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Want to work as a reseller....pls advice

Last response: in CPUs
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February 17, 2011 7:32:55 AM

Hi all again :bounce: 

I was thinking for quite some time to work as a reseller for computer parts/cpu/gpu etc..

1)FIRST to setup a website for national/international online transactions
2)Computer assembling also.

Pls advice :)  :D 
a c 159 à CPUs
February 17, 2011 10:38:47 AM

Lots of competition out there. You may want to try it locally first.
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a b à CPUs
February 17, 2011 12:11:39 PM

Get a business license
Get all the tax information setup
Go to the following website to browse distributors and what they offer
http://promos.asus.com/wheretobuy/US/Distributors_us.ht...
Setup shop locally and build a website with a nice configurator
Take it slow from there, make sure you enjoy what you are doing and do it right
Eventually, over time, things will pick up and you should be able to make a decent living

As O1die said, there is lots of competition so it may not take off as fast as you think but if you do it right, it will pay off.
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a b à CPUs
February 17, 2011 12:16:04 PM

Where are you located? I am in Guangdong Province, China... the competition is fierce. Do you sell anything locally yet? Setting up online you will have competition from everybody in the world. I tried it a few years back, and found that even when you buy products in bulk... if it sits in your inventory for more than 3 months, you will lose money to sell it because the computer/technology market is always changing and prices go up and down like a roller-coaster.

And for the reselling you say you are interested in like CPUs and GPUs... be prepared to take a loss on those parts more than any gain. Most of the money is being made selling accessories like mice, keyboards, heatsinks and fans, and headphones. It is near impossible for a start-up business to make any money on CPUs or GPUs unless you have enough money to stock 1000's of each model the day you open.
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a b à CPUs
February 17, 2011 12:54:51 PM

Best bet is to see if you have options from distributors for "made to order" options where you can buy the parts as the orders come in...
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a b à CPUs
February 17, 2011 12:58:30 PM

But make sure you can setup something small locally first to get your feet wet. Jumping in blindly doesn't work very good these days. But I notice your name is "asiarules" so I just wondered if you are in China like me or somewhere in Asia. If so, you need to build a reputation on taobao.com before you make an independent website. In Asia, without taobao or alibaba reputation, no one online will take you seriously... but locally you can build face faster and then decide where you want to go from there.
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February 17, 2011 3:45:02 PM

1965ohio said:
But make sure you can setup something small locally first to get your feet wet. Jumping in blindly doesn't work very good these days. But I notice your name is "asiarules" so I just wondered if you are in China like me or somewhere in Asia. If so, you need to build a reputation on taobao.com before you make an independent website. In Asia, without taobao or alibaba reputation, no one online will take you seriously... but locally you can build face faster and then decide where you want to go from there.

well i am a new delhi born(india) we have a computer market here and whatever i analysed so far....according to that things are quite cheaper in this market if i compare it with online shops(local)

but i am not sure how to get best margin.

i am not planning to stock anything.....i was thinking of getting order first then the item. :??: 
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a b à CPUs
February 17, 2011 4:25:02 PM

Many local vendors here in China stock basic things, but if I want anything higher performance, they will order it for me and it is a little cheaper than Newegg, but a little higher than taobao. The things you want to stock are accessories, like I mentioned above. It is very difficult to compete online and worldwide since many people on ebay, taobao, alibaba and more will have more purchasing power than you and can undersell you. But if you make a local shop first, and become friends with a few people in the online circles, then you could make a good local business.

Stock all the small things, a few CPUs a few common video cards, a few common cases, then order everything else from good online sources that are close to you with fast shipping. So you can supply your local customers with anything they need at cheaper than local prices. Some of our local vendors sell everything, even high end parts... but since they always keep a high stock, their prices are sky high and people only go there for emergency buys.

But I have worked the retailing from different sides. My first job when I was 16 was for Wal Mart in the electronics section. They will sell things like computers and TVs below cost just to get people in the store to buy other things. For example, if you want to purchase a large TV, Wal Mart might only make $5-20. If you buy a 3 foot (1 metre) coaxial cable wire for $5... They just made $4.50.

Then I used to work for a Printer manufacturer that makes handheld barcode scanners that can print too (Monarch Paxar) and when they sell a printer they don't make much money... when you send it in for repair, we would charge you $100 for a $0.02 part.

So again, the moral of the story is start small and make sure you keep lots of small accessories, because the small things will make you rich slowly, but the high ticket items can make you poor quickly.
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February 17, 2011 10:20:29 PM

1965ohio said:
Many local vendors here in China stock basic things, but if I want anything higher performance, they will order it for me and it is a little cheaper than Newegg, but a little higher than taobao. The things you want to stock are accessories, like I mentioned above. It is very difficult to compete online and worldwide since many people on ebay, taobao, alibaba and more will have more purchasing power than you and can undersell you. But if you make a local shop first, and become friends with a few people in the online circles, then you could make a good local business.

