Some suppliers are selling on Amazon for CHEAPER!

Full Member
sicah
Posts: 2
Joined: 16 Jun 16
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21 Jun 16 12:22:08 am
I joined about a week ago and I have gone through the list of suppliers, their wholesale prices, and what is offered on Amazon and Ebay exhaustively.

I have looked at over 2000 catalogues. I have not found a single wholesaler in this directory that has cheaper prices than those being offered on retail sites.

Also, I have noticed quite a few (Hundreds actually) that are listing their own products for LESS than the wholesale prices in their catalogues for Drop Shippers! Are they purposely undercutting the drop shippers they partnered with so they can out sell their own competition?

The ones that are doing it the most are the ones that ask for yearly fees or "Account upgrades" to drop ship with them or buy from them!

So, the only ones making money are the "wholesalers". They take your money by having you join their membership programs so you can sell for them, you do all the advertising, then they swoop into the same markets and undercut your sale!

This seems pretty scummy to me.

Has anyone had any luck with this at all? So far it seems like a scam. Pay to get a member directory, pay to join a wholesaler, pay for a website, pay for a sellers account, pay for a tax ID, pay pay pay, Then you finally get a chance to list and the very company you are listing for swoops in with a cheaper than wholesale price, and you loose the sale. Not to mention all the time it took to list for them.

Can anyone prove me wrong? OR point me to a company not scamming their drop shippers?


Last edited by fudjj on 21 Jun 16 01:16:12 am, edited 1 time in total.
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fudjj
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21 Jun 16 12:54:24 am
Hi Sica and welcome to the forum,

The first thing I need to clarify for you is the difference between dropshippers and wholesalers, they are two compelely different things. A dropshipper has a set product price, no matter how many units you purchase. Now that said, some may offer bonus schemes for customers who sell X amount and so on, so that is just the general rule.

Wholesalers base their prices on volume, not on invidual unit prices like dropshippers. For example, if you purchase 100 units, you get X price, if you purchase 200 units, then you get a discounted price and so on. Every wholesaler has their own purcahsing structure, but it's no good just looking at their website to find prices, you need to speak with them to find out that structure and that will then give you your per item price.

No, there is absolutely no doubt that some suppliers also use platforms like eBay and Amazon as dircet sales channels, so you do have to watch out for it. I'll post this link for you to read through, it will actually explain a lot about prices you will find on eBay and Amazon.

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Cheers


Mark (fudjj)

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SaleHoo.com

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Site Admin
fudjj
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21 Jun 16 01:41:03 am
I'll also include this link to give you an idea on how you can still compete with cheap prices. You may find this helpful in developing a marketing strategy.

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Mark (fudjj)

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Full Member
sicah
Posts: 2
Joined: 16 Jun 16
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21 Jun 16 11:15:06 pm
Thank you for your feedback. I am just having a very hard time finding any supplier that does not practice undercutting.

Site Admin
fudjj
Posts: 5906
Joined: 27 Jul 07
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22 Jun 16 02:36:58 am
Hi Sica,

Yes, it can be a challange, ethics in this business are set extremely low and seem to get lower each year. It's the rapidly changing face of ecommerce unfortuntaley, we all have to find ways to negate it and carve out our own little market space.

Cheers


Mark (fudjj)

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Full Member
louisamcneill
Posts: 3
Joined: 03 Jul 16
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5 Jul 16 08:28:01 am
Can someone tell how on earth anyone would profit, using the suppliers of Bangood & Bigbuys and why they are listed on this site, they are not really suppliers every single one of their listings is already cheaper on ebay, I made a mistake yesterday, before checking the market, I wanted some Argirline products to list on my ebay site, and purchased 30 bottles, at a cost of around £3.80, then found the same product for £1.11 on ebay eeek's cancelled order, but I had to badger them into sending me a cancellation email as proof, and this morning I had an email, saying 14 days to refund credit card - very long time if you ask me.... This is the same on bigbuys - lots of good stock but high priced, I cannot work out how the drop shippers make any monies after ebay & paypal fee's surely it would be a loss ?..
For years I made good money on ebay, but I think the days have maybe gone due to, as I have read on the forum, the wholesalers are advertising direct and undercutting the independent sellers.
Ok moan over but if anyone knows of a supplier of beauty products where there is a margin for a small profit, Please point me in that direction.

Site Admin
fudjj
Posts: 5906
Joined: 27 Jul 07
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5 Jul 16 09:24:56 pm
Hello Sica and welcome to the forum,

As you've stated above, the online market is crazy hard to get into and extablish yourself within these days, not an easy task at all like it used to be years ago. If you're going to be using platforms like eBay and Amazon, then you really have to start thinking outside of the square for options that can give you a competitive edge, especially if you're dealing with online suppliers the exact same as 90% of the other sellers you're competing against in your market.

I see from your post that you've been doing some reading through the forum, but I wonder if you have gone through this post yet?

Link hidden: Login to view

This might be something that you will find usefull for you to at least test market for a while, see if you can get some popular combinations going and start building a customer base.

Cheers


Mark (fudjj)

Community Manager
SaleHoo.com

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Directory Approved Supplier
_randsgateway
Posts: 14
Joined: 29 Jun 16
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8 Jul 16 02:19:29 pm
Hello Sica,
I'm new to Salehoo.com as well, but I would like to introduce myself and the company I started. My name is Michael Tekin and I'm the Co-founder of Link hidden: Login to view which is a Swedish-based B2B ecommerce site for luxury designer clothing and accessories. I might of missed it but I couldn't see what sorts of products you were looking for. If it is within the highend designer category I would be more than willing to help you, since alot of our clients are making good business on Ebay, Amazon etc.

Thank You

Kind Regards
Michael Tekin


Brandsgateway.com - Exclusive B2B Fashion Flatform For Luxury Brands
Email: support@brandsgateway.com
Office: +46(0)36100129
Cell: +46(0)737711698
Skype: Brandsgateway.com

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