Hi everyone,
As you know I am new in Amazon. I have found some products and now I want to purchase from distributer. My question is: are these product prices fixed or no it will be negotiated? And how much will be the shipment and prep service cost? Before I contact the distributor and purchase items I want to know about these issues.
Thanks
You always want to work that out in advance. All of them will negotiate.
Most of them pretend to be a manufacture and all they are is a broker. Best to avoid them like the plague, only deal with the actual source of the product. Closer to the source the lower the price.
When purchasing products from distributors, the prices can sometimes be negotiated, especially if you’re buying in bulk. It’s worth reaching out to the distributor to discuss pricing and see if there’s any room for negotiation. As for shipment and prep service costs, they can vary depending on the size and weight of the products, as well as the shipping method you choose.
Some distributors automatically give a discount on bulk purchases but cannot be negotiated.
Second, the shipping cost from distributors is mentioned on their website, and some distributors offer free shipping on bulk orders.
Ok and how about prep service? Should I ask about that ?
If I found a product with all positive point but low profit margin, should sell it?
If no price war in listing and minimum roi 20% then you can go , otherwise skip.
All the stuff sold on amazon is like that, if you do find a good selling item it will evaporate fast. Your source in China will start selling it direct by way of proxy sellers to hide where it actually comes from so they can play dumb when you call out their loyalty to you the buyer/contractor. You just opened up the market at your expense and they sponge off of your success.
Hidden costs are going to ruin your business, they are not obvious and the risks associated with selling on ebay and amazon are intentionally omitted to avoid losing a new 3P seller.
Even a high margin item will turn into a loss, why, you don’t sell enough to cover the inherent statistical loss associated with online sales. 100 units sold, for example might have 10% loss, amazon and ebay throttle your sales and that is where the problem lies.
100 sellers and each will sell 1 item, if you have 1 seller selling 100 items you would not have an issue with the 10% loss because you sold enough product to cover the loss. So what about the 10 sellers that get burned, probability of you being one of them is very high. If not this week maybe next week, then you just lost all your profits…
All you can do is try and limit your exposure, then once you get a good handle on what is going on make a few decisions regarding where you are going.
These questions vary from distributor to distributor. You will need to get answers directly from them.