Stock all the small things, a few CPUs a few common video cards, a few common cases, then order everything else from good online sources that are close to you with fast shipping. So you can supply your local customers with anything they need at cheaper than local prices. Some of our local vendors sell everything, even high end parts... but since they always keep a high stock, their prices are sky high and people only go there for emergency buys.

But I have worked the retailing from different sides. My first job when I was 16 was for Wal Mart in the electronics section. They will sell things like computers and TVs below cost just to get people in the store to buy other things. For example, if you want to purchase a large TV, Wal Mart might only make $5-20. If you buy a 3 foot (1 metre) coaxial cable wire for $5... They just made $4.50.

Then I used to work for a Printer manufacturer that makes handheld barcode scanners that can print too (Monarch Paxar) and when they sell a printer they don't make much money... when you send it in for repair, we would charge you $100 for a $0.02 part.

So again, the moral of the story is start small and make sure you keep lots of small accessories, because the small things will make you rich slowly, but the high ticket items can make you poor quickly.


I can afford to start a website and list items which are available in the computer market(right now have no plans for international shipping)

To stock these items i cant take that risk...(dont have that much fund)

It will be dedicated online shop only, currently i work in an USA Based call center and i make $6-7k in a year and have side business also as fast food cafe...but i am not even expecting that much as return from website in the beginning.

I just want to setup a website so i can get a headstart.
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a b à CPUs
February 17, 2011 11:01:28 PM

I will say unless you are super rich you will never make good money. Think of it like this newegg buys 10000 cpus from intel or who ever they are getting a deal there is no such thing as wholesale prices but only bulk buys.
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February 17, 2011 11:06:32 PM

christop said:
I will say unless you are super rich you will never make good money. Think of it like this newegg buys 10000 cpus from intel or who ever they are getting a deal there is no such thing as wholesale prices but only bulk buys.
would be doing multiple business's if i get good response then only i will give most of my time here....

but what do you say of current market? :ange: 
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a b à CPUs
February 18, 2011 2:09:34 AM

The computer market is impulse buys and impatience. Most people who want something, want it now or want it yesterday. With a local shop they are willing to wait 1 or 2 days for you to order something because you have a storefront or a face for them to trust... but when someone buys something online they want it yesterday. If you want to sell CPUs and GPUs and you cannot buy more than 1000 of each one, you will not get any discount from the suppliers. So lets say Newegg is selling a certain CPU for $200 and you want to sell it to someone online too. Well you will have to pay full price of $200 and try to sell it for more. Why do people want to pay more to you when they can buy it cheaper themself online somewhere else? Locally they will pay a little more maybe, because the local customer is considering shipping costs in the total price too.

If you can buy more than 1000 of this CPU, you might get it for $185 each and can make $15 when you sell it... but you still need to compete with Newegg and thousands of other retails with a long time reputation who can easily take returns, refunds and repair things that are send back to them. So if you are lucky enough to make $15 on each CPU, consider your overhead for customer support and shipping prices to send things back to your supplier for repair, refund, or exchange. It's not that easy.

To compete locally is not that bad. You don't need to worry about competing with Newegg or someone big who is underselling you... if you sell things locally you can charge what you want... just don't stock anything too expensive and you won't lose money if it fails. But if you can compete online, you need a way to make people want to buy from you and not someone else. If you can't sell things much cheaper that the big players, then people don't have much incentive to go with the little guy.
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February 20, 2011 7:04:54 PM

hmmm i got it,,,,,,

however i did my research online and felt like changing it from pc exclusive store to all electronics store..

what do you say?
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a b à CPUs
February 21, 2011 2:21:24 AM

That sounds better! Because no matter what you sell, accessories will be your biggest profit... so the more types of products you sell, the more chances to sell the accessories which will increase your overall profit margin.
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February 21, 2011 5:52:21 AM

1965ohio said:
That sounds better! Because no matter what you sell, accessories will be your biggest profit... so the more types of products you sell, the more chances to sell the accessories which will increase your overall profit margin.

As i said earlier i am not going to stock anything in the beginning(90% of the items) I will bring them in only if i get orders.

Coming back to the point

Is US Wholesale market is cheaper and better or chinese?? :sarcastic: 
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a b à CPUs
February 21, 2011 6:26:33 AM

Just depends on who you know and how much you buy. I have found that wholesale and retail channels in China are way out of whack compared to the US. Most of time I can buy something at retail price in USA and have my friends ship it to me and it can still be cheaper than the Chinese wholesale price.

Even though just about everything is made in China, they really screw the pooch on the Chinese people. An iPhone 4 here is over $1000... even if you go with China Telecom and a 2 year contract... it is still $800. In the US it is $100-200 depending on where you are geographically with contract and around $600 without.

