Understanding MSRP When Purchasing Inventory from Wholesalers - by Worldwide Brands

By Chris Malta, Founder and CEO of Worldwide Brands

Wholesale Tips Series - How to find wholesalers, doing business with a wholesaler, what to expect when purchasing from wholesalers and more.

Tip #12

eBay sellers interested in sourcing inventory from a wholesaler or currently doing so, need to understand the wholesale term: MSRP - ”Manufacturer's Suggested Retail Price.”

Once an eBay Seller sets up an account with a real wholesaler, they will receive a Confidential Dealer Price List from the wholesale supplier. The Confidential Price List typically has prices in columns. If there is a column headed: "MSRP," this term refers to the Manufacturer's Suggested Retail Price. The manufacturer is suggesting the level of price you would do best to sell the product at. The MSRP is a suggestion for where you can set your price levels. The online retailer does not HAVE to sell at the MSRP. eBay Sellers can modify their prices up or down to compete. It all depends on what value the eBay Seller will provide.

Why be the lowest price seller? Dropping prices just starts price wars that erode profit margins. Nobody wins this way. If you do not find an MSRP on the Price List, ask your wholesaler for an MSRP List. The MSRP is often a guideline as to which products on the Price List offer you better profit margins than others.

Worldwide Brands is an eBay Certified Solution Provider, providing product sourcing access and information for eBay sellers. They are the publishers of an extensive directory of legitimate, fully-verified ecommerce wholesalers and manufacturers.