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> Most stores operate on a margin on merchandise that is under 10% Tell that to the literally hundreds of "shops" that dropship goods for ~50x the buying pric
by krageon 5y ago
> Most stores operate on a margin on merchandise that is under 10%
Tell that to the literally hundreds of "shops" that dropship goods for ~50x the buying price.
- pas 5y agoOkay, what's their operating margin? Since there are a lot of these stores, Amazon (or whatever marketplace) takes a cut, there are fixed costs, fraud, scams, refunds, other stochastic losses. Sure from time to time someone finds manages to make a decent income with such an operation, but it's not because the unit economics are so great.
- krageon 5y agoThey are at least a power below the markup, I know this for certain because I investigated this option when I noticed. There are a few things that require manual intervention, that's all.