Why are Amazon massively undecutting me?
I have been selling a particular product quite successfully on Amazon for a few months. I was the only seller of this item, so had no competition, but I sell at a fair price (around the RRP) and offer Prime shipping and free standard shipping. Then a few days ago, Amazon (Not FBA, actual Amazon) have appeared on my listing selling the same product. They are undercutting me by such a huge amount that there is no way I can now make a profit. If I sold at the same price, I would be selling at a loss.
What I do not understand is why they are doing this? Surely, they must be making such a slim profit that my Amazon fees would have constituted more of a profit to them? To put it in perspective, the item costs £21 wholesale after tax. Amazon are selling the item at £25.84! It should be around £41 (the RRP). So you can see that after shipping and Amazon fees, I would suffer a significant loss on each sale. The worst of it is, I have have just taken delivery of a shipment of these which I will now not be able to sell.
Surely this can’t be right? I don’t mind the usual competition driving prices down a bit, but this is ridiculous. I know there is probably no answer to this, but has it happened to anyone else? And can anyone explain why they are doing it?
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
0 replies
Seller_esvgLzKXw2YAl
Because they can?
Because they buy considerably cheaper than you?
Because they own the market?
Because they dominate the market?
Lot’s of reason, pick one of your own choice…
Seller_BS5lg2keRs2QO
Do you know what quantity they have? They could just be selling some of your stock that they’d previously lost?
Seller_JB8wPCk9zkyad
Amazon’s business model has always appeared to be to use their very deep pockets to establish monopolies and put competition out of business, even if it costs them money to do so, because long term they can eventually profit from the activity.
To negate the competition, to put them out of business, to acquire them … to grow until their is nowhere else.
It is widely reported that Amazon use marketplace sellers and data and confidential information, or demanding information regarding who your supplier is, to determine what lines to stock, and where to source them.
Why ?
It is what they do.
Wasn’t there that fable about the crocodile and the frog ?
If you sell something on Amazon they can sell themselves, I’m afraid this is how it works.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_ciCPlj8jygtdi
Thanks. I am a relatively new Amazon seller, so this is some reassurance. I’ve actually completely removed my listing now and am waiting to see what happens.
Seller_KKcTTZzy6Jd6Q
One thing that does happen occasionally is that Amazon will jump onto your listing at a lower price than you and will proceed to drop-ship your FBA stock (only FBA, not MFN) at a considerably lower price than you… and if you do the maths and run the weird logic they can make money doing so.
lets say for example that you sell an item for £10, on each sale you pay £1.50 selling fees.
Amazon can purchase this at £10, sell it for around £7 and still make profit, the income from your selling fees means they can still make money selling at £8.51, however they can also put an expense of £10 against their tax bill, which they have then sold at a £1.50 loss, reducing the amount of tax they pay even further (assuming they have good accountants, lol).
Ultimately it’s possible that they’re buying the stock off of you in order to sell it cheaper, if this IS the case then it’s a win-win, lower price = more sales, but you get the full amount you usually sell at.
Seller_YhVpuyNJnTnUw
amazon probably buy at a far cheaper price, the item might be sold with another product that they sell on a regular basis.
Seller_6sxtIS0RbZ5k7
Don’t forget that they don’t have seller or storage fees to pay to themselves either.
Seller_NoLYurmb006tq
Yep and no metrics to follow if they get lots of bad feedback lol
There was something I heard on the radio last week were some government are trying to take Amazon to task over been able to sell and regulate there own sales.
Seller_l78koE9kGCu59
Sorry, but ’ their sandbox - their toys’ answers all of your questions. It’s not the nicest one but unfortunately the only truthful one.
Why are Amazon massively undecutting me?
I have been selling a particular product quite successfully on Amazon for a few months. I was the only seller of this item, so had no competition, but I sell at a fair price (around the RRP) and offer Prime shipping and free standard shipping. Then a few days ago, Amazon (Not FBA, actual Amazon) have appeared on my listing selling the same product. They are undercutting me by such a huge amount that there is no way I can now make a profit. If I sold at the same price, I would be selling at a loss.
What I do not understand is why they are doing this? Surely, they must be making such a slim profit that my Amazon fees would have constituted more of a profit to them? To put it in perspective, the item costs £21 wholesale after tax. Amazon are selling the item at £25.84! It should be around £41 (the RRP). So you can see that after shipping and Amazon fees, I would suffer a significant loss on each sale. The worst of it is, I have have just taken delivery of a shipment of these which I will now not be able to sell.
Surely this can’t be right? I don’t mind the usual competition driving prices down a bit, but this is ridiculous. I know there is probably no answer to this, but has it happened to anyone else? And can anyone explain why they are doing it?
Why are Amazon massively undecutting me?
