Selling at a loss
it seem like amazon are encouraging items to be sold at a loss as they will only promote items that do i buy stock direct from manufacturer but find them for sale at even below this price with free postage and that does not take into account vat and amazom subscription and fees which total about 35% of the selling price how do they do it i thought amazon would support independent businesses but it seems it only cares about its own profits
9 replies
Seller_7VbclcPFFRTnc
Do you mean amazon are selling the item themselves at a lower price than you ?
If so, they are more than likely paying less for the stock than you, have no seller fees and lower postage costs
Seller_esvgLzKXw2YAl
Sorry, but why would you think that Amazon would sell at a higher price, simply because your an independent seller?
They have bigger buying power and as they also run the distribution network, access to cheaper prices for delivery.
The simple answer, is to not compete directly with Amazon.
You can also sell at a higher price than them and you will still get some sales.
The buy box rotates, even when Amazon have the lions share of it.
Seller_PY6qN1rPPfY0J
If you are trying to sell widely-available stock items from your shop on Amazon for a profit, it probably isn’t going to work. Sorry but that is the harsh reality of it. The margins you have to work with cannot compete with Amazon because your buying power simply doesn’t match theirs. They are probably buying a ton of product at very cheap prices. In reality, you should probably be aiming your frustration at the manufacturer rather than Amazon because they are in effect letting you and other independent retailers down by allowing Amazon to buy at a price that stuffs up your business.
I know it is frustrating - running bricks & mortar shops has become harder and harder over the years due to exactly this type of scenario. Up to a few years ago, suppliers would bend over backwards to protect and support their retail customers but that’s changed. Many now seem resigned to the fact online selling is the way everything is going and I’ve noticed they either sell directly themselves (usually under a seperate company name to try and cover their tracks) or as here, in bulk to Amazon or major online retailers, for a fast and easy profit.
If you’ve not done so, I would contact the manufacturer and ask them some straight questions regarding margins and how it is that Amazon can sell at such a cheap price. My guess is they will give you a ‘fudge’ answer and say they can’t discuss the supply to other clients. That effectively would tell you all you need to know.
