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losing on every sale ?

I just purchased a couple of cables.

the cables weighed  2 ounces

the cost of the cables was $2.59 including free shipping

the cables were shipped USPS first class package commercial base rate from La Puente California and arrived in a few days.

I am trying to figure out how the seller can do this. it is something I can't do.

according to my research and experience, to ship this cost $2.61

that means the seller took a LOSS on this item...how is the seller able to sell hundreds of these ?

I can't sell something at a loss.

there are many items I can't sell cause if I offered free shipping I would lose money and if I didn't it would make it harder to sell.

 

I want to understand how I  can sell lost cost items and not lose money

 

attached is the package I received the cables in.

 

 

Message 1 of 25
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24 REPLIES 24

Re: losing on every sale ?

Then don't offer free shipping.

 

Many sellers sell at at loss here just to keep their numbers up.

 

Some do it because they don't know any better.

Message 2 of 25
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Re: losing on every sale ?


@phcd1 wrote:

Then don't offer free shipping.

 

Many sellers sell at at loss here just to keep their numbers up.

 

Some do it because they don't know any better.


Did you actually read the post before responding, this was a buyer asking a question, not the seller.

Member of the Grumpy Old Man crew
Message 3 of 25
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Re: losing on every sale ?

I had a typo in my post, I meant to type low cost not lost cost (near the end)

Message 4 of 25
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Re: losing on every sale ?

They may be using these items as a loss leader in the hopes of getting buyers to order other items
Message 5 of 25
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Re: losing on every sale ?

Reminds me of Krista Micro back in the late 80's.  Sold thousands of computer cables and parts for less than anyone else.  We bought lots from them.  Their theory was that they were only losing $.01 or per sale but eventually they would make it up in volume....  They eventually learned different and we had to find a new supplier at a higher price....

Member of the Grumpy Old Man crew
Message 6 of 25
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Re: losing on every sale ?

The package indicates Commercial Base Price, which is a discounted price high volume sellers get. So, they probably make some small change on shipping.

Message 7 of 25
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Re: losing on every sale ?

every source I looked at says that rate is $2.61 for commercial purposes

Message 8 of 25
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Re: losing on every sale ?


@epbooksale wrote:

The package indicates Commercial Base Price, which is a discounted price high volume sellers get. So, they probably make some small change on shipping.


what about ebay and paypal fees

Message 9 of 25
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Re: losing on every sale ?


@dtexley3 wrote:

Reminds me of Krista Micro back in the late 80's.  Sold thousands of computer cables and parts for less than anyone else.  We bought lots from them.  Their theory was that they were only losing $.01 or per sale but eventually they would make it up in volume....  They eventually learned different and we had to find a new supplier at a higher price....


What does their feedback look like? I'm asking because I once bought a ton of USB cables from China and sold them off super cheap to offset a couple of negs that I had gotten

Message 10 of 25
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Re: losing on every sale ?

One possible reason........

 

Customer acquisition! Let's say they lose $1 on each sale, that's $1 to get the name, address & email address for a qualified buyer which they can then market to.

 

 

Message 11 of 25
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Re: losing on every sale ?


@epbooksale wrote:

The package indicates Commercial Base Price, which is a discounted price high volume sellers get. So, they probably make some small change on shipping.


No it isn't. CommBasePlus is. CommBase is what you get from every online shipping service(except USPS).

 

 

_____________________________
"Nothing is obvious to the oblivious"
Message 12 of 25
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Re: losing on every sale ?


@time-to-go-hiking wrote:

every source I looked at says that rate is $2.61 for commercial purposes


$2.61 for eBay sellers, but EVEN LOWER than that for mass mailings at the even lower mass commercial rate.

Message 13 of 25
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Re: losing on every sale ?


@dtexley3 wrote:

@phcd1 wrote:

Then don't offer free shipping.

 

Many sellers sell at at loss here just to keep their numbers up.

 

Some do it because they don't know any better.


Did you actually read the post before responding, this was a buyer asking a question, not the seller.


Yes, I did. Did YOU?

 

The OP said "I am trying to figure out how the seller can do this. it is something I can't do" indicating he wants to know how the seller does this (implying he is a seller too)? My answer is appropriate for a buyer or seller.

Message 14 of 25
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Re: losing on every sale ?


@time-to-go-hiking wrote:

that means the seller took a LOSS on this item 


You are assuming that the seller actually paid the cost of the shipping. 

 

If he is stealing the postage from his employer, he is not paying anything. 

Message 15 of 25
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