Unhealthy Competition amongst Indian Sellers on eBay.com

[real.phoenix]

Dear all sellers,

I have been selling on ebay.com for last 7 years and have grown from a small home based seller to a full fledged company with more than 10 employees as of today.

Competition is very good because it expands the market. However, over last 12 months, there has been very brutal and self-destructive competition in the health care category with products such as Accu Chek, FreeStyle, Omron Nebulizers etc.

During January 2014, there were about 4 sellers on eBay who sold Accu Chek Performa Test Strips. The selling price was USD 40.00 per pack. Every seller had the same price.

Competition in Janaury 2014

In January 2014, the cost price of Accu Chek Performa was Rs 725.00/- and it was sold for USD 40.00/-

Below are the profit calculations:

USD 40 = INR 2520.00/- (At the rate of USD 1 = INR 63.00/-)
Purchase Price = Rs 705.00/- + 5% VAT = Rs 740.00
Shipping Cost = Rs 110.00/-
Packing Material Cost = Rs 10.00/-
eBay Fee on USD 40.00/- @ 10% was USD 4.00/- which is 4 x 65.00 = Rs 260.00/-
PayPal Fee was 5% which is 2 x 65.00/- = Rs 130.00/-
Total Cost to the Seller = Rs 740 + 110 + 260 + 130 + 10 = Rs 1250.00/-
Net Proft for Seller was Rs 1270.00/- Per Pack

5 Packs were sold for USD 175.00/-
Shipping Cost was Rs 300.00/- for 5 Packs.
Net Profit for 5 Packs was exceeding Rs 5000.00/-

We used to sell at least 5 Packs per day.  Hence, earning Rs 6000.00/- per day from just 1 product.

Competition in April 2015

The Prices dropped from USD 40.00/- per Pack to USD 23.00/- Per Pack... The Product was still profitable. Sellers used to gain Rs 300.00/- per pack. This is little bit less than the earnings in a local medical store for this product. But it is fair enough.

Competition in April 2016

Today, 1 pack of Accu Chek Performa is sold for USD 18.90/- on eBay.
USD 18.90/- = Rs 1190.00/-
eBay Fees is 10% = 1.89 (eBay calculates dollar as $1 = Rs 66.50) = Rs 125.75
PayPal Fee = 5% = Rs 63.00/-
Purchase Price = Rs 725.00/- Plus VAT 5% = Rs 761.25
Shipping Cost = Rs 150.00/-
Packing Cost = Rs 10.00/-
Net Cost to Seller = Rs 761.25 + 125.75 + 63.00 + 150.00 + 10.00 = 1110.00/-
Seller's Profit per Pack = Rs 1190 - Rs 1110 = Rs 80.00/-

There are more returns and more refunds compared to 2 years ago...

Profit declined from Rs 1250.00/- Per Pack to Rs 80.00/- Per Pack.

Earlier, if we sold just 1 Pack, we earned the profit of selling 13 Packs today....

A single refund will cost us to sell at least 15 Packs to make the loss neutralized....

This, all has happened because of SENSELESS and WORTHLESS competition among the Indian Sellers.

A big question to all of us is: Are we doing business?  Or we are jokers?

It is the time to think to to reach a single base price.

I suggest following rates:

1 Pack = USD 22.50
5 Packs = USD 87.99

I have revised my prices. I wait for responses from other sellers.

Let us unite and keep a single base price.

Let us not kill a good market.

with this, I am sending a message to all sellers selling Accu Chek Performa. If you wish to bring a common base price, please respond to the thread.

Together and united, we can really progress. If we fight with each other, we all lose.

I hope for your co-operation.

Best Regards

Mustufa

[herbalproductsindia]

Dear all sellers

I am totally agreed with real.phoenix that we all sellers actually are killing the market with competition between each all of us.

So i today making an announcement to all ebay sellers,

I am ready to increase the price of accu chek performa only when other sellers agrees , i will increase the prices of both single pack and 5 box pack only when i see the price increase of other sellers also. This is the 1st and last time i am saying this , otherwise i will change the price of accu chek performa back to 18.50 $ which will be the lowest on ebay.

Thank you 

Hardeep Singh

[real.phoenix]

Dear Hardeep

Thank you for your message.

I have increased the prices as below:

1 Pack = 19.95

5 Packs = 85.99.. I had earlier made it 87.99

If all sellers agree, we can bring a base price.

Kind Regards

Mustufa

[real.phoenix]

Dear All Sellers

Please co-operate and increase your prices for mutual benefit.

There is no point in selling products at cost prices and undercost.

No seller can get "Established" in business by such insane competition.

I procure these strips for 725. Perhaps, lowest in India.

I really do not want to kill this market by selling at low prices. I am here for making a decent profit.

Accu Chek Performa is sold for USD 36.00/- in USA. It is sold for USD 40 equivalent in Russia and in Israel, this product is sold for USD 55 equivalent.

Then why are we offering it for 19.00?

Plus, there are Disputes, Negative Feedback, Rude Emails, Threats from all Buyers, Swear Words in emails and what not? Are we taking this mucb pressure to make Rs 80 per Pack for a product with an MRP of 2800.00?

The product thart is sold in India for 2800 is sold at much higher prices in developed economies.

Please think over this.

Kind Regards

Mustufa

[herbaluniverse]

now we have some great sellers in last one year...seems like they are here just for fun...sorry but selling 10 Liv 52 DS for $22.89 is a big big joke...:(

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@real.phoenix wrote:

Dear All Sellers

Please co-operate and increase your prices for mutual benefit.

There is no point in selling products at cost prices and undercost.

No seller can get "Established" in business by such insane competition.

I procure these strips for 725. Perhaps, lowest in India.

I really do not want to kill this market by selling at low prices. I am here for making a decent profit.

Accu Chek Performa is sold for USD 36.00/- in USA. It is sold for USD 40 equivalent in Russia and in Israel, this product is sold for USD 55 equivalent.

Then why are we offering it for 19.00?

Plus, there are Disputes, Negative Feedback, Rude Emails, Threats from all Buyers, Swear Words in emails and what not? Are we taking this mucb pressure to make Rs 80 per Pack for a product with an MRP of 2800.00?

The product thart is sold in India for 2800 is sold at much higher prices in developed economies.

Please think over this.

Kind Regards

Mustufa

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[comfortzone1]

Dear Sir/Mam

I manufacture shirts and want to sell on ebay.com 

can you please tell me about " the shipping costs for a below 500 gm item , how should i do "   &  " remmitence system "

please give me your contact no.