Sellers pricing the order less than their delivery rates
I have been coming across a lot of listings where sellers are pricing their products far below the delivery rate itself, let alone the Cost price of the product, How is it possible? I was thinking that this might be loss leader marketing but it just does not make sense as to why would a seller make 50% or more loss on every order???
An example that I recently saw was -
Item Weight is 10 kg, seller selling it for 189 Rs, Even if it was somehow configured to regional rates, it (Delivery Price) is still ~300 rupees, and this is not including the cost of the product too, How are some sellers doing it? Are they shipping the item for way lower price? is amazon self Ship based on your volume of orders? just how?!! I am very confused!
Sellers pricing the order less than their delivery rates
I have been coming across a lot of listings where sellers are pricing their products far below the delivery rate itself, let alone the Cost price of the product, How is it possible? I was thinking that this might be loss leader marketing but it just does not make sense as to why would a seller make 50% or more loss on every order???
An example that I recently saw was -
Item Weight is 10 kg, seller selling it for 189 Rs, Even if it was somehow configured to regional rates, it (Delivery Price) is still ~300 rupees, and this is not including the cost of the product too, How are some sellers doing it? Are they shipping the item for way lower price? is amazon self Ship based on your volume of orders? just how?!! I am very confused!
9 replies
Seller_w6sYfZLV9pekp
Maybe they are selling their unsold inventory so that they can make some cash out of it rather than keeping it in their warehouse. Sort of like disposing off inventory.
Some sell to generate cash-flow as well
Some sell to get that volume of sales to push them to advanced or premier tier of sales, which will get them benefits on Amazon.
Seller_EEj115XE7Xslg
There are some misconceptions in the minds of the sellers when working out on their margins and setting the selling price. These probably happens when a seller is new into this business or the seller has less knowledge on the charges that they will have to bear.
The ex: which you have given seems to be a genuine case of underpricing since the shipping cost is greater....challenging times indeed.
Seller_V5AW8sDtyHnlx
Those are amzon related companies like etradeonline, cocoblue, appario retail...etc.
