I found a retail price that is lower than Doba's wholesale price, how is this possible?

Some retailers can offer products for less than you pay for identical products from a Doba supplier by implementing any of several retail strategies:
  • Selling the product at a loss to draw customers to their store.
  • Buying large quantities to qualify for lower wholesale prices.
  • Selling at closeout prices to clear inventory.
  • Charging outrageous shipping fees.
  • Selling products that have been returned or gently used.
  • Buying cheaper wholesale products from suppliers that offer fewer services than Doba.
  • The retailer might even be selling grey market goods—products sold through distribution channels other than those authorized by the manufacturer.
Retail merchants constantly employ numerous innovative pricing strategies to gain a competitive edge. Doba and its drop ship wholesale suppliers have no control over this aspect of the retail business-competitive pricing, sometimes to the point of taking a calculated loss, is part of the nature of retail merchandising. If you are still concerned about wholesale pricing, read our article Giving Away the Store, Part I: Competing on price alone. Almost every online retailer makes the same honest mistake. They figure they can earn a lot of money simply by selling merchandise for a little less than the competition (a strategy that relates directly to wholesale pricing). You will soon discover, however, that competing on price alone does not work. Read Giving Away the Store to learn why.

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