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Resellers beware...read before you commit to selling anything.
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New Member
Location: Texas
Registered: 12/31/02
Posts: 3
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This is a summation of my "very short" experience with Directron. I am a new reseller and this was my first experience with any company that hosts to resellers. It's kind of long...but if you're becoming a reseller you need to read this first.

Smile12/30/02...I found Directron online and was very impressed with their site as well as their pricing. Then I discovered that they welcome resellers and somehow/somewhere offer reseller pricing (never found anything with an RP next to the price), but was still convinced that some of their pricing was very good and I could resell them and turn a small profit.

Wink12/31/02...Went out and got a Tax ID as well as a resell certificate.
Also on this date I posted the below question to anyone who could answer (since Directron discourages contacting them directly on these types of questions without going through this maze of a forum first):
Confused"I'm looking to resale your products online. My only concern with this is you don't post your quantities online. What if I post a product on an auction site and the auction closes 7 days later and I come back to place a drop ship order and you're sold out?"

Big Grin1/4/03...I placed an item on Ebay for a 7 day auction and put a good reserve price that covered my cost, etc... With 4 days left on my item I hit my reserve price and was quite pleased as well as excited, because this would have been my first item that closed on Ebay.

RazzBetween 1/4/03 and 1/10/03...I continued to post new auctions for this item, since it was well accepted by Ebay Members. Also I kept checking back for the answer to my above question placed on 12/31/02. Which has still yet to be answered.
Here is the link to my question:
http://directron.infopop.net/eve/forums?q=Y&s=476097824&a=tpc&m=6063058096&f=564091644

Here it comes...you ready for this!!

1/11/03...My first 7 day auction closes. I briefly converse with the individual that was the high bidder a bit concerning shipping and such. Then let the customer know that I'll ship the product to him right away and he should receive it within a few days. Jump to Directron.com and what do I find. The answer to my above question. They were so kind as to not only answer my question...but give me an example as well.
Mad MadTHE ITEM WAS SOLD OUT WITH NO ETR Mad Mad
I went back to my customer and let him know that the item just now sold out "Like Joe just drove off with the last one or something." He was quite upset, but understood. Luckily I hadn't accepted his payment yet.

Over the course of the last seven days I've read several very good eBooks (some free, some not) on reselling on the Net and have run across several real and valid Dropship companies that don't sell to the public...only to those legitimate individuals that have a Tax ID. Now I am convinced that Directron is nothing more then a big online retail chain that tries to masquerade as a valid source to resell from. If you want to know how to become a valid dropship reseller email me at sstump@coserv.net. I won't ask for anything from you (money or otherwise), won't try to sell you on anything, I will just refer you to a few sites that I've found to be very helpful on the subject and have expanded my knowledge 10 fold on reselling online.

Thanks,
Shawn

P.S. I had to end all of my other auctions on Ebay. In case you're not aware...Ebay doesn't refund listing fees if you end the auction. Needless to say I took a lost on all of the listing fees...not DIRECTRON. I guess you live and learn!
Senior Moderator
Member
Location: Osage Beach, MO, USA
Registered: 09/19/01
Posts: 16344
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I think you have the wrong idea of what a reseller is. What you are talking about is trying to make a fast buck by shilling auctions. Personally, I stay away from auctions like the ones you were trying to do. For exactly the same reason you ran into: you don't actually have the item on hand which you are trying to sell. In effect, you're selling futures. What's to stop you from not coming through if the auction never bids high enough to cover your costs of acquisition?
I am a reseller that uses Directron as a supplier when they have the best price overall for what I am using. I build systems and sell them locally, and purchase inventory from a number of places, including regular distributors to the industry like Amax, TechData, Ingram Micro, etc., and when the product is best from Directron, I use Directron. I get a small discount from Directron, which helps in making a profit on what I build and sell. That's the extent of what they offer resellers.
Directron is not a chain. It is a single operation in Houston, very large as far as that goes, and they import many products like cases and power supplies directly from the manufacturers in China. They handle many hundreds of orders a day. It is not at all unusual for them to sell out of a supply of several hundred of an item in a week or less. In that respect, it would be folly to try to auction off an item which you have not yet purchased from them or any other distributor. For example, I placed an order directly with Amptron, the motherboard manufacturer about 12/30, and although they had just sent me a price list showing the motherboards I ordered, they contacted me about 3 days ago to tell me the motherboards are out of stock, and won't be available for another week or so. It's just the way things go.
Member
Registered: 11/15/02
Posts: 15
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SteveS, With all due respect I must note that Directron does give an encouraging come on to "resellers" concerning the "Dropship" method for those who may be interested in selling at auctions. See here and you will find this:

"(3) You can order items from us and have it Blind Drop-Shipped (BDS) directly to your customer while the invoice is mailed to you. The package will appear to be from you instead of Directron.com. This is especially a great tool for resellers who sell our products through online auction sites."

This could, and apparently has, encouraged a novice attempt to make an honest buck at auction. Your explanation as to why this is very risky concerning inventory is valid and I totally agree with you but it's easy to understand why this happened.

