Quote:
Originally Posted by flatout
So the re-sellers/retailers ship direct from factory just like PRIME 1 (they do not get their stock sent to their warehouse and then later sent to customers?... if this is the case does the factory that made them warehouse the unsold ones?)? If so that makes sense... but I still have doubts since unsold stock would need to go and be held somewhere and I feel the factory would not be willing to also warehouse and ship over long periods of time.
I get this and already know this (as you say that is simplistic business 101, the more you buy the better the deal) but I understood it as the retailers were shipping to warehouse and then after that customers which adds a whole other shipping layer to the re-sold one. My assumption could be wrong though but that is why I did not take your line of thought as it would not make sense if I am right about the shipping and warehouse issue.
EDIT:
I suppose it could be they all contract a warehouse together and share the warehouse burden and that warehouse then ships for them... but I have nothing to indicate this and I imagine this would have its own issues of who is responsible if something goes wrong (doesn't seem viable but who knows).
|
The way I know is:
1. Prime 1 allocates a certain amount of their stock to a Distributor
2. Distributor pics it up from Chinese factory
3. Retailer orders from Distributor
4. Distributor bundles up various orders from Retailers in the same region and ships them via ship.
5. Retailer receives them and sends it out to their customers.
(There may be exceptions, but I think this is the most common situation)
I'm not aware on how much customs and taxes a retailer has to pay when they receive their shipment, but it's probably way lower than what normal dudes like us pay.