What is retail price?


fudjj
Site Admin
  • Posts: 6294
  • Joined: 27 Jul 07
  • Karma:
4 Feb 15 11:09:35 pm
We often see new members questioning some suppliers price being retail

Of course, what most people are doing is comparing that supplier's price with an eBay price (mostly dropshipping price as well). First and foremost, eBay is a wholesale marketplace, the prices there reflect wholesale or below in many cases, they do not reflect true retail price.

WHY?
Because many sellers there are buying in large volume and selling at very tight margins to compete, hence pushing the sales price extremely close to high volume wholesale purchasing price.

You also have wholesalers themselves using eBay as a market place to shift stock at true high volume wholesale price

One of the most misunderstood reasons is loss-leading
Loss leaders are products being deliberately sold at cost or below cost to get exposure and gain market share.

So you have to take a step back and be careful when comparing a suppliers price with an eBay price without knowing how much that seller actually paid for the product themselves, because there are many different strategies at play with eBay sellers and without knowing all the facts, you end up comparing oranges with lemons and completely misunderstanding the market place and how it is priced.


Mark (fudjj)

Community Manager
SaleHoo.com

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