I do not use BDS for exactly the same reason. However, I do at times order 10 or more units and spread my shipping cost equally, if I still have a margin. Admittedly most items go into the systems that I build and sell but the leftovers can still produce a profit all be it a slim one sometimes. Hopefully Stump will not discount Directron completely and purchase a couple of units at a time for auction and save the profits to purchase more when the price is right.

Maybe, for the sake of first time resellers, Directron should consider adding a clearer statement concerning the possibility of items being unavailable due to inventory depletion concerning auctions and BDS.

Regards,
hopper
Chief Moderator
Member
Location: Houston, TX
Registered: 02/14/01
Posts: 10191
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1) As far as RP -- we still have some items but we don't always mark RP on the title. Now it's in the item description and looks something like:

Reseller Pricing (*RP*): $64.00 per unit. $63.00 per unit for 20 pieces or more.

A search for *RP* shows all reseller priced items.

2) As far as stock is concerned -- The best way to avoid this problem is to carefully pick items that are almost always available as opposed to items that are unique/obscure. Those type of items may have limited stock. Our newest items are also a bad choice since new items ussually arrive in limited quantity. Items marked with *RP* are items we almost always have in stock.

If doubt exists then you should contact sales directly and inquire about stock status / quantity before placing any sort of auction.

---

Update:
We are now considering a new service that will make reselling via auction easier and more reliable. The new service may be added in the next few weeks.

Have a great day!

[This message was edited by Lee Penrod on 01/12/03 at 23:11.]
Member
Registered: 10/08/02
Posts: 11
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Lee Penrod,

I would be extatic if reselling via auction would be made easier! I have been buying small quantities (10-20 units) and as I get the items in, then I put up auctions.

-Ed
New Member
Registered: 05/08/03
Posts: 2
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I'm sorry but, let me see if I have this right... As a reseller, items were sold which were not in the reseller's physical possession, much less legal ownership. I believe this is called criminal fraud in the United States.
New Member
Registered: 11/16/03
Posts: 2
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I was just wondering if Stump could maybe list some of these other valid dropship resellers. I'd be very interested to looking at them.
New Member
Location: whitewater, wi
Registered: 01/22/04
Posts: 3
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I agree with Cal Bear i belive this is illeage to sell an item you have to have legal ownership and to have legal owner ship you have to have the item, becuase 75% of owener ship is who ever has the item. so to sell an item you do not have, could be consider fruad
New Member
Location: Houston, Texas, USA
Registered: 02/09/04
Posts: 1
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It IS NOT illigal to sell items in this manor. In fact is is the norm an Ebay and online mall stores such as "Yahoo". There are people numbering in the 100's of thousands that sell on Ebay useing the "Drop Ship model". And they make prety good livings some of them. I'm not a legal expert and dont realy know the law pertaining to this topic. I just dont see how there could be anythink illigal about it.
Moderator
Member
Location: Charlotte, NC, US
Registered: 01/10/02
Posts: 6771
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Might want to read the Ebay rules Gelvis. They specifically say you have to have possession of an item to sell it.

No they don't seem to enforce it, and no a rule doesn't mean it's illegal. But it is a violation of the user agreement.
New Member
Registered: 02/03/09
Posts: 1
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That's the risk you take when you don't actually have the item in your posession.
New Member
Registered: 01/04/11
Posts: 3
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So let ME get this straight...Directron can drop-ship to us, but for us to do it is illegal? Is that what I hear? Many items from Directron come from their 'affiliate' and are subject to being out of stock etc....but yet I thought you just said that you must have physical possession to sell or its illegal. What rock do you retards live under? This is the 90's...er, wait a minute, this is the 10's...get a life!!
New Member
Location: Richmond, TX USA
Registered: 01/10/12
Posts: 1
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I have done as suggested, doing a search for "RP" and "RP Camera" to find the reseller products available. It gave me a long list, a fraction of which I'd be interested in selling. When looking at the descriptions for the reseller pricing, I am not seeing it anywhere. I even did a search for "reseller pricing" and got a short list of some sort of window appliques, which I'm definitely not interested in selling.

So how do I EASILY find products available for resellers? Are there going to be any that I'd be interested in selling to my customers? I'd like to offer cameras, computers, printers, software, and other consumer products (no cell phones) -- not parts or surveillance equipment or anything like that.

The Purple Iris

[This message was edited by Purple Iris on 01/10/12 at 10:44.]

[This message was edited by Purple Iris on 01/10/12 at 10:45.]
Chief Moderator
Member
Location: Houston, TX
Registered: 02/14/01
Posts: 10191
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A lot has changed since this thread was started. For the most part, we do not offer special pricing to resellers. Our website pricing more or less reflects the price you would get, however over you may earn a flat discount of 1-4% (2% is the average discount) after achieving certain levels of ordering. This should be discussed with our customer service department after achieving a minmum total order volume of 50k. If you need pricing help or stock availability help, we can provide help in the form of datafeeds that you can integrated into your systems and can help with some sample code to work with the data -- however you will need to do a bit of programming.

For more information about that please email me directly - lee @ directron.com (remove the spaces). Please provide your company name and what you would like to achieve when you email.

-Lee Penrod,


CTO / VP, Directron.com

Have a great day!
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