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Finding Acceptable Online Ebay Vendors: A Small Business Problem

Updated on April 19, 2012

With additional sellers signing onto Ebay every day, it is becoming increasingly difficult to secure vendors with a large enough profit margin to sustain sellers. It seems that if someone is savvy enough to sell online, then they are also knowledgeable when it comes to securing the same vendors. This starts a horrible economic cycle, where everyone tries to undercut the other sellers with the same product.

The business problem can be further defined “As a lack of wholesale vendors that will allow an individual or small business to purchase items at wholesale prices without purchasing at wholesale quantities.” This problem can be solved by using proper research. By scouring the internet and various other means, three possible outcomes can immediately determined.

The first and most preferential outcome would be to actually locate an acceptable vendor that would allow acceptable profit margins by allowing the small business to purchase at wholesale rates, and at retail quantities. Since the actual item that is being resold is of little consequence, the odds of finding a vendor with these requirements is actually quite good. For example, if the wholesale vendor sells TVs, or trinkets, it doesn't really matter.

The next immediately visible outcome is that a vendor or multiple vendors would be found, but that one of the critical puzzle pieces would be missing. For example, a vendor could offer wholesale pricing, but only if the quantity was an impractical amount such as 23 palates of something. This would effectively act as a barrier of entry for Ebay sales. This particular outcome appears to be the most likely.

The last immediately visible outcome is that no acceptable vendors can be located at all. This particular outcome is the least likely. With thousands of Ebay sellers online, they must be able to purchase their items somewhere. It should only be a matter of find out where, and selecting the vendor.

The success of each outcome can be measured by a simple points system. The outcome with the most points, would be considered the most successful. The three main components of the business problem are purchasing at wholesale prices, purchasing at low minimum quantities, and the ability to work with small business. Each component could be considered a point. The outcome with the most points would be considered the most favorable. This scoring system can also be used to decide if a particular vendor is favorable.

In order to solve the problem, much research must be done. This can range from scouring the internet for wholesale vendors, to subscribing to business magazines that may include appropriate sources. If all else fails, it may be beneficial to simply network with outer sellers to find out what sources they utilize. Through extensive research, this business problem can be solved. With a clear and precise method of measuring successful outcomes, this business problem is bound to find it's solution.


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