MOQ – “Minimum Order Quantity”

June 10th, 2009


The third wholesale term you should know is: MOQ.  Typically the Confidential Dealer Price List has a column headed: MOQ, “Minimum Order Quantity”.   When you place orders, the MOQ determines the smallest quantity of the item you can order at a time.  The MOQ is different for different items.   Typically, the larger, pricier products have a smaller MOQ than the less pricey and smaller products.   This also determines the smallest quantity at which the wholesaler can make a profit on an item.  Remember that wholesaling is a volume business.  Because profit margins are thin, wholesalers only make money by selling in large quantities.

Click to review more of Chris Malta’s “Wholesale Tips”

MSRP – “Manufacturer’s Suggested Retail Price”

June 6th, 2009

The second wholesale term to understand is MSRP.

Once  you set up an account with  a real wholesale supplier, you will receive a Dealer Price List from them.   This is a confidential price list.   The column headed:  “MSRP” refers to the Manufacturer’s Suggested Retail Price.  This is the price that the manufacturer suggests you sell the product for.   The MSRP is intended to help you set price levels.  The MSRP is not mandatory.  Within reason, you can modify your price to compete with other sellers in your niche. 

Don’t make the mistake of being the lowest price seller.  You will start a price war where everyone ends up with no profit margin left.  This way nobody wins.  If your Dealer Price List does provide the MSRP, ask your supplier for a MSRP List.  The MSRP can be used as a quick method to see which products offer you better profit margins.

Click to review more of Chris Malta’s “Wholesale Tips”

MAP – “Manufacturer’s Advertised Price”

June 3rd, 2009

It helps when you talk with your wholesale suppliers, to talk in their own language.  Online sellers should know the common terms that REAL Wholesalers use.  This absolutely helps in building good business relationships with them.  Wholesalers have their own industry terms and jargon. As a retailer, it’s good for you to be able to talk with them in their own language. This avoids misunderstandings.  Also, you won’t have to stop them and ask that they explain what they mean.  They’ll treat you more seriously if they sense that you understand their business.

In this next set of tips, we will explore a few of the most common terms you’ll encounter when talking to your wholesalers. While many online retailers have heard these terms, most don’t really know what they mean or even how they influence their selling.

MAP – “Manufacturer’s Advertised Price”

Let’s begin with: “MAP” or “Manufacturer’s Advertised Price”. When a wholesaler requires you use MAP pricing, they are instructing you NOT to sell their products on eBay (or anywhere else!) for LESS than the MAP price.

There’s a very good reason why Suppliers enforce the MAP.  The MAP sets the market’s perception of the value of their products in the marketplace. Price cutting on eBay or other selling platforms by online sellers trying to out-do each other, devalues consumers’ perception of the product and brand.  When this happens, the large brick-and-mortar stores, with overhead costs higher than eBay sellers, stop selling the product because they cannot afford to sell it for those prices and still make a profit margin.

The wholesaler’s biggest volumes come from those large brick-and-mortar stores. If they stop carrying the wholesaler’s products, the wholesaler’s sales volumes slump and they can no longer justify selling the product. The small online sellers eventually loose out because they can no longer source the products. They have in fact, shot themselves in the foot.

The MAP is a protective measure to retain the product’s market value. This protects everyone in the product supply chain.

Click to review more of Chris Malta’s “Wholesale Tips”

12% of eBiz Owners succeed. 88% fail. Why?

June 2nd, 2009

The reason for this is SO important that I’m
inviting you to participate in a Free Webinar.

Click Here to Register for the FREE Webinar
this Thursday night at 9 PM EST

Colette Marshall and I will be answering your questions
and explaining the critical difference between those
who succeed and those who fail.

BE THERE, or be, well…88%

Just in case you cannot be there,

If you’re trying to earn a living online, you are finding
out that it is not as easy as you thought it would be.
That is because there is something critical missing from
your business.

I have earned millions of dollars online over the last
10 years. I can tell you for an absolute fact that
personal, face-to-face NETWORKING with other successful
business owners IS THE ONE THING that makes the difference
between those 88% who fail, and the 12% who SUCCEED.

No program, DVD set, or business in a box program can do
this for you. Everyone’s path to success is different,
and it takes someone who has been there to show you how
to find your own road.

I’ve just finished 6 weekends of private, in-person
closed-door Workshops with eBiz Owners JUST LIKE YOU.
Some of them had been working at it for a while, and
some were just getting started. ALL of them came out
of those Workshops ready to tackle anything, with solid
direction to travel their own successful paths.

It’s happening again, and you can’t afford to miss it.
For a short time, I’m opening up Registration for the
next 4 Chris Malta’s Face To Face EBiz Workshops.

