How is this underpricing even possible?!

[MasterP]

Hey guys,
I was looking for tablets and I saw there for instance quad core 9 zoll tablet pcs (very very likely imported from china) to be sold on german ebay.

Now when I look up the same products on alibaba for instance, I find the same for about 40$. This is without importation and shipping costs. 40$ + 15-20$ DHL. Then 19% importing tax for Germany and about 5-6$ shipping costs from German ebay seller to buyer.

Now, how can the ebay seller make money when he sells the product for 40-50€ (with shipping costs included)??!

I cannot understand hwo this is possible

[MM78]

Huge Quantities, buy a Container and I'm sure the price will go down.

[MasterP]

I tried talking to them but they always said like a few dollars would go down, not more..

How much are we talking about (volume-wise to buy + how would the new pricing look like? I unfortunately have no idea how far they would go down and what kind of quantity is needed

[GreenBean]

Originally Posted by MasterP

I tried talking to them but they always said like a few dollars would go down, not more..

How much are we talking about (volume-wise to buy + how would the new pricing look like? I unfortunately have no idea how far they would go down and what kind of quantity is needed

Not until you have managed to create a working relationship with the sellers would you get an answer to that. Will take quite some time. Discounts will only happen if you sell yourself.

[MasterP]

I understand, I don't got fix sellers at the moment, I am trying different ones.

I just have no feel for how much they would go down after buying in bulk + establishing a relationship with them....any rough percentages known to the public?

[yankee]

One item wholesale price is not possible. Start buying 1000 or 10,000 pieces and you will get a real price. My best educated guess, prepaid 2000 pieces would be $16,000

[MasterP]

You mean that the tablet pcs that cost 40$ officially would cost around 8$ each when I get my volume around 2000 pc's?!

I am asking this again because I am recalling receiving PDFs with pricings for 1-10 pc's, 500 pcs, 1000 pcs and the price changes in the PDF were barely noticable..nowhere near this calculation

If I got that correctly -> this blows my mind. I actually got savings from another business where I basically got lucky and made a bit of money, I would be able to spend 10k in dollars but I need to be very careful..

How would I go about discussing and negotiating? Just saying I want to buy 1000 pc's and asking for a whole sale pricing?

Thanks and btw,
thanks to the VIP member who sent me a PM, will look into your link etc ASAP!

[Burger Box Man]

A price is just a number, customer service is key to unlock the answers you seek.

[MasterP]

Originally Posted by Burger Box Man

A price is just a number, customer service is key to unlock the answers you seek.

You basically mean building a relationship with them? I don't know whether I understand..

[Klemantina]

They might try to get rid of the tablets because they afraid the price will drop fast or they got low quality product or they scam people once in a while to gain the losses or they got stolen products cheap or they stole it themselves. I can think of many reasons. The simple one is that their uncle works at the factory that produces the tablets.

[MasterP]

Aside from being a german seller, I also thought that he might be wanting to sell them at a small loss or something...

Or he is getting them at a very cheap price, that guys like me can NEVER beat...

Thats why I was asking how "cheap" prices can normally go when ordered in bulk because I wanna gauge whether I can even keep up with them with being a little bit more expensive than them instead of being twice as expensive, and getting no sales at all.

Btw, I highly appreciate this forum, lots of experienced people here as one can see from the postings here...love it

Greetz

[Klemantina]

Always keep looking for new products to sell, there are opportunities everywhere.

[MasterP]

Originally Posted by Klemantina

Always keep looking for new products to sell, there are opportunities everywhere.

Wasnt even aware that those tablets were outdated (I dont even think they are) - I was just very curious how those insane low pricings were possible...

I am trying and optimizing products, listings and strategies pretty religiously at the moment and learning a TON.

I am learning more about customers, ebay, etc. than dealing with sourcers, whole sale pricings, etc. unfortunately to be honest but I am on it.

Obviously a few guys out there who are undercutting my pricings but not so many, I was discouraged by this one and thought that all wholesalers will be having these prices -> making things nearly impossible for me to sell stuff.

I will be launching another listing in about 12 hours and let it run for three days and see what I can make out of it, this one's going to be really interesting..

