How do these people make money??

ballisticbrian

"In reality, there is very little, if any, customer loyalty on the internet."

I'm sure Amazons 237 million active customers would agree with you.

Amazon is a marketplace, not a single seller. It's been a market place for some years now.

RFW

LoftScavenger wrote: »

You also stated that they have gone on to be limited companies. It is illegal for a limited company to purposefully make a loss, so they are obviously making money.

So you were an accountant and have never seen a limited company lose money? They could, of course be not purposefully losing money, at least on paper.

I've nothing against loss leaders as a business practice (we actually give some items away to encourage business), the one you initially described didn't seem like a great idea, it still doesn't. I'm also not against harvesting email addresses and have a large email database. that we regularly email.

mandragora_2

Why don't you buy your stock from these people selling at a lower price than you can get stock from? Then you can sell it on with at least a £14 cut in your initial costs.

I watched a fly on the wall documentary showing the cut-throat tactics of the price wars between the 'pound shop' chains. One competitior opened a new shop over the road from an established shop and led in their opening week with a loss-leader on a great product. The established shop over the road simply sent their employees over the road to buy it, bought them out of their loss-making stock and then went on to sell it themselves but in a more carefully managed way, sold at no loss and increased footfall in their store as a result of the advertising that their new neighbours were doing, which brought more customers down the street that week.

LoftScavenger

ballisticbrian wrote: »

Amazon is a marketplace, not a single seller. It's been a market place for some years now.

You are correct, but I read your original comment as
"In reality, there is very little, if any, customer loyalty on the internet."

And not
"In reality, there is very little, if any, customer loyalty for single sellers and not marketplaces on the internet."

My point is valid - they go to Amazon to shop as they trust Amazon, which is customer loyalty.

LoftScavenger

RFW wrote: »

So you were an accountant and have never seen a limited company lose money?

Sheesh, you really like to make an argument out of nothing - are you my wife?

I've nothing against loss leaders as a business practice (we actually give some items away to encourage business), the one you initially described didn't seem like a great idea, it still doesn't. I'm also not against harvesting email addresses and have a large email database. that we regularly email.

So I basically said to sell something at a loss, to get loads of sales, and then use each buyers email address for marketing purposes.

You don't think this is a good idea but you give some items away to encourage business and you harvest email addresses.

That sounds completely different!:rotfl:

mattcanary

mrs_sparrow wrote: »

They haven't.

OK, I wanted to have a whinge but without giving everyone the ins and outs of my business it is hard to explain how I know they haven't so I am going to leave it there as I can't say anything else without diviluging what industry I am in and I do not want to.

This industry is quite unique I guess, there are no wholesalers or fakes from overseas, you cannot buy from overseas cheaper, in fact I only buy from UK companies - yes, they are expensive but they are worth every penny and are actually deemed the best products on the market, in the world and this is why one of the manufacturers is cracking down on stock being sold on eBay. It devalues the brand. I think that the other manufacturer will not be far behind either to be honest.

Is it a matter of national security you do not divulge what industry you are in?!!!!




How can you expect a proper answer without telling people?

mattcanary

soolin wrote: »

Anyone spamming me with emails would ensure I never bought from them again.

Your business plan of 'only' losing £5 per cold lead is also missing the fact that fees have not been included. Your cold leads are more likely to be costing you your business- please don't go lightly into business like this, it's hard enough doing it properly as it is. I would urge you to go through your books very carefully with an accountant.

To be honest, it is using good business sense.


It is the kind of thing that Tescos often do. They will make a loss on certain items and then point you towards other profit-making items on their website.


It may be cynical, but I am sure it works.

mattcanary

lovinituk wrote: »

This is unsolicited email / spam which is illegal. I wouldn't hesitate to report any seller who did this.

It's not illegal at all.


It may be unwanted spam to you, but it is certainly not illegal.

sequence

There's almost no chance of getting people to buy from a site they've never heard of before and know about only as a result of spam from an ebay seller. You're better off putting your marketing budget on the lottery, I can almost guarantee you'll see a better return

mattcanary

RFW wrote: »

So you were an accountant and have never seen a limited company lose money? They could, of course be not purposefully losing money, at least on paper.

I've nothing against loss leaders as a business practice (we actually give some items away to encourage business), the one you initially described didn't seem like a great idea, it still doesn't. I'm also not against harvesting email addresses and have a large email database. that we regularly email.

So what are you whinging about in your earlier post then?