Be Niche & Famous!
Many new online sellers want to sell what I call the mass-market “3Gs.” They are the latest Glitz and Glamour Gadgets. In particular, for women I am referring to designer clothes, designer handbags, or designer shoes. For men it is usually consumer electronics such as iPods, cell phones, video and audio equipment, DVDs, computers, electronic gaming systems or other similar items. If you are thinking that these are the type of products that you want to sell, then I have some great advice for you that will save you a lot of frustration. Forget about it!
I didn’t mean to burst your enthusiasm bubble. Instead, I just saved you a lot of time, effort, and money. There is no way that you, a small time entrepreneur, can compete in the designer fashion
industry or the consumer electronics marketplace selling the latest, must have gadgets.
Designer fashion knockoffs are the most illegally sold products, and you want no part of that. You must be an authorized dealer of designer fashions (including handbags) and have permission to purchase them from authorized wholesalers. It is nearly impossible for a new, unproven, online seller to be approved to sell designer fashions. Beware of any supplier that will sell designer fashions to you without qualification. It is almost guaranteed that they are selling illegal knockoffs.
Likewise, the marketplace for consumer electronic products is the most competitive, aggressive, and lowest margin business there is. You simply cannot compete with the large, online and retail stores. First, in order to sell most of these new products, you would need a warehouse, several hundred thousand dollars worth of inventory and insurance for about half a million dollars. If I still have not convinced you, look at CompUSA, Good Guys, and Circuit City. If they could not compete in this business, how can you?
When thinking about products to sell, forget the mass-market glitz products. You will have a much better chance of having a successful online business if you concentrate not on mass-market items, but on niche market items.
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