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The sellers don’t always hold their own inventory, or even have space to. They might not even be in the same country where they’re selling. They have crates of
by sethhochberg 3y ago
The sellers don’t always hold their own inventory, or even have space to. They might not even be in the same country where they’re selling.
They have crates of stuff shipped from the factory directly to Amazon, and from here they presumably can’t simply tell Amazon “throw it all in the dumpster” if it isnt selling well - or maybe Amazon charges them fees for that. It’s now expensive or impossible for them to return it to where it was made, it’s not selling, and they are paying Amazon to store it.
So on the short list of bad options for a dropship seller, you make the call that it is cheaper to ship these unwanted things somewhere than to pay for them to sit in storage.
The incentives here are pretty deeply flawed. These giant online marketplaces make it really easy for sellers to have almost no skin in the game.