they wouldn't because they would not make more than they know they can sell.
why do they care about the RRP anyway? it's not them losing money surely
Amazon bins 130000 products a week from one distribution center alone.
- Thread starter Frenzy
- Start date
why do they care about the RRP anyway? it's not them losing money surely
It must be them losing money. Who else is losing money if Amazon stock a product I made then they dump it at landfill?
surely amazon buy the product they don't just say "we'll take some boxes from you, pay you no money and send back what we don't sell"
Plenty of large retailers do deals on a sell or return basis, that way they don't have to take the risk of having leftover stock taking up space if the product doesn't sell.
It depends on how you are selling through Amazon. If the product is just Fulfilled by Amazon then you basically pay them a monthly fee, have pallets of your products in their warehouse and they take care of the shipping for you. If it is sold by Amazon then they have purchased the product from you and are selling it themselves.
It's not quite that simple.
For most things it can be significantly cheaper per unit to make say 5,000 than 1,000 once you allow for the time to set up the production lines etc, so you do a production run that might leave you with a load of spares but works out cheaper/more efficient than doing multiple production runs (it's the basic reason why so many things are affordable now, and why the cost of almost everything dropped significantly as soon as the first production lines for them came into use)..
In the DVD replication industry it wasn't uncommon for a production run of say 2,500 units to cost less than one of 500 units because most of the expense was at the front end (mastering the discs), so small run distributors would try and do a single run that they expected to last them the length of their licence even if it meant at the end they might have a say 30-40% of the stock left and need to either destroy it or sell it to a bargain wholesaler for pennies per disc.
When it comes to "premium" brands there is a very definite thing where they don't want to devalue their brand by selling extra stock cheap, regardless of the reasons, it's why some brands are very very rarely included in any sale or offer.
I really want to cut down on Amazon shopping, especially after this report, but it's really tough. Example: been looking for a laptop sleeve. Found a review site and half of them are sold on Amazon. Already a bad start. Out of those one caught my eye and I figured I'd go to the brand's website. It's £50+. On their Amazon shop, £20ish...it's a no brainer.
I've noticed a lot of sellers also list on auction sites and are cheaper there than on Amazon for the same item so I suspect Amazon's charges must be quite high.
Designer brands do make more than they sell and they do destroy them.
You can't know how a fashion product is going to sell with certainty
Agree in most cases, but mine was opposite. Amazon was much much cheaper.
Probably closer to you rent space in amazon's warehouses to sell your stuff.
The costs of storage for stuff that doesn't sell fast will quickly make them worthless
can't believe it for the huge companies.
Soldato
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Ebay is terrible though. Full of sellers pretending to be in the UK when the item is actually coming from china. Pretty much nothing is available on a first class delivery, eBay deems 2nd class to be fast. The filters are horrendous too. It's just a poor experience overall IMO.
Caporegime
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Yep, this is actually a very widespread thing.
We got caught out one year when we did some boxes for a calendar company who sold on 'sale or return' (unbeknown to us) and a lot of their stock came back to them, unpaid for, and they went out of business and owed us for the boxes.
They doing this because if they were to either heavily discount or give the products away companies would see it as devaluing products/brand which would possibly cause deflation, so they prefer to throw things away instead of giving them away, horrible waste.
If you pop into HMV almost every unit you see in there is on consignment and the studio it comes from is paid for at the point of a retail sale, if it doesn't sell, it gets returned. Only a handful of studios don't allow this and want payment up front for stock.
Exactly. Stuff like this isn't new (it's just a different scale with Amazon).
As a kid, I lived near a sports retailer distribution centre and most weekend we would slide under the fence and get clothing, footballs etc from the skips.
https://www.vox.com/the-goods/2018/...nds-burning-merchandise-burberry-nike-h-and-m
Believe what you like but it's the reality stock that doesn't sell has to be destroyed.
Otherwise people realise thier expensive watch isn't all that expensive really