Re:Amazon private label brands are quietly taking over Amazo...
by user3359 on Friday October 05, 2018 @07:56PM
(#18152674)
I've seen this happen too. And have some insight from the seller side:
6 companies might sell the same product at varying prices, some of them uploading 1000s of items they have dropshopping for, but no real inventory. 1 or 2 may legitimately sell the product at a manually entered price that's competitive - when those sellers sell out, the others who dropship at cost+100% show up as the default seller.
The big dropshippers make their profit off infrequent, high margin sales that can be auto fulfilled when legitimate sellers run out of inventory.
6 companies might sell the same product at varying prices, some of them uploading 1000s of items they have dropshopping for, but no real inventory. 1 or 2 may legitimately sell the product at a manually entered price that's competitive - when those sellers sell out, the others who dropship at cost+100% show up as the default seller.
The big dropshippers make their profit off infrequent, high margin sales that can be auto fulfilled when legitimate sellers run out of inventory.