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Amazon sells nearly all of its Echo products through their own retail channel, this means they don’t pay a margin to other retailers. I can’t think of a single
by quanticle 8y ago
Amazon sells nearly all of its Echo products through their own retail channel, this means they don’t pay a margin to other retailers. I can’t think of a single consumer electronics company that sells tens of millions of units directly to consumers like that.
Doesn't Apple sell far more (of its own manufacture) than Amazon, directly to consumers as well?
- greggman 8y agoApple sells on Amazon, Best Buy, Verison stores, T-Mobile stores etc... lots of places.
- trollied 8y agoThe margin on Apple products is tiny though. As a reseller, you'd be lucky to make 5% if you sold at the same retail price as Apple.
- danpalmer 8y agoYep. I used to work for an Apple reseller. We had a good relationship with Apple, but selling a £150 iPod and a £15 case, we made more on the case. Apple margins are non existent. Companies sell Apple stuff because they have to.
- amelius 8y agoSo as a salesman, you would be trying to convince customers to buy the other brand you have on store?
- danpalmer 8y agoNo, we didn't stock iPod/Mac competitors. There was good competition for cases and other accessories, but we weren't told the margins between suppliers for those. All I knew about margins was that Apple stuff was ~6-12% depending on the product, accessories were great, and software was excellent at 50+% margin (except for iWork/iLife), but we didn't sell much software.