How can my competitors sell their private label product on Amazon for so low?

welcome everybody to Q&A selling online

Today I have a question from Andy, Andy has a question here that says I picked a best-seller product, I sourced it and now  I received I but I can’t compete with my competitor’s prices, how do they do it?

That is a great question,

The most important thing that I see here is Andy you picked a best-seller product which is something that I don’t advise a lot of people still do I don’t advise you to pick anything in the top 100 because the competition is going to be insane.

There so many people out there doing exactly the same cuz all been taught the same, but I don’t think that that’s the best way to do it.
What I wanted to point out is that not only pick the best seller but you should have done your research before ordering this product

You researched that it does sell a lot, but you have to check your pricing you have to check how much is going to cost you to ship that to the US guessing that’s where you from I didn’t see that you have to see how much your taxes are going to be your duties or import taxes is what I’m talking about, now you have to send it to Amazon so you have to account for those fees the shipping now these shipping costs now Amazon is going to receive it and you have to account for the 15% Amazon

your competitor can also be struggling with not making money
you never know sometimes they probably went ahead and did it the exact same thing you did and now they think they’re making money, and they’re missing some of the fees and that is possible
checking the reviews it can it gives you an estimate of how long they’ve been selling for and this person if did it as you know if you’re looking at to 3000 reviews this person can be selling for a long time and they can be selling thousands of these per week so when you sell thousand a week or 2,000 a week or 10,000 a month

whatever it is, now your vendor in China the manufacturer is going to give you a better deal there’s no doubt about that, not only they’re going to bump you in line in the production so they can make yours quicker when you’re ordering 10000, but you also get a better deal.
Now you can negotiate when you’re ordering 10000 of something every month or every couple months you can negotiate a little bit on pricing
Always pay attention to your costs.

You can’t just randomly pick a product, private label it,  put a nice package on it now send it to the US.

Your vendor makes money on it, Amazon makes money on it, and you don’t make anything!

Besides this point is, how can your competitors have such a low price?

It depends on several things and you don’t really know what goes behind their doors. Your competitor can also be struggling with not making money, you never know, sometimes they probably went ahead and did it exact same thing you did, and now they think they’re making money and they’re missing some of the fees and that is possible again


the other thing is quality, do they have lower quality than you, cuz a lot of people think everything that’s made in China is cheap and low quality it isn’t
Us North Americans and I don’t get tired of telling this to my friend, Us North Americans we always pick the lowest quality ones because they are the cheapest

obviously, the cheapest quality product is going to have the lowest cost
so you can have the exact same product in China they can make the highest quality in the world if we’re willing to pay that price, but then again when the price goes so high now is it worth it?
The price got so high now that the quality is really good but at that price, you can buy it in the US or Canada so might as well Source it locally
People only go to China because they want to get better deals is not you’re not going there for good quality or nothing is just to get better price

another option could be, and that happens often, and people don’t even know it is your competitor maybe he has been selling this for now 2 years and he thinks sales have gone down and down and down.

To you still looks insanely High because now there’s I don’t know to 300 or 400 people selling that exact same product but to this person that’s been selling their forever he knows his Sells are going down because so many people are getting into this that his cells obviously diminished
Now is it possible that the seller is trying to liquidate his product by Break Even or even at a small loss, you know people do that often?

I’ve done it
I’ve done it a decent-size lost, it wasn’t even break even
I did it below what it cost me for a couple of products the price was too low, so there was nothing I could do really 2 to make it profitable
the product was amazing but what I should have done was bundle more than one and this was a product that I expected to sell for around $12 kind of the same thing

I had to launch it at about 8 something trying to bring it up slowly bring it up to the 12
I was hoping if I made it at 12 and a half people would buy two of them and now they would get free shipping because it’s an order of over $25 it didn’t happen so I liquidated those and I put them below what it cost me
so if somebody would have seen those they would have thought how is this guy getting products so cheap but no I will just losing just trying to get get rid of them

Quin Amorim, Host of Amazon FBA Selling Online Podcast