I can only take 15 people per weekend, no more. If you want
to make real money online, Learn More Now while you still
have time to get in!

Join the 12%. We’re here waiting for you. :o)

Chris Malta

Drop Shipping: For Beginners, low cost and low risk.

May 30th, 2009

Drop Shipping is now a well known term with people selling online.   For Beginners, Drop Shipping provides a low cost and low risk solution.  A Beginner in online retailing, typically doesn’t have a lot of money to purchase inventory.  Drop Shipping provides a wholesale option that allows beginners to start selling without a lot of start up expense or risk.  

For some wholesale suppliers, Drop Shipping is an added service.  Most wholesalers are not set up for single item product sales.  It’s not easy to find a REAL wholesale drop shipper.  There are many websites that say they are drop shippers but so many – especially those advertising in the search engines – are some form of wholesale scam

Once you locate a REAL wholesale drop shipper, you will be asked to follow a process like this: 

  1. You apply for and set up an account with the drop shipper. 
  2. The drop shipper sends you product pictures and descriptions that you can use on your retail site. 
  3. A retail customer buys one of the products you have listed.
  4. You email the drop shipper and place an order for the item.
  5. The drop shipper sends the item from THEIR warehouse to YOUR customer using YOUR name and label.
  6. Your customer has already paid you the retail price.
  7. Now you pay the wholesale price to the drop shipper once they ship the product. 
  8. Without touching the item, you make a profit on the sale.

Becareful not to view drop shipping as a magic bullet.  Each time you drop ship products, you will pay a higher wholesale price than when you buy those same products in volume.  Because wholesaling is a volume business, the wholesale price you’ll pay on one item is higher than the wholesale price you’ll pay on an item in a bulk lot.  Typically, the wholesaler maintains separate warehouse space for drop ship inventory, and must pay their employees to go  into the warehouse and pick, pack and ship each individual product for you.  The drop shipper pays for shipping materials and special tracking software.  They have a number of incremental costs to be able to provide this service for you.   Your drop shipping costs will reflect that. 

Drop shipping is an excellent entry point to start selling online.  It is also a low-risk method for testing new products without having to purchase inventory that might not sell.   It’s wise to use drop shipping to identify products that sell well into your customer base.  The profits you make from your drop ship sales can be used to start buying the better-selling products in bulk.  This way you increase your profit margins, and your business grows faster. This is  how most successful online retailers get started.  It should work for you too!

Click to review more of Chris Malta’s “Wholesale Tips”

@TishaRogers Challenges @ColetteMarshall to a #TwitterDuel (UPDATED – Someone sings this weekend)

May 28th, 2009

Ladies and Gentleman, Come One ! Come All!

Tisha Rogers , Director of Operations for Worldwide Brands, has just officially challenged Colette Marshall, President of Worldwide Brands, to  a Twitter Duel.

The competition:   Who can get the most followers by July 4th !

The winner gets to have bragging rights while the loser has to flaunt their singing skills on July 4th by singing the National Anthem in front of a crowd of people. And Yes, It’s going on the Worldwide Brands YouTube Channel!

The Contenders:

In this corner, we have Tisha Rogers with her masterful supplier research skills, twitter knowledge, and operations powers. She’s coming armed with wholesale tips, product ideas, and dropshippers galore. 



And in the other corner, we have Colette Marshall with her SEO knowledge, internet marketing skills, and product sourcing prowess. She’s coming armed with seo tips, niche market research ideas, and wholesale secrets.  (A Quick Note from Colette: Check out video of Tisha Rogers Singing – Follow Me because you really want to hear her sing the National Anthem – She’s amazing)

How to Vote  for the one you want to hear sing.

If you want to hear Tisha sing (or see her make a fool of herself) then Follow Colette on Twitter at  (check out this sneak peak of Tisha singing)

If you want to hear Colette sing (or Dance a Jig) then Follow Tisha on Twitter at

or you can follow us both.   (If we tie, we may just have to have a singing duel to decide the winner)

 Starting Count  (as of May 28, 2009):

@TishaRogers – followers:  934

@ColetteMarshall – followers:  921

Updated Count  (as of June 2, 2009):

@TishaRogers – followers:  1069

@ColetteMarshall – followers:  1081

Updated Count  (as of June 19, 2009):     

@TishaRogers – followers:  1311

@ColetteMarshall – followers:  1291


Updated Count  (as of July 1, 2009):  ONLY 3 DAYS TO GO     

@TishaRogers – followers:  1418
@ColetteMarshall – followers:  1454

Wholesalers with Retail Stores?

