Cancelled order but they have dispatched anyway!

unholyangel

Collabora wrote: »

No i am not read what i stated. you sated a small retailer could not afford to sell cheaper than RRP which is false.

if a small retailer can purchase a £40 marked item for £5.23 and sell for £15 at a profit when only purchasing 1 and major retailers can buy 1000 of these and then sell at the marked £40 then they will be getting these well below the £5.23, so if they place these on special 3 for 2 or 3 for £20 they will still be making a large profit. but like any business, thinks like rent/rates/staff/insurance/utilities all have to be taken into count when working profit margins.
so going back to OP Amazon can afford to purchase in bulk at a lower price , so can charge less to the enduser if they wish too, which a small retailer cannot afford to do this

Amazon perhaps isnt the best example to use there. They undercut even our biggest retailers but not because of their buying power but rather because they dont pay tax (corporation or VAT) in the UK, because they're not a UK company.

Collabora

unholyangel wrote: »

Amazon perhaps isnt the best example to use there. They undercut even our biggest retailers but not because of their buying power but rather because they dont pay tax (corporation or VAT) in the UK, because they're not a UK company.

still relevant to the OP though to why Amazon had the item cheaper.

they still pay Luxembourg VAT of 17%

For Amazon Europe Core SARL:

Amazon Europe Core SARL, Soci!t! à responsabilit! limit!e, 5 Rue Plaetis, L-2338 Luxembourg
Share capital: EUR 37,500
Registered in Luxembourg
RCS Luxembourg No: B180022
Business Licence Number: 10040783
Luxembourg VAT Registration Number: LU 26375245
Other contacts:

For Amazon EU SARL:

Amazon EU SARL, Soci!t! à responsabilit! limit!e, 5 Rue Plaetis, L-2338 Luxembourg
Share capital: EUR 37,500
Registered in Luxembourg
RCS Luxembourg No: B-101818
Business Licence Number: 104408
Luxembourg VAT Registration Number: LU 20260743
For Amazon Media EU SARL:

Amazon Media EU SARL, Soci!t! à responsabilit! limit!e, 5 Rue Plaetis, L-2338 Luxembourg
Share capital: EUR 12,500
Registered in Luxembourg
RCS Luxembourg No: 112767
Business Licence Number: 110001
Luxembourg VAT Registration Number: LU 20944528

unholyangel

Collabora wrote: »

still relevant to the OP though to why Amazon had the item cheaper.

Semi relevant perhaps but its misleading to say big companies can afford to sell cheaper solely because of buying power. There are many other factors involved.

Namely, big companies all use loopholes in our system to keep as much of their profits as possible. Small businesses are usually unaware or unable to take advantage of such loopholes. They're often given tax breaks as well and other incentives to set up shop here by the government.

In short, smaller retailers - despite being better for the economy - get shafted in favour of bigger companies.

foxtrotoscar_2

Time to get back 'on topic' perhaps guys? Forum rules rule!

unholyangel

foxtrotoscar wrote: »

Time to get back 'on topic' perhaps guys? Forum rules rule!

Asked to get back on track after a maximum of 6 posts that could be/might not be deemed as off-topic (personally I think the last 3 probably are but not those before)....that has to be some sort of record!

the_lunatic_is_in_my_head

Collabora wrote: »

No i am not read what i stated. you sated a small retailer could not afford to sell cheaper than RRP which is false.

if a small retailer can purchase a £40 marked item for £5.23 and sell for £15 at a profit when only purchasing 1 and major retailers can buy 1000 of these and then sell at the marked £40 then they will be getting these well below the £5.23, so if they place these on special 3 for 2 or 3 for £20 they will still be making a large profit. but like any business, thinks like rent/rates/staff/insurance/utilities all have to be taken into count when working profit margins.
so going back to OP Amazon can afford to purchase in bulk at a lower price , so can charge less to the enduser if they wish too, which a small retailer cannot afford to do this

I understand what you saying, I was commenting on the subtext of your post, i.e that the RRP of 39.99 in this case is just a made up figure that doesn't appear to bear any relationship to the purchase price.

Amazon is a whole different ball game, they uncut because they have a lot of power over suppliers and will happily sell at loss, they even spider against their own FBA sellers and then jack up the price when it's only them with the buy box

Collabora wrote: »

still relevant to the OP though to why Amazon had the item cheaper.

they still pay Luxembourg VAT of 17%

On physical goods they pay VAT at the rate of the country where the purchaser is based (and now since the start of this year they have to do the same with digital products), they do send their cash via Luxembourg but reportedly haven't made any significant profit over the last few years partly due to investing in fulfilment centres to further their FBA program.

Amazon is on the path to dominate the market at any cost, based on the product I sell, their prices can have little relation to what they are paying for the stock.