Image from Engadgets

While this new and interesting PMP by Acelabs was worth a feature on Engadgets, I wondered if this product could be worth selling online. So, I ran a search for Acelabs products on eBay and found no results returned for my search terms. Next, I Googled Acelabs and found no company information on the first page of search results. Obviously, the first link listed was the review by Engadgets.

In my experience in searching for products to sell online, I’ve come to the conclusion that only branded electronic products are worth promoting on eBay or even other shopping sites (at least in the beginning). There are several obvious reasons for this:

• Brands are recognized

A branded product comes with recognition of standard features, quality testing and for some people, status. That’s why iPhone sold 1 million units in a matter of 74 weeks. Of course, the creativity of this product also helps to add value.

In the case of online shopping, shoppers often don’t purchase a product that they know nothing much about. They would probably search for it at their local retail store, get a feel of the product and its features, and decide if it’s a good fit. If it does, they’d want to then read several online reviews, or ask friends who have bought the product. Finally, once they have decided on the specific model, they then shop for the lowest bargain online.

• Warranty (or some level of quality assurance)

You know, to a certain extent that a branded product comes with some level of quality assurance or warranty.

• High demand for brands

Most people will want to search for popular brands online. This means that there is already a strong pool of customers ready to buy this product. You won’t have to do much in promoting a brand. All that matters in the end is your price, and your seller reputation.

• Now, how about a no-brand product?

The problem with new electronic product brands is the market is that not everyone knows about it. While being on Engadget does land Acelabs some publicity, demand for it would not skyrocket immediately.

A great deal of publicity and promotion needs to be done by Acelabs, so that more people will know about it. Online user reviews would be great, and Acelabs would probably need to conduct nationwide road shows, while spending a hefty sum on advertising. Later on, Acelabs may also release an improved product to replace this PMP. The bottom line is: Brand building takes time. At the end of the day, it may even not take off.

• What does this mean to online sellers?

In the business of online selling, two things are crucial: Demand and Cost. Thus, if online sellers take on a new no-brand and unknown product, they are essentially taking on a business risk (unless of course, if their inventory is fully returnable and refundable).

Inventory turnover is high in the online world, and products sitting too long in the warehouse would no sooner need to be auctioned off at low prices. Waiting for a demand to peak for a new brand may take a longer time than expected. Would this be a risk worth taking?

In the end, it is still safer for online sellers to source for branded and recognized products when it comes to electronic items. Unless they have strong feeling that a product is going to take off, or if are just selling small quantities to test the market, selling “no brands” would not be worth risk.