I was doing some research on the internet the other day and I came across the Rip Off Report which is a consumer site warning others of the dangers of doing business with different companies.

As I’d been looking into different wholesaler suppliers, I thought I would just have a look and see if there was anything there about them which might help me gauge whether they were a good company or not.

Obviously, because there are so many wholesale distributors out there lots of the ones that I looked up didn’t come up with anything, but I was really surprised to see the number of reports about one major company that supplies to a lot of eBay sellers.

What was most surprising was that I thought this was a legitimate drop ship wholesale supplier - or at least that was what all the information I read had said – but reading through this I found out that they were really just a hub for the transactions to be conducted through. In more traditional business models, this would be something that people are more likely to avoid. However, when it comes to internet selling, this is actually something that is highly sought after.

Of course that’s not a bad thing that it’s an easy place to get lots of products, but I didn’t realize just how high the markups were on the products that they were offering. I read that in some cases the markup is as high as 15% on the price, which when you are looking at the difference between wholesaling and retailing, really is the profit margin.

It just made me think twice about the best wholesaler sources and I will certainly do more research to find out where I can get the best prices for the products that I will be selling.