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I just found out a 'customer' is drop shipping my product

minivanman

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I thought we were talking money, not being competitive. You can be competitive and worrying about someone else all day long...... while I'm counting my money.
 

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Creep

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Love this thread. Are you able to tier your product and make a cheap and expensive version for ebay? Then post both on amazon for more since there is no competition
 
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Veloman

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Love this thread. Are you able to tier your product and make a cheap and expensive version for ebay? Then post both on amazon for more since there is no competition
Good idea, but my product won't work for that. Many customers already think the price is high (but they still buy because there is no cheaper option). I wouldn't want to go to a lesser product. Mine is a good quality and the customer wouldn't understand the difference. So a cheaper product would just take away sales from the more profitable one.
 

Lee H

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Good idea, but my product won't work for that. Many customers already think the price is high (but they still buy because there is no cheaper option). I wouldn't want to go to a lesser product. Mine is a good quality and the customer wouldn't understand the difference. So a cheaper product would just take away sales from the more profitable one.
It seems to me you have 3 choices -

1. Stop selling on eBay at the price you're at - increase or withdraw.

2. Do your own listings on Amazon and compete with your customer.

3. Put up and shut up - sell your product for what you're asking on eBay and accept your customer is selling on your product - it's called capitalism! ;-)

The fourth option is to reach out to the guy and see if you can do a joint venture?

It's worked for many businesses in the past and might be a great move for you. :)
 

Rabby

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Good idea, but my product won't work for that. Many customers already think the price is high (but they still buy because there is no cheaper option). I wouldn't want to go to a lesser product. Mine is a good quality and the customer wouldn't understand the difference. So a cheaper product would just take away sales from the more profitable one.
If this is true, your business is vulnerable to cheap knockoffs. This would be a good time to figure out how you differentiate, and make it clear to the customer that yours is better for them in some way, compared to any knockoff that comes up.

I've mentioned this elsewhere, but I sell a class for $695 that someone else sells for $100. I know, it's not a physical product on ebay, but bear with me. I'm sure many a customer's first reaction is "OMG... the classes teach the same subject and meet the same requirement, why is of them is $600 more?!" But then they spend 2 minutes reading the details, or calling the office, and they find out why, and they buy my class. I sell more of that class than the person selling the "same" (but not really the same) class for $100.

"The customer won't know the difference between my product and a shitty one" is not a good operating theory... it's your job as an entrepreneur to communicate the important things to the customers. You're the expert on the product at this point, right?
 

Champion

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Dont be angry... this is what a free market is.

Just register your product brand name at a patent office and you will be able to kick the guy off your listing!

Best,
Champion
 

Xeon

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:rofl::rofl::rofl::rofl::rofl::rofl::rofl:

Since he buys from you and then drop-ships your product, how about offering him a deal where if he buys more products from you, you can offer him volume discounts?

This reminds me of those B2B guys who sell their own stuff on Amazon, but their actual business is offering private label / wholesale programs to those who're interested.
 
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Veloman

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A little update.
My Amazon sales have gone up huge and they have taken away most of the eBay sales from myself and my competitor.

Listing on Amazon has been a very good idea.
 

Xeon

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Listing on Amazon has been a very good idea.
I assume your product margins are pretty high? I looked at the Amazon FBA rates today and it's just insane.
There's many sellers with low cost products (under $9); I don't even understand how they can make any profit.
 
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Veloman

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Yeah for cheap products I don't understand how they can be profitable either. Amazon is 15% fee vs a total of about 13% for ebay when you factor in the money transfer fee. The 2% difference is worth it since it seems most people prefer buying on amazon.
 

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Spikeroo

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Don't bother him. Hes more than likely paying for advertisement for his product. This is one less thing you'll have to pay for. Just sign up for amazon, and start selling too. That way you will have 3 known selling points.
 

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