May 24th, 2009

There are some wholesalers who sell to consumers through their own Retail stores – and that’s okay.

Many online retailers get upset when they discover that their wholesaler has a retail store.   We all fear competition – especially from one’s own supplier.  The  supplier can undercut prices.  However, wholesalers cannot afford to harm their retailers’ business.  They are dependent on having many retailers selling their inventory.   Typically a wholesaler who has a retail store will sell their products to their retailers at prices about 30% less than the wholesaler will offer the products for sale directly to consumers.   A wholesaler’s mission is to sell their products AT wholesale prices.  Selling, to the disadvantage of their retailers, is effectively killing their wholesale business. 

Real wholesalers typically don’t advertise in the search engines. So those you find through search engines may be middlemen and not real wholesalers.  If you find a wholesaler in the search engines, that claims to be a wholesaler but has a retail site of their own, you have probably discovered a wholesale scam.

Don’t get disgruntled if your Wholesaler has a Retail site.  Find real wholesalers through a trusted source.  If that wholesaler also has a retail site, there is typically no need for concern.  It is not in your wholesaler’s best interest to undercut you or even put you out of business.  Generally they will offer you prices at least discounted 30% below their own retail prices.  You should be able to compete with them.

Click to review more of Chris Malta’s “Wholesale Tips”

Can You Calculate Your Profit Margin?

May 20th, 2009

It’s important for you to know how to calculate your profit margin.  Many online sellers ask me about the profit margin they should negotiate from a wholesale supplier.   That’s always difficult to answer.  An acceptable profit margin is not a fixed percentage.  Many factors interplay:  the product, the market, the demand, and many other factors.  

Your purchase volume impacts your profit margin.  It’s not realistic to expect to earn a 100% profit on every product, just because you are buying them at wholesale prices.  It may work for a few products for in big retail chain stores; but even for them, 100% profit margin is not the norm.  Most online sellers have a relatively small business; and that’s not a problem, your up against the lower wholesale prices the big chain stores can secure.   You just can’t expect to make a standard profit across the board on all your products.  

Hard-and-fast rules?  There are none.  When it comes to online retail profit margins, there are a few guidelines about what you should expect to earn.  GENERALLY, you shouldn’t sell products where you can’t earn a minimum 15% profit.  Most online retailers are happy if they can earn a 30 to 40% profit. 

Calculating your profit margin is not just a case of subtracting your wholesale cost from your retail price.  For example, buying products for $5-each and then selling them for $10-each, plus shipping and handling costs, does not yield you a 50% profit margin.  Your profit margin is your retail price less your total Cost of Goods Sold (know as COGS).  Your Cogs includes all the costs incurred in selling a product – the advertising costs, hosting costs for your website, or the listing fees for your auction, etc.  

If you carefully understand your true profit margins, you’ll be better at choosing the right products to sell in your business.  Avoid tring  to achieve an absolute value for your profit margins; they will vary from product to product.   You must calculate the TOTAL cost of selling all your products, so you can determine what your REAL profit margins are per item.  Anything not included will decrease your profit per item!

Click to review more of Chris Malta’s “Wholesale Tips”

Volume Buying Lowers Wholesale Prices

May 15th, 2009

Beginner online sellers soon discover that volume buying will lower a wholesale price.  Many online sellers don’t understand why wholesalers offer a lower price for an item when one orders more frequently and in large quantities.  Many small eCommerce sellers complain when competitors’ sell at lower retail prices than the wholesale prices they can buy at.  It’s a understandable frustration.  Almost always, the reason is because, their competitor is bigger and buys in larger quantities than they do.   The competitor is getting better price breaks. 

When buying from a wholesaler,  your price per unit will go down as you increase your order size.  For example:  from 1 to 100 units of a product per purchase, the wholesale price per unit might be $5 each.  When you buy from 101 to 250 units of a product, the unit price might come down to $4 each.  Wholesalers only make profits when they sell in volume because they make such thin profits per unit.   The more you buy per order, the better the price per item they can allow you. 

The online retailers who can afford purchasing in bulk get lower prices.  They can afford to price lower to their retail customer and still make a profit.  Don’t be too concerned!  Although many online sellers think they have to slash prices to compete, it doesn’t have to be so.  There’s more to selling than having the lowest price on offer.  Buyers will spend more with retailers that offer value-for-money.  Successful selling depends on building a customer’s trust and providing something of value that’s worth the higher price. 

You may begin by drop shipping or even buying in small quantities.  As soon as you find products that sell quicker than others, start placing larger orders and negotiate for better Volume Price Breaks.  This way you will grow your online business out of your own cash flow.

Click to review more of Chris Malta’s “Wholesale Tips”