Welcome to the WholesaleForum.com! Sign in or Register Free to benefit from our full range of free services

Welcome to Wholesale Forum.comWelcome ToWholesale Forum.comFind wholesale buyerstrade buyers and wholesale offers free

For Buyers

Wholesale Forum is the fastest growing online business community dedicated to retailers, auction sellers, surplus and overstock buyers needing a quick and safe solution for sourcing trade stock. Join our free and friendly forums today and gain knowledge, offer your advice, and discover new partnership opportunities:

For Suppliers

For wholesalers, dropshippers, manufacturers, distributors and trade services providers. Advertise your business today on WholesaleForum.com for free to reach potential trade buyers on a more personal level. Promote your latest offers, interact with buyers in real time, distinguish yourself as an expert in your field, and attract sales instantly.

Sign up now More benefits for Buyers
Sign up now More benefits for Suppliers
Post Reply
Page 1 of 2 1 2 LastLast
    1. Atowngamers is offline

      Join Date
      Oct 2011
      Location
      United States
      United States
      Posts
      6
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #1

      Drop Shipping Video Game products

      First, I would like to thank those that are sharing their knowlege of the industry and their patience when explaining the do's and don'ts of drop shipping

      My question is: I want to get into the video game industry. I want to sell anything that deals with GAMING. I was thinking of starting simple. I want to sell the game controllers. I think that's a cool enough niche to get noticed.

      I can sell the autorized game controller by Sony and Microsoft or sell the aftermarket brands. Can anyone help me

      .
      Over 150,000 Verified Sources + Deals 95% Off MSRP + Free Website!

    2. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      774 Times in 307 Posts
      #2
      Hi Atowngamers,

      Welcome to Wholesale Forum

      The success of a niche is determined by a simple formula. The formula is the ratio between the niche's level of demand divided by the level of competition. To calculate this ratio, first you need to identify the demand and competition level of your niche. You then divide the demand value by the competition value. Here are some examples:

      1. Official Sony game controllers have a demand level of 8 out of 10 (meaning a high demand). Competition is very fierce, due to many factors.

      The first factor is that prices are regulated by Sony through official distribution channels. This leaves little room to maneuver on price, which increases competition.

      Secondly, without meaning any offence, it is a fairly obvious niche to target, which means that many other retailers are likely to target it. Everyone knows that Sony consoles are popular, plus many youngsters who embark into reselling choose game consoles as a starting point (simply because they enjoy gaming). Young age retailers are willing to accept lower profit margins (mainly because they tend to live with their parents, and have lower costs of living). Therefore, the level of competition for Sony official controllers is extremely high, we'd estimate that it's around 9 out of 10.

      When we divide 8 (the level of demand) by 9 (the level of competition), we get a ratio of 0.89. This is a very poor ratio, making this niche extremely undesirable for start ups. It's a niche that is suitable for very high volume, low margin retailers. A start up very rarely benefits from high volumes from the outset.

      2. Compatible Sony game controllers have a lower demand, let's say round 7 out of 10, however competition in this case is lower.

      The reason for lower competition is that compatible products aren't always comparable with other compatible products targeting the same niche. Your skill in this niche is to emphasize the benefits of your compatible product compared to the more expensive official product. Also consider using complementary marketing techniques like bundling.

      Competition in this niche remains still quite high, for example purposes we'd say around 7 out of 10.

      To calculate the success ratio of this niche, we divide 7 by 7, giving a ratio of 1. Still higher than 0.89, but still not that desirable for a start up. You want your ratio to be as high as possible.


      To identify demand and competition level values, and to calculate niche success ratios, you need to have access to market research data. Here is a very useful thread discussing the most useful online market research tools, some of which are free:

      https://www.wholesaleforum.com/discu...arch-tools-67/

      It is also very important that you make use of the best sources of verified wholesalers and drop shippers available on the web. We recommend using eSources and Worldwide Brands. They are the two largest trade directories of verified wholesale suppliers, distributors, manufacturers and drop shippers today. They'll allow you to identify reliable trading partners very quickly, and offer you a constantly updated range of opportunities which will make your start up a long term success.

      Hope this helps
      Want To Be An eBay Powerseller?
      This is the Service You Need.

