How Can I Make Money with New Release Dvds?

By: Brent Crouch


The wholesale price of a new release DVD is what makes a majority of sellers purchase every DVD wholesale list they can. For the most part, they are already using the largest DVD wholesaler there is, but they have convinced themselves that there is a top secret wholesaler out there that will get them an even better price on a new release dvd.

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.

A NEW RELEASE DVD SELLS AT A PREMIUM PRICE EVEN WITH A WHOLESALER

I researched for months and found that new release DVDs were nothing but high demand products with no or very little profit available. If you will search Ebay's top three DVD sellers, you will see that they do not offer new releases. Why you ask? The answer is simple. With new releases there is simply too much competition. This drives down the price and leaves little or no profit for the dvd reseller.

There are several important reasons why an item as popular as a new release dvd would yield no profit to a dvd seller.

1. Unless you have a million dollars to invest and can buy a truckload of DVDs you will have to go through one of the three main new release DVD suppliers in the United States. Big retail chains like Wal-Mart and Target purchase their new releases straight from the studio and they get huge discounts for bulk orders, therefore they cut out the middleman.

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.

HOW EXACTLY DO SOME EBAY SELLER SELL A NEW RELEASE 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 of the big sellers may be using them as loss leaders like Wal-mart. If you were selling 10,000 dvds a month you were making money from, you could afford to sell 100 - 200 new releases at cost.

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.

SO DON'T WASTE YOUR TIME ON NEW RELEASE DVDs

The large suppliers in my directory will offer you new release dvds. These are the same distributors that supply new releases to all the dvd rental stores. So they are available if you are set on selling them. However, I would encourage you to focus on picking profitable titles you can use to start and grow your dvd business.


Brent is the owner of Jillian Entertainment. He has spent the last 3 years teaching others how he built a 1 million dollar business buying dvds wholesale and reselling them for profit.