Resellers charging less than manufacturers

4 replies
Hi all,

I've been promoting some Amazon items and I am noticing a curious phenomenon. Some products are available both directly from the manufacturer, and also from resellers on Amazon. Yet, the price from the resellers is less than the manufacturer. For example, the price of one item is $209 on the manufacturers' website, and $109 from a reseller on Amazon.

I thought that resellers traditionally profit by purchasing wholesale from the manufacturer, then marking up the product. Can anyone explain this?
#charging #manufacturers #resellers
  • Profile picture of the author myob
    It is common practice for manufacturers to sell their products retail at their MSRP and not to compete with their established outlets, especially if they have a large base of wholesalers. The quantities that Amazon can move gives them clout in volume purchasing.
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    • Profile picture of the author Bronwyn and Keith
      Hi myob

      Yes you are right.

      The good thing for us online marketers is that not everybody shops that way or knows that the wholesale option is available.

      Regards

      Bronwyn and Keith
      Originally Posted by myob View Post

      It is common practice for manufacturers to sell their products retail at their MSRP especially if they have a large base of wholesalers. The quantities that Amazon can move gives them clout in volume purchasing.
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  • Profile picture of the author Amir Luis
    Another things is.... Amazon and eBay... if ebay still exists...

    They are buyers markets. So to compete you really have to buy right. A lot of manufacturers do wholesale pricing in a retail setting on these websites.

    Why?

    As previously stated, high volume in sales.

    I remember back in the day when eBay was a good way to make money. You still can... it's just that eBay eats in to your profits so much with their fees and other B.S. that it makes it hard to justify the expense.

    For wholesalers though... it is a great place to turn a coin. You don't make your money when you sell something. You make your money when you buy it.
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  • Profile picture of the author Aimee D'souza
    I heard a many times that amazon buys all the products before sell to anyone else . Amazon have the different working process than ebay or another resellers.
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