Out of Pocket Selling - Why?

I have browsed books for sale on Amazon, eBay etc. and I am totally puzzled why some sellers seem to be selling at a loss?

They offer free postage for heavy books and yet the selling price, is less than the cost of postage, not including packaging and getting the parcel to the post office! Plus from each sale, fees need to be paid to Amazon/eBay and Paypal. Therefore, they put time and effort into listing and working for nothing only to be out of pocket everytime, why? Somehow they must be making a profit, but how?


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Cheers!

MarketPal


https://www.ebid.net/uk/stores/green-fingers
https://www.ebid.net/uk/stores/book-wise
https://www.ebid.net/uk/stores/clothes-hanger
https://www.ebid.net/uk/stores/adore-decor
https://www.ebid.net/uk/stores/thrifty-trinkets

As I understand it, the big booksellers use software to undercut their competitors - hence the 1p books and minimal p&p.

At least some of the sellers of ultra-low priced, mostly used, books (and a few other categories such as videos) are programs run by charities. The idea is not to make a profit, but to give jobs (sorting donated goods, packing and shipping) to the communities their project is serving. Donations from other sources make up the shortfall. Turning a profit is actually antithetical to such operations.

Amazon, in particular, seems to encourage these non-profit organization sellers, probably because it brings a lot of traffic to their site who go on to buy higher-priced and new goods (that have more complete descriptions, photos of the item being sent, consistent quality control, etc.).

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Originally Posted by MarketPal

I have browsed books for sale on Amazon, eBay etc. and I am totally puzzled why some sellers seem to be selling at a loss?

They offer free postage for heavy books and yet the selling price, is less than the cost of postage, not including packaging and getting the parcel to the post office! Plus from each sale, fees need to be paid to Amazon/eBay and Paypal. Therefore, they put time and effort into listing and working for nothing only to be out of pocket everytime, why? Somehow they must be making a profit, but how?


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I agree.

Sometimes I look at items on the Bay and I know that the seller has lost money on the sale. The fees and postage are more than what they got for the item. I don't know why they bother either. Online selling is time consuming. Pictures, writing listings, preparing the item for shipment. Not to mention the stationery, printing ink and so on. The seller might as well put the item in the trash, the recycle bin, or give it away. They would be further ahead.

It's not just books either - some of the items I sell I look at the prices being quoted eBay and I can't buy them at trade for the prices on there - where on earth they get their stock from beats me - I can't match them

When listing an item I also look at the prices on line first or what items sold for, I do wonder at how they manage to sell so cheaply, only this morning I checked something on the bay and the price it sold for was less than it cost to post so out of pocket before fees were paid.

On another note, I have done a couple of car boots with my sister this year and they were a waste of time, my sister was selling some very good clothes which were lower than the prices in a charity shop but still they want you to reduce the price, after early rising, petrol cost and pitch fees have decided it is just not worth it.

The saying 'note so queer as folk' springs to mind some time.