Who understands Ebay Amazon and Overstock.com inventory procedures?

Discussion in 'The Watercooler' started by DDD, Jun 25, 2011.

  1. DDD

    DDD Well-Known Member

    I'm thinking about starting a new business on the internet and I do not really grasp how the sites work. Yeah, lol, I know it sounds strange to consider jumping in with-o true understanding! Yes, if I decide to really research the idea I will get professional help.

    Meanwhile maybe you all can provide some groundwork answers. My idea is to set up a purchasing web site for parts (my specialty), The premise is that businesses have overstock and obsolete parts that are collecting dust. Particularly in this economy they are eager to get rid of them but don't have potential buyers in their area. So...if a site was established that listed those parts a new market would open.

    If you buy from one of the mentioned sites as I understand it the item is listed for sale. The sellers ship directly to the purchasers and prepay for the items. Do the sites make money by having sellers pay for their merchandise inclusion? Do the sites take a percentage of the sale price? What about the return of goods...is it allowed? what procedure is used?

    I'm assuming the income from a few different levels. Advertisements can be sold on the site. Perhaps the sellers (who would be stores) pay a monthly or annual fee to be included? The shipping store would have payment assured by credit card or Paypal to assure qualified buyers? As the site owner would a percentage be paid by credit card for making the connection? i know there is an important niche there but don't know how complicated it would be to take it on with assurance of payment.

    Gee, it's a shame I'm not an experienced shopper. I know alot more how to sell than how to buy! thanks for any input. DDD
  2. DammitJanet

    DammitJanet Well-Known Member Staff Member

    I have no idea about amazon or overstock.com but I know about ebay and I would think with them you would set up your own store on there. Is that what you are wanting to do? I am kinda confused about this but that isnt hard right now because I havent been to bed yet cause I stayed up all night trying to figure out a crocheting pattern...lol. Tore it out three times...ugh.
  3. DDD

    DDD Well-Known Member

    So, Janet, when you have had your nap and your fingertips have returned to flesh color instead of red...when you buy from Ebay can you return the merchandise? Does the vendor only pay Ebay a fee to cover presence there or a % of the sale, too. No I'm not thinking of going on Ebay. I'm thinking of setting up my own site. Have a good nap. DDD
  4. DDD

    DDD Well-Known Member

    Found a library book that I think will answer my questions. I'll post back after I read it if I need the family. Thanks DDD
  5. Steely

    Steely Active Member

    Well - here are my thoughts............

    The 3 sites you mentioned are all very different.

    EBay - you set up your own account and go forward. Very easy, just like posting an ad on CraigsList. The only difference between CraigsList and EBay is that on EBay people pay via paypal and then you ship it to them. This would be the easiest route, and least expensive, and possibly a great way to get your foot in the door. People can return items, if that particular seller allows you to, which is almost always no.

    Amazon sells both new from the manufacturer items and items from other people who are "distributors". It is my guess that these other distributors are people who have their own store of let's say books, or clothes - and then Amazon is their liaison for distribution. Again, not sure about returning the items from other distributors on Amazon, but I do know that these people fall under Amazon's umbrella and ultimately those people are held accountable by Amazon.

    Overstock is completely different. They are like a TJMaxx or Ross online. They actually buy the overstock from department stores and vendors in cash, and then sell it online.

    I love all the sites you mentioned above - but each one is very different - and an Overstock model would be the most expensive and complicated one to start. You might research what it takes to get on as one of Amazon's distributors - but definitely start on EBay. Easy, easy - and I know people that have sold tons with little to no overhead = making some good cash.

    Hope this helps.