Wholesale Company Undercutting Me on eBay

[Ina]

In the June 1 issue of AuctionBytes-Update, we'll include a letter from a reader that says in part:

"... I am a dealer with a wholesale company for the express purpose of buying "stuff" at wholesale to auction on ebay and I found out that this wholesale company was also selling this "stuff" on ebay under a fictitious name at way below what I could sell it for, what would you do?..."

How should sellers buying from wholesalers handle this issue, and how can they avoid it in the first place?
_________________
Ina Steiner, AuctionBytes.com

[DianesVintageStore]

I would advise the seller who wrote you to invest in another market niche, preferably one that involves multiple suppliers so the loss of one doesn't jeopardize the business plan. Maintaining a diversified inventory from multiple sources will insulate a dealer from market fluctuations and supply shortages.

Just my .02
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Diane
Diane's Vintage Store Website
http://www.dianesvintagestore.com

Diane's Vintage Store at Ruby Lane
http://www.rubylane.com/shops/dianesvintagestore

[kjp55]

First, I would stop buying from this so-called wholesaler. They're only hurting themselves by setting up deals with associates and then undercutting them within the same selling venue.

Second, these here today-gone tomorrow wholesale scams are just that, scams. Anyone can buy merchandise from a discount closeout warehouse (see the following for examples..... http://www.cookbrothers.com/ http://www.worlddist.com/ http://www.agsmembers.com http://www.desperate.com http://www.frontrowent.com/ ) and there are lots more. To be a true wholesaler, most states require a distributorship license and a dealer network, where the dealer is the only authorized agent allowed to sell at retail.

Next, you have the Amway/Quixtar folks, the SMC gang, etc, etc. You can buy somewhat at wholesale from these folks but the competition on eBay is fierce. There are literally millions of SMC and Quixtar dealers/distributors throughout the world, with thousands trying to sell the exact same products on eBay.

If you really want to make it big in the wholesale biz, go direct to the source and find that next Pet Rock, gain exclusive rights to it and market the heck out of it.

[jjsgems]

I have had the same experience. I run into a great wholesale website - only to find out they are selling on eBay! I just go on to someone else. I don't even mess with anyone who is selling on eBay - defeats my purpose entirely. Like the gal said, there are a million of them on there. Try http://www.wholesale411.com - they have tons of them listed.
PatR