I have been selling a particular product quite successfully on Amazon for a few months. I was the only seller of this item, so had no competition, but I sell at a fair price (around the RRP) and offer Prime shipping and free standard shipping. Then a few days ago, Amazon (Not FBA, actual Amazon) have appeared on my listing selling the same product. They are undercutting me by such a huge amount that there is no way I can now make a profit. If I sold at the same price, I would be selling at a loss.
What I do not understand is why they are doing this? Surely, they must be making such a slim profit that my Amazon fees would have constituted more of a profit to them? To put it in perspective, the item costs £21 wholesale after tax. Amazon are selling the item at £25.84! It should be around £41 (the RRP). So you can see that after shipping and Amazon fees, I would suffer a significant loss on each sale. The worst of it is, I have have just taken delivery of a shipment of these which I will now not be able to sell.
Surely this can’t be right? I don’t mind the usual competition driving prices down a bit, but this is ridiculous. I know there is probably no answer to this, but has it happened to anyone else? And can anyone explain why they are doing it?
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
0 replies
0 replies
Seller_esvgLzKXw2YAl
Because they can?
Because they buy considerably cheaper than you?
Because they own the market?
Because they dominate the market?
Lot’s of reason, pick one of your own choice…
Seller_BS5lg2keRs2QO
Do you know what quantity they have? They could just be selling some of your stock that they’d previously lost?
Seller_JB8wPCk9zkyad
Amazon’s business model has always appeared to be to use their very deep pockets to establish monopolies and put competition out of business, even if it costs them money to do so, because long term they can eventually profit from the activity.
To negate the competition, to put them out of business, to acquire them … to grow until their is nowhere else.
It is widely reported that Amazon use marketplace sellers and data and confidential information, or demanding information regarding who your supplier is, to determine what lines to stock, and where to source them.
Why ?
It is what they do.
Wasn’t there that fable about the crocodile and the frog ?
If you sell something on Amazon they can sell themselves, I’m afraid this is how it works.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_ciCPlj8jygtdi
Thanks. I am a relatively new Amazon seller, so this is some reassurance. I’ve actually completely removed my listing now and am waiting to see what happens.
Seller_KKcTTZzy6Jd6Q
One thing that does happen occasionally is that Amazon will jump onto your listing at a lower price than you and will proceed to drop-ship your FBA stock (only FBA, not MFN) at a considerably lower price than you… and if you do the maths and run the weird logic they can make money doing so.
lets say for example that you sell an item for £10, on each sale you pay £1.50 selling fees.
Amazon can purchase this at £10, sell it for around £7 and still make profit, the income from your selling fees means they can still make money selling at £8.51, however they can also put an expense of £10 against their tax bill, which they have then sold at a £1.50 loss, reducing the amount of tax they pay even further (assuming they have good accountants, lol).
Ultimately it’s possible that they’re buying the stock off of you in order to sell it cheaper, if this IS the case then it’s a win-win, lower price = more sales, but you get the full amount you usually sell at.
Seller_YhVpuyNJnTnUw
amazon probably buy at a far cheaper price, the item might be sold with another product that they sell on a regular basis.
Seller_6sxtIS0RbZ5k7
Don’t forget that they don’t have seller or storage fees to pay to themselves either.
Seller_NoLYurmb006tq
Yep and no metrics to follow if they get lots of bad feedback lol
There was something I heard on the radio last week were some government are trying to take Amazon to task over been able to sell and regulate there own sales.
Seller_l78koE9kGCu59
Sorry, but ’ their sandbox - their toys’ answers all of your questions. It’s not the nicest one but unfortunately the only truthful one.
Seller_esvgLzKXw2YAl
Because they can?
Because they buy considerably cheaper than you?
Because they own the market?
Because they dominate the market?
Lot’s of reason, pick one of your own choice…
Seller_esvgLzKXw2YAl
Because they can?
Because they buy considerably cheaper than you?
Because they own the market?
Because they dominate the market?
Lot’s of reason, pick one of your own choice…
Seller_BS5lg2keRs2QO
Do you know what quantity they have? They could just be selling some of your stock that they’d previously lost?
Seller_BS5lg2keRs2QO
Do you know what quantity they have? They could just be selling some of your stock that they’d previously lost?
Seller_JB8wPCk9zkyad
Amazon’s business model has always appeared to be to use their very deep pockets to establish monopolies and put competition out of business, even if it costs them money to do so, because long term they can eventually profit from the activity.
To negate the competition, to put them out of business, to acquire them … to grow until their is nowhere else.
It is widely reported that Amazon use marketplace sellers and data and confidential information, or demanding information regarding who your supplier is, to determine what lines to stock, and where to source them.
Why ?
It is what they do.
