>Are fabless vendors, composed of a few people, who basically rebrand white-label shit from alibaba really making (and perhaps in this case losing) millions of dollars in time-frames of months to a couple of years ??
It wouldn't be surprising. I've looked into starting a side business selling some rebranded Ali/Bao items on Amazon, there are loads of niches you could corner. The thinking goes:
> The product is available for $X today, and Amazon takes a $3-5 cut.
> I can buy the product for $X-Z.
> I could sell these products with prime shipping for $X-Y, and make $Z-5-Y on each sale.
Doing that simple math often makes you think you could make a living off the scheme, even after accounting for packaging and inventory fees. If it works for a few months-years, you might double down and get into this situation.
Ultimately, I came away feeling like this is how dropship vendors find new product categories to move into: they wait for somebody to demonstrate that there's a sizable market for a product, then they add that product to their listings and cut out the competition. So you probably have 3-6 months on each successful product, tops.
You’re half right. Eventually sellers flood the market for that product and the profit goes down. Then as they get rid of their inventory the margin grows again.
So you have to stay on top of thousands of products, and your cost, in order to do well. It never stops.
It wouldn't be surprising. I've looked into starting a side business selling some rebranded Ali/Bao items on Amazon, there are loads of niches you could corner. The thinking goes:
> The product is available for $X today, and Amazon takes a $3-5 cut.
> I can buy the product for $X-Z.
> I could sell these products with prime shipping for $X-Y, and make $Z-5-Y on each sale.
Doing that simple math often makes you think you could make a living off the scheme, even after accounting for packaging and inventory fees. If it works for a few months-years, you might double down and get into this situation.
Ultimately, I came away feeling like this is how dropship vendors find new product categories to move into: they wait for somebody to demonstrate that there's a sizable market for a product, then they add that product to their listings and cut out the competition. So you probably have 3-6 months on each successful product, tops.
It's a jungle out there.