One of my friends wanted an iPhone, I got him one from the US for $600 unlocked and he uses it with his China mobile. So in that kind of case high ticket items are cheaper on the US market than any of the Chinese markets (wholesale or retail).

But if you want to stock headphones, mice, keyboards, speakers... get them directly from China because it is insanely cheap.
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February 21, 2011 6:38:48 AM

1965ohio said:
Just depends on who you know and how much you buy. I have found that wholesale and retail channels in China are way out of whack compared to the US. Most of time I can buy something at retail price in USA and have my friends ship it to me and it can still be cheaper than the Chinese wholesale price.

Even though just about everything is made in China, they really screw the pooch on the Chinese people. An iPhone 4 here is over $1000... even if you go with China Telecom and a 2 year contract... it is still $800. In the US it is $100-200 depending on where you are geographically with contract and around $600 without.

One of my friends wanted an iPhone, I got him one from the US for $600 unlocked and he uses it with his China mobile. So in that kind of case high ticket items are cheaper on the US market than any of the Chinese markets (wholesale or retail).

But if you want to stock headphones, mice, keyboards, speakers... get them directly from China because it is insanely cheap.

Wow you seem to have good knowledge of it, can we discuss about this on messenger?? if yes you can add me id:- bharatthapa@yahoo.com

time:- after 7pm(indian standard time)
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a b à CPUs
February 21, 2011 8:12:32 AM

Do you have Skype, MSN or QQ? I haven't used yahoo in 6 years...
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a b à CPUs
February 21, 2011 8:15:17 AM

Also I am on Chinese standard time like Beijing and Hong Kong. It's 18:15 as I am posting this.

I should be able to help you today... but I need to travel to another city to update some paper work and won't be online from tomorrow until Thursday.
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February 21, 2011 8:45:22 AM

1965ohio said:
Do you have Skype, MSN or QQ? I haven't used yahoo in 6 years...

i believe you can add yahoo and aol id in msn/hotmail(option is there)
and vice versa

whats your hotmail/msn id?
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a b à CPUs
February 21, 2011 8:52:20 AM

I sent you an invite from my MSN.
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February 21, 2011 9:14:48 AM

1965ohio said:
I sent you an invite from my MSN.

hang on....you can add me in msn also, i reactivated my old hotmail id bharat.thapa1@hotmail.com

i have installed the messenger also send me the request.
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March 2, 2011 11:29:14 PM

Hi all name has been finalized and it'll be http://www.swingglobe.in :) 

thanks all for your contribution and one more thing before i register this domain, wanted to confirm is it okay to have 2"g"'s together??
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March 3, 2011 4:14:09 AM

no problem, its ok to have the gs like that... :) 
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March 3, 2011 4:34:25 AM

maziar321 said:
no problem, its ok to have the gs like that... :) 

Launch date NOVEMBER 1st week 2011 :) 
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March 3, 2011 4:41:12 AM

all the way in november? I would have thought a monthe would suffice...
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March 3, 2011 4:59:08 AM

maziar321 said:
all the way in november? I would have thought a monthe would suffice...

I've got my proprietor's license(which is called DBA in US i believe)
it'll take maybe a month or two to get IMPORT/EXPORT license and then me and my brother(partner) would finalize our talks with wholesalers and exporters. and after that we would be developing our website.

And we are trying to come up with something new and innovative, we dont want just another online shop.

Earlier i had plans to make it dedicated computer realted shop but margin was too low and it needed pretty much investment, so we changed our project to multi-items store. :) 
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March 3, 2011 5:03:41 AM

you should make it a build-your-own computer store. Kinda like build-a-bear workshop here in the states. You can give people a hands on expirience. :) 
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March 3, 2011 5:33:59 AM

maziar321 said:
you should make it a build-your-own computer store. Kinda like build-a-bear workshop here in the states. You can give people a hands on expirience. :) 

It sounds like a great idea but i am on a budget, so lets see
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March 3, 2011 7:11:09 AM

Just keep in mind the profit margins on hardware are...slim to say the least. A lot of the big box stores (fry's, bestbuy, etc. which I imagine aren't seen often in Asia) will lose money selling you a computer / hardware. That $495 computer someone just bought? It cost the company $523 plus shipping. They make ALL of their money on attaching service plans, accessories (mouse/keyboard/flash drive/software/etc) and hoping you'll pick up items in the store that actually make them money (computer desks/chairs/TVs/stereo). That's why they really, really don't like you simply coming in, buying a computer (in cash), and walking out the door.

Local computer shops make all their money in service.

