DVDs and Games - Successful Selling Tips
Market - Big Picture
Checking out the market on the whole gives you an idea if you are entering the right industry for a successful, profitable business. Here you will learn about the tips and tricks that will help your business grow.
Start with the hottest trend in the market. As far as DVDs and games are concerned, classics, niche markets are always trending. If you think selling new releases is a good idea, you might want to think again. It is not even possible sometimes, and you will learn why.
Here comes the good news: you can expect very high traffic in this category.
Online Average Selling Price
It is also important to be aware of the average selling price on the most visited platforms. On eBay, for example, the average selling prices are as follows:
- DVDs = $5 to $7
- Games = $20
Keep the prices competitive to enter and stay in the market.
Level of Competition
And here comes the bad news: the competition level is also very high. Along with the traffic, the competition is high too making it challenging for new wholesalers. Currently, DVD and Game listings on eBay alone are over 500 000.
In case you have a website, it can fare a better deal for you.
Since entertainment – DVDs and Games – are more of a volume-based business, you can only expect a few dollars per product.
Online Sell-Through Rate
The sell through rates online are:
- DVDs = approx 40 percent
- Games = approx 70 percent
Who is this Market Suitable for?
This market is suitable for anyone with a good know-how of a particular niche – such as cooking DVDs or music DVDs. Other than that, anyone with a little interest in the category can do great in the industry following the right tips and tricks.
The Downsides of Selling DVDs and Games
There are downsides associated with every type of industry. However, when it comes to selling DVDs and Games, here are some serious pitfalls that you need to watch out for. Take it as a warning so you know what might come your way. Check out the list below:
Expecting Big Margins
As mentioned above, this market is totally volume oriented and thus expecting big margins may not work for you. There will be times when your DVDs will sell for as low as $0.01. But then, there will also be others that will sell for as high as $23.
Expecting big or feeling discouraged after not getting the expected is where the game will change for you. Patience is what will work for you in this industry.
Pirated and Bootleg Copies
You need to be especially very careful about the pirated and bootleg copies. Don't expect the fake ones to have spelling mistakes and funny Chinese characters on the top. It can sometimes be very difficult to differentiate between a real DVD from a pirated one.
These days, pirated and bootleg DVDs are extremely polished. You can't judge by simply looking at it. You need to make sure by taking into account certain factors. These factors are listed below:
- Low Price: It is important to note that not all DVDs available in low price will be a pirated or bootleg copy. However, this factor is important to take into consideration. If your seller is offering you DVDs at a lot cheaper price than what others are offering, it's doubtful. Don't forget to compare the prices to judge. Such DVDs are probably fake and should be checked until you are fully satisfied.
- The Region - If your seller says that the DVDs are 'All Region', 'Region Free', or 'Region O', chances are that the vendor is dealing in bootleg copies. Such status does not come with DVDs. This "Region Free" is only official to public domain (which does not contain any copyrights to the title) or for DVDs that are released by very small independent studios. Other than that, all well-known and big studio labels – including Sony, MGM, Lions Gate, Universal, Disney etc) will come with region specification. There are no exceptions in this case thus you need to be very careful with such details.
- Supplier Location – Not all suppliers in Hong Kong and Taiwan will offer you fake products, but if that's the location of your supplier, you should be extra careful. These locations automatically increase the risk factor. Pay attention to the location details and avoid such risky locations.
- No Extra Features – Fake copies of DVDs are often missing the extras and special features that the real copies might offer. So don't forget to compare.
Expecting to Purchase New Releases on Low Wholesale Prices
Many new sellers believe that it is possible to find new releases for as low as $5. This is a myth and should not be followed by any supplier. The matter of truth is that studio distributors are the only sources where you can get the new releases and you can get nothing more than 5% discount off the retail price. Nothing bigger than that!
All of these factors are important and should be taken into account. If a transaction fits into more than one of these factors mentioned above, better avoid it.
Looking for the Right DVD Supplier? What Factors to Consider
In order to find the right deals, it is important that you find the right supplier. The following are some factors you should look for in a reliable DVD supplier:
- Offering Only Official Releases: If a supplier is offering "unofficial release" or "Region 0" DVDs, it is clear that they are fakes and you should steer clear from such suppliers.
- Big Discounts on Bulk Orders: Since the industry is volume based, it is quite practical to give huge discounts on bulk orders. If your supplier is offering you that and you are satisfied with the authenticity, go ahead and seal the deal.
