@rc-addict-aus wrote:
I just bought a ipod usb charger for $1 INCLUDING SHIPPING about a week ago.... cause i needed one but i was curious how the f$% someone can afford that.
The letter came a few days later with hes ebay logo on the letter and it didnt have a regular stamp you buy from aus post, it was one of those stamps you have to press onto letters with ink.
unless the guy bought the usb cables for minimum less than 10cents each theres no way he would make much profit each, maybe he has a deal with a postal agency i duno, but dont tell me its a dropship this or china that cause it would take way longer ive waited a mth for stuff from china.
heres the usb cable i bought, id love to hear anyone elses thoughts, but shut up with the dropshipping bs its utter stupidity if you think everythings from china, maybe he bought the usbs from china and got them sent here but not dropship.
http://www.ebay.com.au/itm/271637353262?_trksid=p2057872.m2749.l2649&var=570473372729&ssPageName=STR...
It's either a loss leader, best match manipulation or quite possibly both.
After eBay, Paypal and postage costs, they are making a loss regardless of volume (letters don't attract big discounts even for corporations that send thousands of letters per day), and that's disregarding the cost of the item so they are definitely making a loss on that item.
They have sold 345 of them, how many people do you think will have purchased it, or even just looked at it and thought wow that's cheap, might see what else they have for sale? A whole bunch, and many will have purchased higher margin items or even multiples of cheaper items that when consolidated into one letter/parcel go from being a loss leader to a marginal profit item. It's the same as Woolies selling $1 loaves of bread or whatever it is now, they aren't making any money from the bread but they are making money on the other items you pick up once they have you inside their doors. So if they lose $1 on each sale, that's $345 spent on very targeted advertising, obviously money they think is well spent.
