In general

theonlywayisup

In general I am a retailer. However, I have sole rights to half a dozen items imported into the UK and subsequently I have found myself being a wholesaler of these items to other retailers. Mostly I sell on my website, but also on Ebay and Amazon.

One particular item gives me a problem. I import it for approx £4 and it retails at £20. I sell it to one wholesaler in the uk for £6. Not a huge profit, but in volume it is generous.

I have one retailer on Ebay who lists this item, oblivious to me being the importer, at £19. When I list on Ebay, I see what he/she is listing as and sell at the same price. Within a few days we are into a price war. But he drops, I match, never undercut. Now this is bugging me as he clearly has no idea I am, the sole distributer and is trying to edge me out of the market, but I am just trying to sell a few on Ebay.

I listed yesterday and sold 100 nigh on. He has sold 17 in 24 hours. Same price. So tonight, true to form, he has reduced.

Clearly, I can reduce more, but to me, it is not about this, as I can undercut him right out of the market, but, I believe if you match another price, people will choose on feeback, etc. When he reduces, I match. So why does he continue to undercut?

What to do now?

lindseykim13

I guess this seller just wants to be cheaper as maybe their fb isn't as good as yours and hoping to get more sales for being the cheapest even if by a few pence. If your the sole distributer can't you just not sell him anymore stock? Depends i guess if you want to go it alone on ebay with the items or if you'd rather sell wholesale i'm not sure both would work long term as you seem to be having a battle already. If the price goes too low he won't want to buy anymore stock anyway as the profit won't be there.
I'd probably stick it out at whatever price i wanted and not change it for a week or so wait till he's off guard then change it lol
Or for a laugh you could undercut him to say £10 see if that scares him off.

hermum

I wouldn't sell to him if you know who the person is trying to undercut you.

StaffsSW

Register with ebay as the rightful Vero holder, then have his listings pulled for unauthorised retail and distribution.

Worked for me

StaffsSW

Oh - and nobody wins in a race to the bottom!

Pembroke

You don't say if the seller in question is buying direct from you or from the wholesaler you sell to ?

I'm sure the easiest solution though is the amiable one, contact the seller, tell him you're the importer and that the RRP (I know that doesn't exist anymore) is £20 and that it's in both your best interests if he sticks to that. Point out that there are loads of customers for the product and that a price war isn't in either of your interests.

If he plays up, or tries to act tough then you could point out to him what the minimum you could sell them for if you wanted to and see if he wants to have a price war.

And if he won't play ball PM me and I'll sell them at the price you want

Haffiana

You know, this is going to always happen to any wholesaler who does not have a clear market strategy. You have to decide where you are going with your business. You can choose to either wholesale, or to sell at retail. However, if you take the third option - as you have done - to do both, then you need to be very clear about what you expect to happen to your market. As a wholesaler, you should NEVER undercut those you supply, and ideally, you should never be in competition with them. If you do, you will kill your own wholesale market. In this case, it would be those that you supply who should be choosing the market/retail price, and if you do sell some at retail, you should stick with their price.

If, as you say, you want to mostly retail presumably because the margin is better, then why on earth are you also selling wholesale and then complaining because this means other retailers? He is trying to sell his product successfully, same as you.

If you look up your local Businesslink, you can find many excellent free seminars and business advise for small businesses.

hermum

But best be quick
http://www.businesszone.co.uk/topic/regulation/government-confirms-business-link-s-demise/28905?ref=ukbf

Strapped

Why don't you stick to joblots on eBay? If you pick up a few sales then the margin will be better than to your existing wholesaler, and you won't be in direct competition with the other seller.

I have this cosy relationship myself on one of my products but I'm the small guy - it works (at the moment) though.

preable

Stick to ebay i say

patman99

Bet all those knobs who voted DumbDumb Cameron in are now regretting it.

Get rid of Businesslink, then no new business will be able to get any help, end up going bust and then up goes the unemployment figure. Really helps the economy that ehh?.

As for the OP's problem, if you stop wholesaling the product and become the only seller on Ebay, then the other seller will soon get the message. If he is still selling the item after a couple of months, then you will know one thing, he is importing them himself.