    3. Atowngamers is offline

      Join Date
      Oct 2011
      Location
      United States
      United States
      Posts
      6
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #3
      Thank you for your repsonse,

      I like the detailed info your provided. I am willing to take that chance because I will probably run my business out of my house and my Garage. You see, I own a gaming competition business and I come across alot of GAMERS that are looking for good deals on equipment.

      My idea was to start selling the some accessories to my GAMERS and gradually increase my popularity from there. I am not trying to make a million dollars, I just want to find out ways to slowly increase sales and become more familiar with dropping shipping and wholesale.

    4. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      774 Times in 307 Posts
      #4
      That's a very good position to be in. The advantage is twofold.

      Firstly you only need to be as competitive as the cheapest retailer known to your customer.

      Secondly, you can afford to show samples, accept pre-orders, order in bulk from wholesalers once you know the volumes you need, and finally carry out live market research. Once you know the type of demand you are working with, you can order in bulk without the need to take pre-orders, and hand the orders to your customers instantly.

    5. Atowngamers is offline

      Join Date
      Oct 2011
      Location
      United States
      United States
      Posts
      6
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #5

      Quote:

      Originally Posted by WholesaleForum View Post
      That's a very good position to be in. The advantage is twofold.

      Firstly you only need to be as competitive as the cheapest retailer known to your customer.

      Secondly, you can afford to show samples, accept pre-orders, order in bulk from wholesalers once you know the volumes you need, and finally carry out live market research. Once you know the type of demand you are working with, you can order in bulk without the need to take pre-orders, and hand the orders to your customers instantly.
      Yes. Yes. I hope I can somehow squeeze my way into this market and make a name for myself. When you say order in bulk, what do you mean exactly? Would that mean in quanities of 500 or more? Or does it depend on if I am getting it from the manufacturer or supplier?

      Do you know of any companies that will dropship controllers to soon to be customers?

    6. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      774 Times in 307 Posts
      #6
      When you say you own a gaming competition business, we assume it's a physical business where gamers meet you in person. Is this a correct assumption?

      When you accept pre-orders, you can take a deposit from your customers and gather enough orders to buy in bulk directly from wholesalers. If some of your customers are reluctant to pay upfront, offer them a guaranteed delivery time or their money back plus a discount on their next order.

      Try to gather pre-orders as quickly as possible, then buy direct from the cheapest wholesale source, and then hand the orders in person to your customers.

      If however you are working online only, you will need to calculate whether it is cheaper for you to have a drop shipper send the orders directly to your customers (in which case delivery should be quicker), or collect pre-orders, order in bulk, and then ship individual orders yourself.

    7. Atowngamers is offline

      Join Date
      Oct 2011
      Location
      United States
      United States
      Posts
      6
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #7

      Quote:

      Originally Posted by WholesaleForum View Post
      When you say you own a gaming competition business, we assume it's a physical business where gamers meet you in person. Is this a correct assumption?

      When you accept pre-orders, you can take a deposit from your customers and gather enough orders to buy in bulk directly from wholesalers. If some of your customers are reluctant to pay upfront, offer them a guaranteed delivery time or their money back plus a discount on their next order.

      Try to gather pre-orders as quickly as possible, then buy direct from the cheapest wholesale source, and then hand the orders in person to your customers.

      If however you are working online only, you will need to calculate whether it is cheaper for you to have a drop shipper send the orders directly to your customers (in which case delivery should be quicker), or collect pre-orders, order in bulk, and then ship individual orders yourself.

      You are very correct. My gaming business is just a competition amoungst gamers. Gamers will pay an entry fee of $30, depending on the level of competition, and the winner gets the prize. Sometimes I have over 100 entries and I have been asked many times about certain types of equipment and if I can get games on discount. I am 40 years old and I remember the social gatherings of the old ARCADE atmosphere, THE GAME ROOM as they called it. I am trying to re-establish that by setting up a CAFE of sorts. I am building a gaming community and I want to be able to offer my gamers discounts and competitive pricing at all times.

      With that, I want to grow and expand my knowledge and my sales. Do you understand my concept? I have no overhead because everything is done from home. My competitions are held at Hotel conference rooms or sometimes I will lease an office space for a weekend. The profits is there. The money is very good but I want to build a GAMING empire.