[jjohnson777]

Risky ordered tablets in bulk need to sell cheap enough so sell them all before newer version of same one released. I noticed I can even buy tied-dye shirts in bulk. If did not mind wearing same style every day might of done that but I rather spend my $1000 on as many different styles. Good quality ones using high quality cotton not cheap. Once get $10 version know why good ones cost 3-4 times as much. I buy online as hard finding real world store sell good ones not cheap garbage (yet expensive cheap garbage).

[Atom]

There are many reason a competitor can beat you on price.

Is the seller a big seller? Maybe he also get discount on shipping due to volume?
Discount on fees from eBay? Packaging? due to volume?

Or if the seller is actually a China seller maybe using a fulfilment centre in Germany / Europe, then it is a whole new ball game as being Chinese, they can get cheaper than your general public surfing on Alibaba.

[luckoftheirish93]

Originally Posted by Burger Box Man

A price is just a number, customer service is key to unlock the answers you seek.

very relevant and wise burgerboxman

i always talk broken english and tell seller "i big buyer" and then they start to reduce the price, its all about putting up a big show to show that you have loads of money and so want a discount for the privilege of dealing with you basically

[dan_ebay]

Well they won't be paying that 19% import tax for a start lol. Why are you even considering it still? You need to get it for literally less than half the price to make any profit, they won't discount it that much. Bulk discounts aren't as much as people make out, I only get around a 5% extra discount if I spend $20,000 compared to $1,000. They won't give you a much better price when you have a 'relationship' with them either. These companies want to make money, they're competing with 100s of others, obviously they try to provide a competitive price whether they know you or not

[yankee]

Originally Posted by dan_ebay

Well they won't be paying that 19% import tax for a start lol. Why are you even considering it still? You need to get it for literally less than half the price to make any profit, they won't discount it that much. Bulk discounts aren't as much as people make out, I only get around a 5% extra discount if I spend $20,000 compared to $1,000. They won't give you a much better price when you have a 'relationship' with them either. These companies want to make money, they're competing with 100s of others, obviously they try to provide a competitive price whether they know you or not

I believe every industry and factory is unique in this. It is very easy for me to get 80% less than an advertised Alibaba price for a single item. I have not logged onto Alibaba for years, but I am sure business is as usual. Proof of funds letter is always helpful.

[MasterP]

Originally Posted by yankee

I believe every industry and factory is unique in this. It is very easy for me to get 80% less than an advertised Alibaba price for a single item. I have not logged onto Alibaba for years, but I am sure business is as usual. Proof of funds letter is always helpful.

80% less? I got a bit of funds but I have never thought about showing "proof". Lets say how does the proof have to look like? I would love to show them and then discuss with them from a better place

@dan ebay: Why don't they have to pay 19% import taxes? As far as I know you HAVE to pay it (at least when importing into Germany) when your total cost of the shipped item is about more than 50-60$
Or is there a way not to pay that????!

Thanks for the new posts, they are getting really exciting and extremely helpful for me.

Thanks gyus

[dan_ebay]

they undervalue it, nearly all UK ebay/amazon sellers don't pay tax, doubt its any different there

[muzzie]

1) There are lots of sellers who actually dropship, and stating the item is in EU, although it is in China, and placing very long delivery time.
2) Buying lots of one item can change price 2x - 3x. So they buy, say, 1000 of tablets, and sell them all in one month for a bit lower than the market price.
3) in certain shops, some items are always being sold at zero or even at some loss, just to improve shop sellers stats and to attract more customers.

[Lost in the Supermarket]

Originally Posted by MasterP

Hey guys,
I was looking for tablets and I saw there for instance quad core 9 zoll tablet pcs (very very likely imported from china) to be sold on german ebay.

Now when I look up the same products on alibaba for instance, I find the same for about 40$. This is without importation and shipping costs. 40$ + 15-20$ DHL. Then 19% importing tax for Germany and about 5-6$ shipping costs from German ebay seller to buyer.

Now, how can the ebay seller make money when he sells the product for 40-50€ (with shipping costs included)??!

I cannot understand hwo this is possible

Sometimes a profit of $5 twenty times a day is a lot to some people and to others it is not wirth the time and effort.