Wasn’t there that fable about the crocodile and the frog ?
If you sell something on Amazon they can sell themselves, I’m afraid this is how it works.
Seller_JB8wPCk9zkyad
Amazon’s business model has always appeared to be to use their very deep pockets to establish monopolies and put competition out of business, even if it costs them money to do so, because long term they can eventually profit from the activity.
To negate the competition, to put them out of business, to acquire them … to grow until their is nowhere else.
It is widely reported that Amazon use marketplace sellers and data and confidential information, or demanding information regarding who your supplier is, to determine what lines to stock, and where to source them.
Why ?
It is what they do.
Wasn’t there that fable about the crocodile and the frog ?
If you sell something on Amazon they can sell themselves, I’m afraid this is how it works.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_3yhYGU61cigbH
I’ve seen them sell at considerably less than they actually bought for. They want to drive prices down so drop their price in hope you follow suit, likely they don’t have much stock so lower a little and hang fire. I sell a product where the supplier is the only place to get it in the UK. Amazon buys said product from them too, they sell at between 10 to 20 quid loss hoping I’ll drive my price down which I won’t. My supplier has stopped selling to Amazon as there is too much hassle involved so I now have the buy box, I have Amazons customers contacting me asking where the boots they bought in February are, I have to explain to them that they bought them from Amazon and not me, they then want to know why mine are more expensive so I tell them the same story and let them know if they want some I have stock, but at the proper price.
Seller_ciCPlj8jygtdi
Thanks. I am a relatively new Amazon seller, so this is some reassurance. I’ve actually completely removed my listing now and am waiting to see what happens.
Seller_ciCPlj8jygtdi
Thanks. I am a relatively new Amazon seller, so this is some reassurance. I’ve actually completely removed my listing now and am waiting to see what happens.
Seller_KKcTTZzy6Jd6Q
One thing that does happen occasionally is that Amazon will jump onto your listing at a lower price than you and will proceed to drop-ship your FBA stock (only FBA, not MFN) at a considerably lower price than you… and if you do the maths and run the weird logic they can make money doing so.
lets say for example that you sell an item for £10, on each sale you pay £1.50 selling fees.
Amazon can purchase this at £10, sell it for around £7 and still make profit, the income from your selling fees means they can still make money selling at £8.51, however they can also put an expense of £10 against their tax bill, which they have then sold at a £1.50 loss, reducing the amount of tax they pay even further (assuming they have good accountants, lol).
Ultimately it’s possible that they’re buying the stock off of you in order to sell it cheaper, if this IS the case then it’s a win-win, lower price = more sales, but you get the full amount you usually sell at.
Seller_KKcTTZzy6Jd6Q
One thing that does happen occasionally is that Amazon will jump onto your listing at a lower price than you and will proceed to drop-ship your FBA stock (only FBA, not MFN) at a considerably lower price than you… and if you do the maths and run the weird logic they can make money doing so.
lets say for example that you sell an item for £10, on each sale you pay £1.50 selling fees.
Amazon can purchase this at £10, sell it for around £7 and still make profit, the income from your selling fees means they can still make money selling at £8.51, however they can also put an expense of £10 against their tax bill, which they have then sold at a £1.50 loss, reducing the amount of tax they pay even further (assuming they have good accountants, lol).
Ultimately it’s possible that they’re buying the stock off of you in order to sell it cheaper, if this IS the case then it’s a win-win, lower price = more sales, but you get the full amount you usually sell at.
Seller_YhVpuyNJnTnUw
amazon probably buy at a far cheaper price, the item might be sold with another product that they sell on a regular basis.
Seller_YhVpuyNJnTnUw
amazon probably buy at a far cheaper price, the item might be sold with another product that they sell on a regular basis.
Seller_6sxtIS0RbZ5k7
Don’t forget that they don’t have seller or storage fees to pay to themselves either.
Seller_6sxtIS0RbZ5k7
Don’t forget that they don’t have seller or storage fees to pay to themselves either.
Seller_NoLYurmb006tq
Yep and no metrics to follow if they get lots of bad feedback lol
There was something I heard on the radio last week were some government are trying to take Amazon to task over been able to sell and regulate there own sales.
Seller_NoLYurmb006tq
Yep and no metrics to follow if they get lots of bad feedback lol
There was something I heard on the radio last week were some government are trying to take Amazon to task over been able to sell and regulate there own sales.
Seller_l78koE9kGCu59
Sorry, but ’ their sandbox - their toys’ answers all of your questions. It’s not the nicest one but unfortunately the only truthful one.
Seller_l78koE9kGCu59
Sorry, but ’ their sandbox - their toys’ answers all of your questions. It’s not the nicest one but unfortunately the only truthful one.
