The wonderful world of wholesale is known by too many and understood by few. The reason why it seems so hidden is that there is a lot of profit in buying and selling wholesale. Those who know it don't want to share it. The fact of the matter is that if you want to make money selling on Ebay you have to discover the world of wholesale.

Wholesale is completely different from retail. With wholesalers you get extremely low prices, and the higher the quantity the lower the price. The reason for this is because wholesalers sell to retailers and they want to be able to sell huge quantities of their product.

For example, if you want to sell cell phone cases, you might purchase two or three to see how they sell. The wholesale company may charge you $2.00 for each of the cases. If you discover that the cases are hot sellers, you may want to purchase another dozen or so. At that point, the wholesale company may offer you a price break and you may only have to pay $1.50 or $1.75 for each of them.

Oftentimes wholesale companies will sell items in what's called a "lot." These lots consist of an assortment of merchandise that the wholesale supplier has grouped together and is offering for a set price. Lots are usually sold at substantial discounts. After you have gotten your feet wet and you become more familiar with the buying and selling process, you may want to consider purchasing one or two lots.

With a lot you have to keep in mind that you cannot pick and choose the merchandise that you want to buy. For instance, if you purchase a lot of 100 DVDs then you will not be able to pick the titles of the DVDs.

Often times a wholesaler will throw in reject merchandise in their lots. At rock bottom prices that you receive you will get enough good merchandise that it will make up for the rejects that you will get little or nothing for.

While it may take some time and effort to become familiar with the wholesale process, it's time well spent if you're at all serious about making money and selling online.

About the Author

Brent Crouch is the owner of Jillian Distributors a leading wholesale company offering a complete line of wholesale products including leather jackets, coats, handbags, purses, clothing, and accessories.