Wholesale On EBay 

This is the more "traditional" method of selling on EBay where you post buy items, list them on EBay and then when you sell them you send them off to the buyer.

Here are the downside's to buying wholesale when you compare it to dropshipping. Read my page on dropshipping on EBay if you need to learn more about dropshipping.

1. There is obviously a financial outlay before you make money because you need to buy the Items you plan on selling.

2. Typically when you buy wholesale you need to buy in bulk (you discount prices obviously) but you need somewhere to store the items.

3. You will need to send the items off when people buy them.

You don't get any of these problems with dropshipping because the product owner send the item for you and you don't pay for the item until you have money from the buyer.

There are also some upsides to wholesale buying. The biggest advantage is that you can buy the items for much less than when you dropship.

As a dropshipper you're basically a middle man for a supplier. Because of this the profit potential is much less per item sold because the supplier demands more money because they sort out the packaging and posting.

But when you buy wholesale you buy the item and then you're alone. This means you pay much less for the items and usually the more items you buy the more of a discount you get.

Buying the items for less makes the whole process easier because you can sell items in almost any market. When you're a dropshipper you need to spend more time doing market research to make sure your items will be profitable.

When you buy wholesale you can usually always make money with your products so long as there's demand for the products you buy.

As I say on the dropshipping page, use Hot Item Finder to find profitable products and then use Salehoo to find a wholesale resource.

Salehoo cater for both dropshipping and wholesale and only provide reputable companies so your chance of being burned by a scam is much less.

There are a lot of scams and rip offs in the wholesale/dropship market and as a newbie it's easy to lose money, if you deal with the resources Salehoo give you this won't happen.

So to sum things up, use Hot Item Finder to find profitable products and then use Salehoo to find a wholesale resource.