I'm thinking about selling digital cameras and have a couple of
questions.

1.)How do you become a Sony, Nikon, Olympus,Cannon etc. digital camera
reseller?

2.)What are the margins you have if you want to remain competitive
with other online and offline merchants?

3.)Do you have to buy and stock inventory or can you arrange to have
the item drop-shipped from the factory, warehouse or possibly a
commercial discount reseller?

What I'm looking to validate is if one can sell brand name digital
cameras without having to buy or stock inventory and how one goes
about doing it.

Hello:

I am writing to you because I have myself extensively researched on
the question that you are asking. I think sparky4ca-ga has provided an
excellent explanation but let me add that information and provide you
with a clear idea of your question i.e How can someone sell brand name
digital cameras without having to buy or stock inventory and how one
goes about it?

By defination a reseller is someone who buy products directly from the
manufacturer at a discount price and than sell it to customers at a
profit.

First of all you should register your business with the Federal and
State Governments ( Simply, open a business by any name ) and get the
Slaes Tax ID number. Beleive me its much easier than it seems. I will
provide you with a link on how you can get everything accomplished
step by step, later in our discussion.

You can become an authorized dealer or a reseller for some of the
major companies ( SONY, Olympus ) but it might require you to met
their minimum requirments ( Sometimes it is difficult for a start up
business ). Again, that doesn't mean that all of the major companies
have strict criteria. Check out Cannon Reseller program at
http://www.canonresellers.com.

As sparky4ca-ga explained that the low volumes/order sizes you're
describing
would require you to deal with a distributor instead of the
manufacturer directly. A distributor is someone who buy products from
the manufacturers at steep discounts on wholesale terms and then
distribute it to resellers. Wynit inc. http://www.wynit.com is a prime
example of a distributor which also does drop shipment.sparky4ca-ga
has provided you with some of the names of the major distributors but
i assume that you will want to sell cameras without stocking the
inventory and need more distributors.

The answer to your problem lies in the Drop-Ship directory located at
http://www.mydssd.com. The website contains information about many
large distributors for various products that will drop-ship your
inventory without you having to stock it in a warehouse or your
apartment room. Alyhough you have to subsribe in order to benefit from
the directory but let me assure you that the minimum price is worth it
as i have personally used it. Also, be aware that there are many many
( emphasis on many )sites on the internet that claim to be the
distributor but are not. Therefore, it is important to get an
authentic source of information. ( Drop-Ship Directory is one ).

The website http://www.mydssd.com also provides vital information on
how to start up a reseller business.

Again, if i were you, i will use authentic and large distributors like
Wynit inc. and Ingrammicro, D & H etc to buy products and then let
them send it to the customers. Its easy and without any risk. Now for
the sake of comparison, if you want to compare the ultimate low offers
from the companies for a certain product , one good place to go is
http://www.nextag.com.

Other Useful Resources:
 
Reseller Ratings
http://www.resellerratings.com
Reseller Seminars
http://www.digitalbenchmarks.com/DigitalBenchmarks/Seminars/StoresandResellersSeminars.htm

Useful Search Terms on Google:
" Drop Ship Resources "
" Camera Reseller "

I hope that you find the answer useful. And, don't forget to clarify
if you have someting else in mind. Thank You.

Sincerely,
leader-ga

Every company will have different rules for becoming an authorized
reseller. That may range from something as simple as having a business
license and tax certificates, all the way to a complex certification
process. Sometimes a company won't require you to become authorized,
but you should investigate, of course.

If you are not authorized, many manufacturers will consider you the
end user for warranty purposes.

Margins can range from 2 percent to 10 percent.

Generally speaking, the low volumes/order sizes you're describing
would require you to deal with a distributor instead of the
manufacturer directly. Distributors for digital cameras include Ingram
Micro (www.ingrammicro.com) Tech Data (www.techdata.com) D & H
(www.dandh.com) (might not carry cameras). Usually, the distributors
require a certain annual volume in order to open an account with you.
They usually will drop-ship, but be aware that a lot of digital
cameras would not, on their own, be enough to pass the miniumum order
value, so you'll be looking at a handling fee for each order as well.

Just a few thoughts. (I work at a Canadian reseller)

-sparky4ca-ga