Why do others have such low prices while you can’t achieve it?

Maybe you might find other suppliers would provide lower prices, while you can’t achieve it. You may think those suppliers who sell lower prices have no profit, or those products are low quality. Definitely, they still have a considerable profit with high profit.

Now let me take an example.
For example, you are a reseller on Amazon, to resell TV stick with remote control.

For most of resellers, they would import from Alibaba.com which is the famous B2B online marketplace from China. Many suppliers provides low prices on the platform. I think you would import from Alibaba platform, and you plan to import 1,000pcs, at this time, the unit price would be US$25/pcs, and you would pay US$25,000 for 1000pcs.


However, your competitors don’t buy on alibaba.com, they choose to purchase on 1688.com, then, the unit price is US$16.10/pcs, and they just need pay US$16,000 for 1000pcs. Of course, it still has some obstacles to buy directly from 1688 platform for those resellers out of China, such as language,  product delivery, product inspection, etc, they just need pay 8% as commission to find a local 1688 buying agent, the local agent will solve all of the problem buying on 1688.com.

As above comparison, even paying 8% commission to find a local agent, you just need pay US$17,280=16000*(1+0.08) for 1000pcs, which is still more competitive than buying on alibaba.com.  US$25,000 VS US$17,280, buying on alibaba.com VS buying on 1688.com+local agent. 

Now I think you already know Why do others have such low prices while you can’t achieve it. In fact, you also can achieve it, just need make a difference choice.

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