- Your Supplier Offers You Drop Shipping Service: For some suppliers, this could be a useful factor. This would work if you are not sure about selling a lesser-known title and therefore you don't plan to stock it. This service will improve your inventory that you do not necessarily have to stock up physically. This keeps the risk low.
How to Decide Whether to Choose Games or DVDs
It is best to create a balance. If you are focusing more on DVDs thinking that there isn't a huge market for games, you are wrong. In fact, the younger generation of buyers is more inclined towards buying video games. This market sector of buyers is highly tech-savvy and devotes both money and time to help flourish this market. Therefore, once you are able to find a customer, it is very easy to deal with them in the future as well. This way, it is easier to make repeat buyers in this category more.
Create a balance and find audiences for both the sectors and see your business bloom.
Tips on Marketing Recommendations – What's the Right Way to Sell DVDs Successfully
Want to know the right way to sell DVDs and Games successfully? Check out the tips below!
- Pay Attention to Marketing: For this volume-based business, it is important that you attract a lot of traffic to get good sales. Focusing on marketing will help you build a brand to attract more customers. Moreover, marketing is the most effective way to ensure bringing more and more customers to your business and creating a long-term professional relationship with them.
- Look for Market Niches: Specializing in a certain field is always a good idea. It makes you stand out as an expert for that particular area. This is what will happen here when you choose to specialize in selling for a particular niche. For instance, you might want to specialize in selling musicals, titles that are hard to find, how tos, gardening, grooming skills, cooking, Manga, British TV, Comedy, mysteries, murder, art films, etc. Choosing a niche also helps you charge higher prices for DVDs, since now people will look for you for the type of DVD they want. Selecting a niche and running it successfully will help you reach higher prices in no time.
- Increase Your Shipping Margins: Whether it is the new customers or existing one, a slight increase in your shopping cost will not make a huge difference. In fact, your existing customers who purchase from you on a more regular basis will not even notice the increase. However, don't make a drastic increase. Increasing to $0.50 to $1 on your cost is insignificant for your customers but can make a difference to your overall margins. In fact, even a 0.20 extra on shopping over your actual cost can add to your overall profit.
- Keep up with Customer Service: Customer satisfaction should be your number 1 priority. It is important to keep up with your customers' services to build a long-term relationshi0p with them. In addition to multiple purchases on a regular basis, satisfied customers also give you good reviews and feedback, which eventually benefits the whole business. Last but not the least, fast shipping also comes under great customers' services so make sure you offer that too.
Follow these simple yet effective tips and increase your sales in no time.
Hot Tip for Boosting Your Profits
After sales, increasing your profits for a bigger margin is probably your next goal. But what do I do to achieve that. Here's the little secret that will help you boost your profit. This requires dedication and effort but this is one hot tip that you don't want to miss out for sure!
Grab the new releases from Wal-Mark right on the day of release. Make sure you reach there early in the morning and get at least 50-60 copies of the hot new releases. Reselling these hot new releases can easily help you make thousands of dollars in a year. What you need to make sure is that you only get the hot new releases from Wal-Mart. There's only market for the big blockbusters and does not give the same response for B grade releases. So make a list and put your hands on the really hot new releases.
Once you have around 50-60 copies of the hot titles, you can go home and immediately list them on eBay. Start with offering 1-3 DVDs in an hour (depending on how many you have got). Also, don't stick to a single pricing strategy. Depending on the response you are getting, you can adjust the number of DVDs you are listing per hour as well as use different pricing strategies to make it as profitable for you as possible. For the first one, you can start with 99 cents and then use that opportunity to take it to the 'Buy It Now' auctions for higher prices.
If everything goes smoothly, you can make around $5 profit per copy. Your closing time for each auction should be different from each other. You don't want to keep a very constant approach with this or you will lose the higher bids and bigger opportunities.
Another hot tip is to ensure you offer fast shipping worldwide as well. There are regions where you can expect to get maximum of your big for the hot new release from. One of the main reasons is that fans in some countries often have to wait for a couple of days more before they can get their hands on the DVD they have been desperately waiting for. Due to the difference in the release dates, it is very common for people to look for such deals in USA.
Following this, you can even make up to $500 in a day buying hot new releases and offering them to customers in USA as well as internationally. You don't really have to care about high shipping cost. People who are buying DVDs are often willing to pay higher shipping cost. All they really care about is getting their hands on the DVDs as quickly as possible. Therefore, you should offer them the fastest shipping service. For instance, First Class Mail is one of your options, which is not only reliable but one of the very few services that deliver very quickly. This factor is very important when people are buying DVDs of hot new releases from different parts of the world.
