If you are a DVD seller, you have probably wondered why it is so hard to make a profit from a new release DVD. You have a huge directory of DVD wholesalers, and you just can't find a good price. You keep digging and you think that somewhere further in the ground you will find your pot of gold with new release DVDs. I like to think of myself as a pro with selling DVDs, and even I will admit that I was quite shocked by the wholesale price of new releases. When I first began, I noticed there were so many sellers on Ebay that were selling new releases at very low prices. My first reaction was to keep looking for that "secret dvd supplier" that so many dvd sellers are searching for. THE FACT IS THAT NEW RELEASE DVDs ARE EXPENSIVE So I did months of research on new release titles. What I found was that these titles are high demand and low profit. I searched the top Ebay DVD sellers and I found that these guys didn't sell new releases. I discovered that they didn't sell new releases because there is simply too much competition and there is NO profit. Here are two reasons why a new release DVD has little or no return on investment: 1. Unless you have millions to invest, you have to buy a new release from one of three large DVD wholesalers located in the United States. You as an independent have no choice but to use a middle man. Big retail stores like Wal-Mart get their DVDs directly from the studio. Typically, these huge box store will advertise new release dvds at cost. They simply use them as a loss leader to get buyers in their store. They know if you come in to buy a new release, chances are you will buy other items they will make a profit from. This is why you will find Wal-Mart will sometimes have new releases cheaper than we can buy them from one of the dvd wholesalers. 2. Bootleggers are the number two reason why it is so hard to sell new releases. What they do is illegal, but they can sell a new release complete with cover art to the consumer for less than $5 dollars. The fact of the matter is that you cannot compete with someone who can sell a new release DVD for less than $5. They also get the movies out to the public before the DVD is even officially released. Bootlegging is illegal, and there is no way that you can compete with a new release DVD that is made for $1.50. YOU MIGHT WONDER HOW SOME EBAY SELLERS CAN SELL THEIR NEW RELEASES FOR SO CHEAP 1. What some sellers will do is purchase a new release at Wal-Mart and in turn sell it on Ebay. I personally don't recommend doing that. I personally avoid selling new releases altogether. In my opinion, it is a waste of both time and money. 2. Some sellers are selling so many DVD's per month that they will take a loss and sell new releases at cost as a bait to get customers to look at their other items. (Just like the big retail chains mentioned earlier.) 3. In my own opinion a lot of the new releases that you find on Ebay are nothing more than counterfeits. If the DVD description uses words like DVD-5, import, or doesn't include case then there is a big chance that this DVD is a counterfeit. DON'T WASTE YOUR TIME ON NEW RELEASE DVDS In my directory will see suppliers that offer new releases. Keep in mind that these are the same suppliers that supply dvd rental stores. A new release is available for your purchase if you really want to sell them, but take my advice and avoid them altogether. Try focusing on selling DVD titles that are big sellers and offer a great profit.
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