Where is everybody buying there stock that they sell on ebay? I see so many sellers who are based in China or Hong Kong and guess they are either the manufacturer or direct wholesaler. They also seem to have an advantage of mail costs, it seems cheaper to send small items directly from China than what it is to send small items from within Australia via Australia Post.
So, how to compete?
Find different products
Find the same products at a lower cost
Offer better service
Offer better warranty
Most of those are a persons own effort, but where to find items at a lower cost? And where to find new products that Chinese suppliers don’t have?
I think as Amazon starts to set up in Australia that it will bring new competition and a new marketplace. Here’s hoping that Amazon Australia also introduces an FBA (Fulfilment By Amazon) program.
But there is still that question of where to source products. Alibaba and Aliexpress make light work of this as you can simply search for what you believe will be a hot seller. Note that you are never going to get as good of a deal as a Chinese buyer will get from a Chinese maker but it’s your knowledge of the local market that will be your advantage. Also, there are manufacturers from other nations that list products on Alibaba also.
The big disadvantage is postage. You cannot beat the Chinese on this. I cannot fathom how it is cheaper to send a small parcel from China to an Australian residential address than it is to send via Australia Post from within Australia. We as Australians really got stitched up there and basically had our local market destroyed.
That’s the real challenge, find a product that’s distinct enough to be different from Chinese supplied goods and that warrants the buyer digging deeper.