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Try before you buy?

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dorkshoei:

--- Quote from: nctnico on December 27, 2022, 05:59:18 am ---Keep in mind that a typical margin stuff being sold is at least 60%.

--- End quote ---
Are you making this up?

A direct to consumer business model might aim for 60%.

There is no way that TEequipment to take a random example is making 60% margin on TE sales.

tautech:

--- Quote from: dorkshoei on December 27, 2022, 02:59:18 am ---
--- Quote from: ataradov on December 27, 2022, 02:48:11 am ---
--- Quote from: tautech on December 27, 2022, 02:45:12 am ---Sometime bady wrong with your browser settings....there's dozens of them !  :scared:

--- End quote ---
Example?

Note that I don't mean "sold on amazon.com" or even "fulfilled by amazon". "Sold by amazon" means that Amazon actually owns the device, and does not just hold it for the seller. This is extremely rare for expensive items with low sell-though rate. Amazon does not want to sit on inventory that does not sell.

--- End quote ---

I've seen Tautech say here on a few diff threads that the "sold by amazon" Siglents were really Siglent USA distributor. Like you I didn't agree but it didn't seem worth arguing about it :)

--- End quote ---
While not impressed Siglent NA feels they need sidestep shit on their extensive dealer network and sell products without direct support and/or have them shipped to all corners of the globe as Amazon products are I don't have much time for such sales practices as it only breeds bad blood when Amazon buyers come to authorized resellers for support.

Then I guess there is a bigger picture in sales strategy having built large sales volumes via Amazon and shutting competitors out.
How these sales are managed be it Siglent NA has a shop or Amazon sell for them I don't care but I'd rather Amazon sales don't tread on the toes of the official dealer network.

BillyO:
I think the terms "margin" and "profit" are being confused here.  A 50% margin is a 100% gross profit.  In other words, if the retailer buys a product for $50 and sells it for $100 he is collecting a 50% margin.  That said, in most bricks & mortar type outlets a 40% margin is the lower limit.  That means the retailer retains 40% of the sale price before expenses.  Due to the reduced overhead, ecommerce can sustain much lower margins.

A 60% gross profit equates to a 37.5% margin.

An actual 60% margin is unheard of outside of such things a drug dealing and equates to a 150% gross profit.  Nice work if you can get it, and you can get it if you try.

ataradov:
I can see how "sold by amazon" is attractive for a vendor that sells a reasonably unique product. You essentially have to deal with only one high volume buyer and there is no direct replacement that Amazon can use, so they have to go back to you for more. But you are also completely losing control over pricing and Amazon has no issues selling a few units at a loss to drive the volume up. This sets unreasonable price levels, so you pretty much have to abandon any other sales method in the region.

Companies that let Amazon rebadge their products under Amazon brand (like amazon multimeters) are essentially competing with themselves. And this makes no sense to me unless upfront payment is really good.

nctnico:

--- Quote from: dorkshoei on December 27, 2022, 06:06:46 am ---
--- Quote from: nctnico on December 27, 2022, 05:59:18 am ---Keep in mind that a typical margin stuff being sold is at least 60%.

--- End quote ---
Are you making this up?

A direct to consumer business model might aim for 60%.

There is no way that TEequipment to take a random example is making 60% margin on TE sales.

--- End quote ---
They are. I have been trading computer equipment in the past and 60% is the average margin from wholesale to consumer. To be clear: 40% of the consumer price is what the trader buys it from the wholesale distributor / importer. 60% is profit (well, not exactly because from this support, advertising, heating the building, etc need to be paid).

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