In short, instead of saving a few bucks on shipping services that can delay the delivery, look for the fastest delivery service and satisfy your clients. This might also help you earn positive feedback.
Want to know other reason why this might work successfully for you in boosting your profits instantly? Wal-Mart's release day prices are actually lower than the wholesale prices. This could be hard to believe, but Wal-Mart loses 230 million on releasing new DVD movies per annum. As far as the wholesale cost is concerned, the average on these movies falls somewhere between $18 and $25. Even though the figures are hard to digest, we have cross checked this with various distributors and these are the average wholesale prices they quoted for a minimum order of $35,000.
There are also opportunities for making profits on the shipping cost. Therefore, it is easier to make up to $450 in a single day. For some people, that could total up to the car payment for a month.
Successful Selling Tips
These tips will not only help you sell successfully, but will also help you establish your overall business. Check these out and see how these benefit you in taking your business to the next level.
Pay Attention to Your Reputation
Buyers are not very comfortable in purchasing DVDs online, mainly due to the risks that come with it. Buyers are skeptical about online sellers and don't want to end up buying fakes or bootleg copies. Therefore, it is very important to win over your customers before they comfortably purchase from you. For that, you need to focus on your reputation and do everything to build it up. Build a strong reputation by winning over buyers trust and offering them only real, official release products.
Half of the work will be done when your satisfied customers will write genuine feedback and positive reviews for you. For the remaining half, make sure you include detailed description for each title. For instance, it is important to state whether the product is official or not, new/used, etc.
Operate through Your Website or eBay Store
Improve your professional image for your buyers. This is also a part of reputation. Do everything that makes you look more professional – including operating your own website for your products and even opening an eBay store. Having an eBay store to accompany your listings is a great way to encourage long-term relationship with your buyers and repeat business.
It improves your professionalism, has a positive impact on your reputation and makes you look like an expert in the industry. Your buyers will not be skeptical about purchasing from you.
Introduce Yourself to Customers
If you don't have a website, make sure you include an 'About Me' page on eBay. Your buyers have the right to know who they are dealing with. Introduce yourself and your business to gain more trust. In addition to a detailed introduction, make sure you also list clear policies to your potential buyers for smooth future transactions.
Are You Listing at the Optimal Time?
For eBay sellers, it is important to make sure they are listing the products at the optimal time. Listing on Friday after and late hours is not an optimal time, and therefore it is not recommended for eBay sellers. The most successful timeslot for eBay users is Tuesday through Thursday after 3pm.
Work during the Busy Seasons for Better Opportunities
Busy seasons are the best ones to find better opportunities for making more money. Christmas is an excellent season for boosting the sales of your DVDs and Games business. Similarly, summer is another great time to find these opportunities so focus on selling larger quantities.
Right Platform for Selling DVDs and Games
What are the best platforms to sell DVDs and Games? The following are the most successful places where you can make the most out selling DVDs and video games.
Your Own Website
There's no better option for making a profitable business out of selling DVDs and video games on your own platform – your website. If you have a website, this is the best place where you can expect highest profit margins by selling your items. If you follow a niche market – as mentioned earlier – you can easily up your game by improving your search engine ranking.
Make the most out of your own website and market yourself as the industry expert and most authentic and reliable source for getting real DVDs and video games.
Flea markets are preferred options by sellers because this platform offers higher profit margins as compared to eBay. The only problem you can face here the lack of traffic as compared to eBay. However, you can enjoy higher margins and even great sales on some nice days.
There are a number of auction websites that you must not ignore. In fact, the top names such as Craig's list, Addoway, and Bonanza are worth trying.
Amazon is a great platform but comes with its own challenges. High level of competition is what you can expect to face here. There are a lot of other sellers that you will be competing with, but at the same time Amazon also offers slightly higher prices as compared to eBay. Moreover, it is one of the most preferable platforms for people to look for video games and movies that are hard to find.
With the right set of strategies, you can do wonders here.
Last but not the least, eBay is another platform to introduce and market your business. However, even eBay comes with its own challenges and even though most of our tips are based on eBay, it is actually a challenging platform to sell games and DVDs online. However, the main reason why sellers love this place so much is due to the amount of traffic present on the platform all the time.
For new sellers looking for exposure, traffic can be the biggest benefit. However, if you are more profit-oriented, this may not be the ideal platform for you. If you are planning to use eBay, make sure you are ready to spend most of your time attracting more traffic and gaining as many buyers as possible for regular repeat transactions.
Check out the list of authentic, validated sellers on FinalWholesale.com and find the best prices without the risk of fakes and bootleg copies of DVDs and video games.