To anyone who runs an online business

Discussion in 'General Discussion' started by Hoolagrin, Feb 7, 2008.

  1. Hoolagrin

    Hoolagrin Wheelie Rules! TFW2005 Supporter

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    So I was thinking of getting a business license and selling toys on-line. I enjoy selling on ebay, and have over 15 years retail experience.

    I cannot seem to find out what kind of margin to expect from purchasing from a manufacturer or wholesaler. Everyone requires an account before they divulge prices. Anyone out there give me some hints?

    I know Target has about a 35% markup, and I'm sure Walmart is even better, but I was hoping for a 15-20% margin for a small time guy.
     
  2. drippy

    drippy is a freethinker.

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  3. Hoolagrin

    Hoolagrin Wheelie Rules! TFW2005 Supporter

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    So in 2005 the average annual GP vs sales for an electronic shopping / mail order was 39.8 and for Sporting good / hobby (in Target, the Margin is about the same as toys) is 40.1. Either way that is pretty good. Only if you can find a distributor or wholesaler to give you that kind of margin.

    I was thinking if I set up an account with a manufacturer like Hasbro (what kind of minimum orders would they need? Tens, hundreds, thousands of cases?) or a distributor like eedistribution, what kind of margin would they give.

    Manufacturers give discounts based on volume of orders, and distributors will sometimes too, but usually they will let you make smaller purchases with less of a margin.
     

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