms and avoiding those who only ask for WU or bank wire. If we did not care about our members then why would we take such powerful initiatives?

The difference with us from others is that we publish the supplier prices and quantity and the payment terms so that you can decide before you order the access. We do not use tricks to get you in. Our business is not about making money, it's about helping others to start or build their business by providing reliable buying resources..

When you order the Authentic Suppliers Access then you will have 100% unlimited access to all of our suppliers and free updates for life. You will never be asked by us to pay again. Right now we have at least 200 and we are still verifying mew sellers before adding them to our Suppliers Network.

When you come across a seller that says they have over 1,000 wholesale contacts, before you buy their list ask yourself one question; did they really take the time to verify all 1,000 contacts to see if they even exist or accept secure payment options? I think not.

The very fact is that our suppliers network has made a lot of our sellers very successful, so we are doing the right thing here.

Others out there selling wholesale resources concentrate only on the quantity of sellers they can list. We concentrate on those offering secure payment terms that will allow you to get a refund if the goods are not delivered to your satisfaction. It is better to have 10 legit sellers to choose from than 1000 sellers that are unverified or questionable.

Very Important!!

Every seller in our Suppliers Network has committed to accepting secure payment options. If any seller listed in our Suppliers Network refuses to accept secure payment terms such as Paypal, credit card, Escrow.com or L/C then please notify us immediately at trpnet@hotmail.com

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You Now get instant access to our Buying resource Network! No waiting   Don't be another victim of a scam     Two New Free Bonuses!! 2005 Buyers Surplus Directory with Automatic free updates. Comprehensive a list of over 1000 (act. amt. 1171) , dollar store suppliers, manufacturers distributors ,etc	Get your unlimited access to all of our: * China electronic suppliers * 100% authentic Jordan, AF1 and Shox suppliers * American and Australian suppliers * Xbox 360 Suppliers * Ipod and Mp4 Suppliers * PSP Portable suppliers * Authentic urban apparel and sunglass suppliers * Mobile phone Suppliers * Watch and Jewelry drop-shippers * New and used computer and monitor Suppliers * Much more  Offering secure payment terms plus access to over 200,000 paying customers for only  $49.95 lifetime only $29.95 lifetime Pay by credit card using Clickbank and Paypal Click here to order   To pay by money order click here Your access page auto updated free for life!

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