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Ecost.com and Similar Sites

Posted: Tue Nov 09, 2004 5:43 pm
by nigma
I was doing some shopping the other day and wanted to find the best deal for a watch I want to buy. I used googles froogle search to find sites that sold the watch. If I buy the watch directly from the manufacturer (nike) it's $160, yet I found several shopping sites such as ecost.com that were offering the watch for around $100. How can sites like ecost sell these products at such a relatively low price?

Posted: Tue Nov 09, 2004 5:49 pm
by John Cartwright
usually they tend to buy products in bulk and purcahse a reselling license.

Posted: Wed Nov 10, 2004 12:47 pm
by d_d
Nike can't really sell them for anything less than the RRP. Perhaps for marketing reasons but mostly because it would annoy their customers.

Nike may also be selling the watch cheaper in other parts of the world so if you could find someone willing to take the risk you could buy the watches there and import them and sell at a low price and still make a profit.

There are plenty of other ways as well, it could just be that they don't need to make so much per sale because their overheads are much lower compared to a brick and mortar shop.

Posted: Wed Nov 10, 2004 11:42 pm
by m3mn0n
Retailers get a wholesale warehouse discount.

Since Nike is the direct maker of the product they, like many others, tend to put the price up higher than their resellers are suggested to sell the product at. It's because their only competition are companies who are buying the product from them, so no matter what they are making some cash on the sale but just a few % per sale more when they sell direct in their stores or online.

The price inflating product makers do drives traffic to the retailers, thus driving more sales for Nike since they are the supplier. So as you can see, it's a win-win situation both ways. :wink:

Posted: Thu Nov 11, 2004 11:01 am
by nigma
Thanks a bunch for the replies. Definitely apreciated.

Oh, by the way, if anyone wants to check out the watch i'm thinking of buying here's the link:
Nike Oregon Series Altimeter