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I want to understand the problem here for Dum Dums. I’ve read about sellers selling fake products etc…. But these are real products. Dum Dums has sold these pr

by yial 4y ago

I want to understand the problem here for Dum Dums. I’ve read about sellers selling fake products etc…. But these are real products. Dum Dums has sold these products to Sam’s Club. If Sams Club only allows shipping to 10 addresses for free (I have a membership but I don’t know if this is true) I just can’t see how that alone would be the problem. (Doing some digging it looks like you can also pay $15+4 to ship it on sams ) Even then, what if there was no Amazon? I know almost any business is hard, but why not focus on other sales streams? I just can’t see how ordering the products on Amazon and spending all this time is a valuable use of their E-commerce time. Different product, but a company I partner with professionally recently decided to leave Amazon as they found it to not be a strong revenue stream despite years of investment. (I don’t know if this was the right choice, but it was a choice they made. ) Maybe I’m naive - but Dum Dums could perhaps create a new SKU that they only sell e-commerce … run a marketing campaign to channel sales through their own website increasing their margin… heck include a little thank you card handwritten for orders they actually fulfill thanking their customers… maybe on Amazon make their listing more appealing by including something else in their Amazon package. Bump their package up to 500 and then include something “free” where the free item is another product they sell. Though as of right now their website is broken. I can’t even view products they sell. https://www.spanglercandy.com https://www.spanglercandy.com When I try to view any products I get a an error that nothing can be found. This now is feeling more and more to me like they’re missing some e-commerce basics but blaming a non issue. Edit: the website is now working. The sams club purchase is a better buy then anything they offer online at all quantities. Even if you compare buying 2300 for $118 to buying 5 of the 500 packs from sams club, $75. I don’t know their business, but I’m just confused as how they couldn’t sell a 500 pack themselves and be profitable. I’m sure I’m missing something.

sentientslug 4y ago
Just a guess, but they may have some sort of exclusive licensing deal with Sam’s Club where they are the only retailer that can sell the 500 pack. Exclusivity agreements for different SKUs such as this are common in the industry.
- yial 4y ago
  Even if that is the case, why aren’t they able to make their 400 pack price competitive on Amazon to the 500 pack being shipped from Sam’s club? I realize there may be a very real logistics reason why they cannot, nor do I necessarily think they should rush to the bottom. Just something doesn’t add up from this story to me.

by yial 4y ago

sentientslug 4y ago

Just a guess, but they may have some sort of exclusive licensing deal with Sam’s Club where they are the only retailer that can sell the 500 pack. Exclusivity agreements for different SKUs such as this are common in the industry.

yial 4y ago
Even if that is the case, why aren’t they able to make their 400 pack price competitive on Amazon to the 500 pack being shipped from Sam’s club? I realize there may be a very real logistics reason why they cannot, nor do I necessarily think they should rush to the bottom. Just something doesn’t add up from this story to me.