      I want to be able to offer services that no one can match. I will do whatever. I can drop ship. I can order in bulk and then sell to my gaming community. I can do whatever it takes to succeed

    8. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      774 Times in 307 Posts
      #8
      The concept is excellent, but it needs testing

      The ideal set up is to bring samples along with you, and take pre-orders (including payment of course). You should also have a very good knowledge of the market to allow you to recommend alternatives or custom products, and possibly a catalog showing a broader product range.

      You certainly have an advantage over most gaming retailers, however you need to test your demand to determine what it can bear. For example, you need to figure out whether your gamers are interested in premium products with a high price tag (including custom made products), or whether they are only after gaming necessities (and what price they are willing to bear for those).

      Your advantage lies in the fact that you can show the products in person, and also allow gamers to test the product while playing. This suggests that your customers will spend for accessories that enhance the gaming experience, and will be willing to spend as a function of how far the product enhances the experience.

      Once you make a name for yourself, you will be able to approach major national distributors and even work on a drop shipping arrangement with them. The concept is superb, and in our opinion should be targeted to the higher end of the market, with a focus on the experience and product support.

    9. Atowngamers is offline

      Join Date
      Oct 2011
      Location
      United States
      United States
      Posts
      6
      Thanks
      0
      Thanked
      0 Times in 0 Posts
      #9
      I do agree. It would be such an advantage to introduce new products to enhance gamplay. I do agree.

      My concern is drop shipping. What if I have an order for 1 or 2 contollers or something...Can I get those items drop shipped? Do you know of any off hand?

      I am talking with a TV distributor as we speak. I am trying to get them to sponsor us in every event. We are working on ways to cater to the REAL gamer. Right now my only hurdle is being a household name in Georgia. Once I conquer that, I plan on moving my operations and expanding. Do you think Sony would sponser events like mine?

    10. WholesaleForum's Avatar
      WholesaleForum is offline

      Join Date
      Sep 2009
      Location
      United States
      United States
      Posts
      2,924
      Thanks
      83
      Thanked
      774 Times in 307 Posts
      #10
      Plan ahead

      Use the resources recommended earlier to approach verified gaming accessories drop shippers, there are many that offer very competitive prices and a broad product range. It's all about how you approach them.

      You may not get money from Sony, but you should be able to persuade them to help you partner with one of their official distributors, who may also be willing to drop ship on your behalf once they learn about your concept

Sign Up Now

Got something to say? Sign up now and join the discussions.

Post Reply
Page 1 of 2 1 2 LastLast

Similar Threads

  1. Replies: 3
    Last Post: 10 Jan 2012, 05:56 AM
  2. Video game drop shippers - PS3, PC, Xbox and Wii games drop shipped
    By empresa87 in forum Dropshipping Discussion
    Replies: 1
    Last Post: 16 Feb 2012, 06:14 AM
  3. Replies: 1
    Last Post: 23 Dec 2011, 07:03 AM
  4. Video game drop shippers UK - Drop ship suppliers of PS3, Xbox and Nintendo games
    By Video Game Dropship in forum Dropshipping Discussion
    Replies: 1
    Last Post: 30 Mar 2012, 09:47 PM
  5. Replies: 1
    Last Post: 23 Aug 2011, 08:51 AM
  6. Video Game Drop Shippers in UK - Xbox 360, PS3, PC Games and Consoles
    By kheadley in forum Dropshipping Discussion
    Replies: 1
    Last Post: 27 Mar 2012, 06:28 AM
  7. Replies: 3
    Last Post: 19 Sep 2012, 11:49 AM
  8. Drop Shipping video games imported from Thailand - Country Selling Restrictions
    By antdog132 in forum Legal, Contracts, Insurance & Trade Terms Discussion
    Replies: 1
    Last Post: 19 Jun 2012, 12:35 PM
  9. Replies: 1
    Last Post: 15 Dec 2011, 07:36 AM
  10. Replies: 1
    Last Post: 16 May 2012, 07:45 AM

My Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
All times are GMT -4. The time now is 10:02 AM. - Fixed Width