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How does some eBay sellers and gmailmall.com offer low price (Worldwide Free Shipping)

Discussion in 'Ebay' started by 2012supman, Jun 27, 2012.

  1. 2012supman

    2012supman Newbie

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    Could someone explain this? I found some price is less than $1,USD$ 0.99,wordwide free shipping,unbelievable.looks very attractive,the cheapest shipping from china to USA we can get is...,I heard HK Post, China Post,Which shipping method do you enjoy ?
     
  2. snorlax

    snorlax Newbie

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    Never underestimate what you competitors are paying.

    Profit margin - in the UK, for example, sellers may want to earn (say) £50 a day as profit, yet in China a seller may be happy with £5, so their profits can be slimmer.

    Fees - they could be a massive seller so their fees per item could be much less, also, if they are selling on an alternative market place (ebay.cn or ebay.hk) the their fee structure may be completely different.

    Shipping - again, you can't be sure that if it costs you >$0.99 to post to China then it wont cost the same to send it the other way.

    Cost of product - think about the component costs of the item. An SD card reader is just few bits of plastic and metal, probably pennies to buy.

    The reality is that cost of living in China and other developing nations is a fraction of what it is in the west, the Chinese pegs its currency to keep the cost of the Yuan versus the USD artificially low. *Everything* in China is cheap compared to the cost in the USA, you will never, ever be able to compete with China.

    The other reason is to game eBay's ranking algorithm. Take a look at a listing that has hundreds or thousands of sales, then click 'view all revisions'. You should notice lots of price changes. What these eBayers are doing is starting at a low buy it now price, getting sales volume in, then as eBay promotes this item more and more the seller knows they can put the prices up.

    Or the other reason is that they could be an idiot thinking that selling a 0.70 item for 0.99 = 30% profit margin.
     
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  3. The Secret

    The Secret Junior Member

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    Its all based on the Chinese currency and how they keep it so low compared to other countries, also in China and Hong Kong they can send things for much cheaper as the majority of Chinas business is Export, they have special rates.

    I always wondered the same thing, If you are a big time seller in Australia or USA you do get postage discounts, but that is because you are on a contract to send say 10000+ parcels a year. The more you send the cheaper your postage gets. Also if you are a top rated seller your final valuation fee gets lower etc etc

    Just because people in China sell for so low doesn't mean that you can't sell the same item for more expensive, a lot of people hate waiting the 10-20 working days that it takes most of the time to receive something from China when they use Honk Kong post or China Post.