Sites like newegg are making pennies at the most selling you a processor, but make it up in other areas.
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March 3, 2011 7:17:59 AM

1965ohio said:

Even though just about everything is made in China, they really screw the pooch on the Chinese people. An iPhone 4 here is over $1000... even if you go with China Telecom and a 2 year contract... it is still $800. In the US it is $100-200 depending on where you are geographically with contract and around $600 without.


They're not really screwing the Chinese...the carrier you purchase the phone from in the US subsidizes the cost of the phone because you're purchasing a two year contract and paying astronomical data rates. Let's say you pay 80/month for your phone, over two years that's nearly $2000. Phones in China are unlocked, hence the much higher price.
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March 3, 2011 7:29:14 AM

Genny said:
Just keep in mind the profit margins on hardware are...slim to say the least. A lot of the big box stores (fry's, bestbuy, etc. which I imagine aren't seen often in Asia) will lose money selling you a computer / hardware. That $495 computer someone just bought? It cost them $523 plus shipping. They make ALL of their money on attaching service plans, accessories (mouse/keyboard/flash drive/software/etc) and hoping you'll pick up items in the store that actually make them money (computer desks/chairs/TVs/stereo). That's why they really, really don't like you simply coming in, buying a computer (in cash), and walking out the door.

Local computer shops make all their money in service.

Sites like newegg are making pennies at the most selling you a processor, but make it up in other areas.

I know because of that i had to change my plan, here normally sellers they sell these goods at extremely high price and people they buy it because here in india we dont have any fixed price for computer accessories, its always approx.

for example we have an IT HUB called NEHRU PLACE(Biggest computer market in asia but not the cheapest) in new delhi

the moment you'll reach there you'll see plenty of computer/hardwares/ accessories stores and each store would have different price's.

You go and check 4 different stores and you'll end-up with 4 different prices.

For instance Phenom II x4 965

STORE1-$160
STORE2-$155 but they will add 10.12% tax
STORE3- Maybe $170
Store4:- Might have it for $150(inclusive of tax and all)

So i'd be listing computer related goods also but at fairly reasonable price(much better than what they are selling on ebay.in and blah blah sites)

My idea was to bring in computer related items and to sell it at pretty reasonable price so people they can buy it easily without hassle.

But you dont wanna do charity, if i am doing something than its obvious, i'd be expecting something in return also.
But in computers margin is extremely low(especially for online computer stores), you make money only if your website has enough respect to pull visitors.

I wanted to promote computers for gaming purpose had some ideas also but now its all vanished. :( 

So it will be all in one store. you dont know how much i had to fight with my parents , they are old fashioned and they dont understand that how much every second online market is growing, they didnt like my idea but still i am okay, if my online store does okay then they will understand, so i say amen.

I had something in my mind and i came out with that, so just wait for the website. :) 
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a b à CPUs
March 3, 2011 2:41:19 PM

Quote:
They're not really screwing the Chinese...the carrier you purchase the phone from in the US subsidizes the cost of the phone because you're purchasing a two year contract and paying astronomical data rates. Let's say you pay 80/month for your phone, over two years that's nearly $2000. Phones in China are unlocked, hence the much higher price.


When you go with China Telecom you can get a contract that comes with a home phone, internet and a cell phone... the problem is they only give you 10-20% off the $1000 iPhone price that you'd pay without the contract and all the extra services. When having a contract for all the services only gets you a $200 credit toward any phone that is over $200.

So even when being stuck in a contract and having all the extra crap you don't need... after 2 years you have paid $2000 for your iPhone. I've lived here in China now for almost 3 years, and I went ahead with the contract deal because I wanted 4M internet anways, but they gave me a free Huawei phone with Android OS that normally sells for $200.
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March 9, 2011 11:43:38 PM

1965ohio said:
Quote:
They're not really screwing the Chinese...the carrier you purchase the phone from in the US subsidizes the cost of the phone because you're purchasing a two year contract and paying astronomical data rates. Let's say you pay 80/month for your phone, over two years that's nearly $2000. Phones in China are unlocked, hence the much higher price.


When you go with China Telecom you can get a contract that comes with a home phone, internet and a cell phone... the problem is they only give you 10-20% off the $1000 iPhone price that you'd pay without the contract and all the extra services. When having a contract for all the services only gets you a $200 credit toward any phone that is over $200.

So even when being stuck in a contract and having all the extra crap you don't need... after 2 years you have paid $2000 for your iPhone. I've lived here in China now for almost 3 years, and I went ahead with the contract deal because I wanted 4M internet anways, but they gave me a free Huawei phone with Android OS that normally sells for $200.

Domain registered www.gobazaar.in :bounce: 
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August 22, 2011 1:21:55 AM

maziar321 said:
Ummmmm, it was hacked...

no it's on hold, i have started business also and have other work as well.
i did not see much profit in it and too much struggle. :pfff: 
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