Dealing with foreign competitors on Amazon

[ploughman]

Greetings one and all. Anyone else here selling an item on Amazon where they're facing price competition from halfway around the world? I know it happens quite a bit with electronics from Hong Kong, but I'm not in that category and am in a low-tech line where there's now overlap on some of my inventory with 3 or 4 sellers in Asia.

They're not undercutting pricing by much, and because they're having to do shipping at a loss it's really eating into the small profit margin, but of course their labor costs are very low.

I'm not surprised by this at all because it already happened on eBay, though with one key difference: Amazon does not appear to be adequately disclosing where their items are being shipped from. They will give delivery estimates 3-5 weeks into the future, but other than that - and unlike eBay - they're not saying "Shipped from (country)" anywhere that I can see, and the sellers aren't disclosing it, either. One guy is even claiming "shipping by ___ Post and DHL" when there's no DHL on $4.49 shipping (they just handle a few more-expensive items by contract for that postal service).

Because of Amazon's negligence I've been going to lengths to try to differentiate, using a separate listing set with graphics with a "USA seller" tagline, putting that it's shipped from USA in the title, and basically having to risk getting slapped down on rules just to communicate something I think Amazon should be making more clear. All the competitors have noticeably lower feedback, with most complaints due to slow shipping, items not arriving or damage. They'll do re-work to try to mitigate feedback (get as much bad stuff removed as they can), and might get a percentage just high enough not to get suspended for non-performance.

I've seen a few other U.S. sellers in the general area also having to do odd things, like changing a username to "ploughman (U.S. SELLER)"

I DON'T want to get into a price war with these guys, and am hoping to get a bump over Christmas season when people really pay attention to shipping times. My average is less than a week, expedited is offered, and I get a few sales as birthday gifts or other things where time is important. Total price is about $2 higher, and I use better packaging, which has been VERY important for avoiding damage and having higher feedback.

But the way I understand it, I can't let my listings fall too far in the search rankings or people won't see them. In a few cases I'm getting concerned.

Sorry for rambling. Any tips from others who've faced this kind of situation on Amazon?

[rsot]

competition comes in many forms - analyze their model - see what works and how you can compete effectively.

Every type of product has its special niche to understand and work with - if you cant compete with him/her/they - you will be eaten alive as time goes on. Deal with the shift - all the best

[jjohnson777]

Most bigger ones state ship from in description. I try pick ones from states around me. But if says 4-6 week delivery dead giveway it from China.

Normally I only buy prime eligible for free 2 day delivery.

[GreenBean]

Know your enemy

First rule of life

First rule of e commerce

Analyse your competitors

Experiment

Have patience

Good luck

[jeffweico]

You are on the right track here. Not that I recommend violating Amazon's rules. But differentiating yourself is smart. Competing on price, in many categories, with sellers from other countries is impossible. Just TRY and sell that HDMI cable cheaper than the seller from China! It can't be done, their costs are simply lower than yours. But, unless they invent a transporter beam, shipping times will always be an issue for them.

As a buyer, I am always looking for the best deal. My experience has taught me that the best deal is NOT ALWAYS the cheapest deal! Quality matters and so does timeliness. I have a natural inclination to buy from US sellers. Especially if I believe the item quality is better, or if I need the item quickly. So, unless there is a major price difference, I usually stick with buying right here in the USA.

I'm sure that Amazon will figure out something in the future. They are all about the buyer experience and when they get enough complaints about slow shipping, they will do something to fix it. Listing the item location and shipping times would seem like the most likely solution.

[ploughman]

Originally Posted by jeffweico

I'm sure that Amazon will figure out something in the future. They are all about the buyer experience and when they get enough complaints about slow shipping, they will do something to fix it. Listing the item location and shipping times would seem like the most likely solution.

I wish they would, as it would save me from having to be so pointed and risking getting sanctioned on rules. If they enforced rules to the letter I s'pose they could go after me for the "USA seller" caption and either me or them for everyone not listing on the same detail page.

They do tend to give much longer shipping estimates for the foreign country, which helps me around Christmas. But people might be unhappy if one of my items takes 4-5 days, where they're happy if the foreign competitor's item arrives in 20 days rather than 25.

Over on eBay I dealt with largely the same bunch since 2007. It cuts into volume and can drag down prices a bit, but I've found enough people will pay $2 to $3 more on a $7-10 item (that's hard to ship undamaged) if it's from the U.S. I was concerned at first but by now it looks like they've thrown everything at it and have plateaued.

[rsot]

Originally Posted by jjohnson777

Most bigger ones state ship from in description. I try pick ones from states around me. But if says 4-6 week delivery dead giveway it from China.

Normally I only buy prime eligible for free 2 day delivery.

A wise buyer - many buyers dont even look at this aspect of the shipping delay...then complain.

[ploughman]

Shipping is the big universal pain for the line of business, as it's very labor-intensive and needs special packaging. Kinda like shipping glass unicorns and going to great pains to not have the horn snap off. No one I know of in the area offers free shipping because the real shipping cost (postage + supplies, never mind labor) is too high a % relative to the item value to just absorb. Competitors have seemingly experimented with various price points.

I also get the FBA solicitations, but because some items have a potential VERO angle (maybe 1 hit a year on average, very low frequency), I don't want some gumshoe at the warehouse trying to impress bosses by raising concerns.

[rsot]

Originally Posted by ploughman

I also get the FBA solicitations, but because some items have a potential VERO angle (maybe 1 hit a year on average, very low frequency), I don't want some gumshoe at the warehouse trying to impress bosses by raising concerns.

You don't want those items going into FBA for sure...Az will block you for even a HINT of a suspicion