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Wholesale DVDs: Sourcing Secrets and Suppliers -->
Posted by SaleHoo
DVDs have long been a popular seller for online traders and recently, with the economy in tatters, people have been staying in more and more and it seems that DVDs are the world’s preferred time-killer, not to mention money saver. If you can get four people on the couch watching a movie at home for $10, you are much better off that if you pay $12 per head at the cinema!
5 Good Reasons to Sell DVDS:
They are easy to store, and even a big bulk lot can fit in your home – you won’t need to pay for a storage unit.
They are easy to ship and are so small that you can do a big bulk load without having to hire a shipping container or a truck, meaning you will get a better price from your supplier.
They are a low-involvement item. This means that buyers don’t have to think too hard about whether they need it, like it, or whether it will suit them like they would if buying something like clothing or shoes, which means you will sell more of them.
They are cheap and low-risk to send out to buyers so you will have less damaged returns and hassles dealing with shipping insurance claims.
There are plenty of DVD niches – more on this later!
Hot Tip: DVDs without cases are much, much cheaper to ship than ones with cases (often less than half the cost) so if you can, find a local supplier of cheap DVD cases and have your DVD supplier send out the discs and cover sleeves, then make them up yourself as you sell them.
Important Things to Know About Sourcing Wholesale DVDs
You will be operating on very low profit margins.
Expect to make no more than a few dollars max per DVD – you will need to sell in high volumes to really make a profit. Increase your profits by offering multi-buy discounts, combined shipping and by increasing your shipping costs a little. This will help to boost your profits, but only if you increase it by a small amount which still keeps you competitive with other DVD sellers. Work on the JND (just noticeable difference) principle, also known as the differential threshold. This theory tells us that consumers will only notice a difference in price or quantity when it is over 20%. Have you ever walked into a store with a 15% discount? I don’t think so, however, if the discount was 20%, you’d be much more likely to shop there. Did you notice when Coca Cola cans were reduced in quantity? Unlikely. This is because product owners know how much they can cut the quantity down by before too many people will notice.
You can use the JND principal to your advantage by increasing your shipping costs by up to 20%. For example, if the cost of shipping is $2.40, you could increase this cost by 20% ($0.48c) and charge $2.88 for shipping. This example works well because it still keeps the cost under $3 which some buyers might be out off by, and also because $2.88 is a specific price (as opposed to $2.50) and is more believable to buyers who will assume you are giving them the best price possible.
While $0.48c might not seem like a lot, it is certainly worth it when you will be selling 100+ DVDs per week (which you should be aiming to work up to) as you will be adding an extra $48 to your profits!