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    1. Geena is offline

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      #1

      How do China eBay sellers turn a profit?

      Hi, Iím trying to sell some mp3 players on ebay, and another shop is selling basically the same product but for a lot cheaper. Iíve done some research, and I think people are using China eBay suppliers to sell these at extraordinary low prices, with free shipping! I wonder how these people can make a profit selling items at such low rates?
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    2. Franko23 is offline

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      #2
      Yeah there are real cool low prices offered by the China ebay suppliers. May be there is something shady about the way the Chinese sellers rate their goods for sale on ebay store. I have heard that they usually sell fakes.
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    3. WholesaleForum's Avatar
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      #3
      Chinese eBay sellers of branded merchandise will always be selling counterfeit or refurbished goods (unless they are based in Hong Kong).

      You should try to divert the buyer's attention on the fact that by buying from you their product warranty is covered locally, and if any issues arise they will receive local assistance instead of having to ship the product back to China for repair. Additionally many Chinese eBay sellers don't offer any warranty, or the warranty will be limited. Many will even ignore any issues once the eBay 60 days feedback window has elapsed. While you shouldn't name and shame, you should word your auction in a way that explains to the buyer the benefits of buying from you.

      Another way is to emphasize where the product is located by adding your country flag to your listing image.

      Finally, you should consider offering a range of products that complement each other. It may be cheaper to buy one of your products from China, but it's not as convenient as buying all complementary products from one local seller (you).

      Failing that, set up a company in Hong Kong, and trade from there. Play at their own game.

    4. CoolDude is offline

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      #4
      I think it’s rather unfair to point a finger at the China ebay sellers, when bargaining is universal these days. Duplicate products are sold at cheap rates almost everywhere. Usually I think that since the products are manufactured locally, they can sell at a low rate.

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      #5
      But why is manufacturing locally in China so cheap? What does it mean to produce bulk goods in the locality?

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      #6
      It means cheap labor. China’s working population is large. There are innumerable rural people who are poor and ready to work for low wages.

    7. WholesaleForum's Avatar
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      #7

      Quote:

      Originally Posted by Sydboy75 View Post
      It means cheap labor. China’s working population is large. There are innumerable rural people who are poor and ready to work for low wages.
      At present, labor costs in China account for just 10 percent of a product's final production cost. Wages are however increasing due to a growing Chinese middle class.

      The Chinese are extremely hard workers. They are also exposed to a lot of local competition, which pushes them to improve constantly. And they have always had a keen interest in manufacturing and inventing new products, since over 5000 years.

      if that wasn't enough, today China is buying up raw materials from all corners of the earth, to guarantee its economy a regular supply of cheap resources for decades to come, and in view of the fact that labor wages will increase steadily. This will help them prolong their competitive advantage as the world's manufacturing hub.

    8. Raynard is offline

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      #8
      The wages are lower even in a high profile job. A software engineer gets just around 2000 USD as compared to 4000 USD plus benefits earned by another software engineer in the US.

    9. Sydboy75 is offline

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      #9
      That’s true. The benefits offered in the US are not applicable in China. They don’t even adhere to any environmental regulations. These sellers make profit by keeping wages and factory expenses to the lowest possible rate.

    10. Businesser is offline

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      #10
      They don’t sell cheap, it is just that the China eBay sellers find it difficult to adhere to their powerseller status. Bulk sales are essential for survival in the TRS (Top Rated Seller) competition of eBay. So it’s like a strategy that helps them maintain their rank.

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