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Topic: Your latest purchase (Read 115 times) previous topic - next topic

retrolefty


I frequently don't understand the business model of selling an item and taking a loss on the shipping... But I'm also enough of a pragmatist to be happy getting stuff on the cheap..


I too can't see how they are making any profit at all with including free shipment. All I can think of is that their government is subsidizing or reimbursing the shipping costs. Nothing else makes sense?

Lefty

Techone

I order a 8 High bandwith transistors ( BFR90 ) from the UK. It took 2 week. I ask the cleck at my PO box office - at Shoppers, Most Eastern oversea mail goes to Montreal and take the road throught the 401 < - Canada's busiest Highway. And off course going to the Post Office Custom in Mississauga <-- West of Toronto.  A bit more quicker than from Vancouver. I don't know about the US mail setup.  That was nice to know about the Canadian mail system - Canada Post.

GoForSmoke

My Futurlec order came from China in 12 days. I'm not on the East Coast USA but not so far it makes a real difference.

I find it harder to express logic in English than in Code.
Sometimes an example says more than many times as many words.

Nick Gammon


I too can't see how they are making any profit at all with including free shipment.


Didn't someone say recently, that on eBay you can get the exact same thing at two price points:

* More expensive, but "free shipping"
* Cheaper, but you pay for shipping

Perhaps that's how it works. Although I have got some stuff recently that seems cheap either way.

focalist

#49
Feb 22, 2012, 01:41 pm Last Edit: Feb 22, 2012, 01:43 pm by focalist Reason: 1
The thing is, I make a habit of grabbing the bottom of the bottom of the barrel.  I can see how a vendor might sell a one-off at a loss to get rid of it, or a new vendor making a mistake on how to list.. and learning a lesson via losing a little money on shipping.

The bottom of the barrel often is a loss even on the item itself, much less the shipping-- and yet vendors place the items up and sell them again and again.  A good example is a hundred 5.1v zeners for a dollar including shipping.. I don't see the diodes actually having a cost to the distributor of less than a penny each- so it equates to a loss on both the product and the shipping.

There has to be some kind of subsidy or kickback from their government (market dominance thing maybe?) for these prices to be true-- and they are.  Vendors like marcmart or kuuco (among others) regularly HAVE to be losing money otherwise.. and they have been around a couple of years- unlikely if actually operating at a loss... of course, it is possible that these items are a loss leader, to get folks like mentioning their names, like I just did.. in which case, it's very cheap as a form of advertising.
When the testing is complete there will be... cake.

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