Question
What is your input on these kind of sellers?
sells items at or below cost or just a couple of dollars above cost., charges $8.99 for 2oz first class mail. Lists 7-10 days listings 10 per item in a time.
Has 200 items in his store
User has 101 feedbacks and 96% positives.
Well, for me, I'm just not willing to play the who is cheaper / cheapest game.
Just not a healthy business for me. I just hope that he won't be getting good money to keep this up for too long.
But at the same time, it is hurting me and other sellers a little bit. No wonder our item % sales decreased.
so:__________________________
1. How do you deal with them?
2. what's your attitude towards this kind of seller?
3. What's your experience with these type of sellers?
4. Can those type of sellers actually make a living with just a small profit margin and small sale amount?
Well, let's hear it.
Answer
I don't know how some people make it on the obviously tiny margin (even with the shipping trick). It either has to be HUGE volume (which you'd think would almost require employees) or it's just a hobby/pocket money.
As a buyer, I have gotten VERY leary of any seller under 99% feedback. I know that sounds bizarre. But in a recent buying period, I noticed all the sellers I had trouble with had feedback below 99%. My current working theory is that you have to piss a LOT of buyers off to have enough willing to leave neg feedback to drop below 99%.
The shipping trick I won't bother to comment on since we've discussed that half to death and obviously all have different feelings about it.
Maryanne
Answer
Mary, no it doesn't sound strange at all. I always check when a user has less htan 99.2% even. This guy is at 96%.
But people are still buying from him and no, he isn't selling in huge volume at all. He sells like 1 or 3 items a day but lists huge.
But then again... the question is, how to deal with them so you don't hurt too much and do they actually make "enough" money?
Answer
JMHO,
1. How do you deal with them?
Don't buy from them, BBL them so they aren't messing with your auctions perhaps. Don't interfere in their business nor contact their customers.
2. what's your attitude towards this kind of seller?
Negative and disappointed that they don't get the concept that sellers are supposed to at least make a profit so that their business earns income.
3. What's your experience with these type of sellers?
I've had some undercut my item prices by a few cents or dollars. Those I retaliated by reducing my starting price just below theirs. I would not have list my same widget as theirs at the same time if I saw them listing one. But yet there are copy cats out there who will with impunity not only list the same items thus driving everyone's auction prices down, they will list at the same time and undercut. Sure, some may think that is just capitalism. Well, we'll see what you think when it happens to you.
4. Can those type of sellers actually make a living with just a small profit margin and small sale amount?
Some sellers are not in it to make a business out of the sales nor are they interested in a long term profit. They are closing out goods, or they are selling off items from home that they otherwise would have thrown away, or they bought out a bankrupt retailer and have pennies on the dollar invested in the merchandise and thus don't care if the $5 item sells for $0.50. There are those who are 3 levels down the food chain from a foreign exporting company and they don't understand why someone who imports directly from the exporter can undercut their prices. The reason? They paid less per item and bought a lot more quantity. In general, some sellers might be able to make a living with a smaller margin. How? They don't have a brick and mortar store. They don't have employees. They don't have insurance. They take lots of chances. They do business from their home or a building that they already own. Their overhead is very low. They live outside big cities in very rural areas where the cost of living index is way lower. Or they live in cities where the cost of living is less than yours.
Answer
What if it's a wholesaler?
Answer
Dstuber:
1. I already put them in my Bidder Block List.
But besides avoiding them to receive newsletter and bids, what else does it do?
2. I really hope people like them die off soon. I'm just not willing to pay listing fees and ebay + paypal fee while selling at such a stupid margin.
I don't believe people prefer a $10 difference and went ahead to buy from a 96% feedbacker with only 100 FBs compared to people like us red / green stars with over 99.8%
Answer
I don't believe people prefer a $10 difference and went ahead to buy from a 96% feedbacker with only 100 FBs compared to people like us red / green stars with over 99.8%
Actually, when I bought batteries the other day, I bypassed four PS sellers with less than 99% +FB especially when they had several -FBs this month even though they had hundreds of sales this month too. I also deliberately bypassed a 99.7% +FB PS seller who ignored my eBay contact email question. I am a firm believer in poor presales experience means there will be poor post sales experience. So answer those questions in a timely manner and nicely or many of us will take our business elsewhere. I don't care about public answers, just the courtesy of a reply. The sellers I passed up were selling for like $1.85 with high shipping, and the one I chose was like $22.99 with low shipping. But then he failed to reply. I found the one eventually with 99.6% and I paid instantly, and he shipped nearly instantly and we both got +++FB. I paid $9 off his website for a camera battery. And on the other battery for my cell phone, I bought via eBay and paid $8.
Dennis
Answer
There really is no way to deal with undercutters. Besides adding value to your product and marketing your item as best you can, the rest is up to the buyer. If they want the lower the price they're going to go for it.
We offer full warranty and fast shipping, and yet on many products that we aren't the lowest price on we make few sales. We get the occasional buyer who recognizes the imporatance of warranty, wants their product quickly or thinks we look more professional than the competition, but for the most part our sales come from products where our price is lowest.
Answer
By the way, I started a thread similar to this when I started selling on eBay and was essentially called an idiot. I was also told to change business plans.
I wouldn't dare suggest either to you.
Answer
what is a undercutter ?
fortunes have been made by those who can sell for less , thats what free enterprise is all about. If you cant compete you need to look elsewhere
I think you do computer parts right ? that has always been a low , low markup business I looked into long before ebay and didnt like the margins and competion so I looked elswhere.
unless your the manufacturer your buying from a wholesaler , most of the wholeslers I used to deal with in my B&M are selling on ebay now .
how can I buy from them , then resell ?,
I cant so I dont sell those items anymore.
not want you want ot hear but my .02 cents