Reseller Business

[PuI2e_PLaYaZ]

Is it me or is buying retail cheaper than buying in bulk / wholesale from an authorized distributor ?

I compare prices from newegg to my distributors and it can't compete. There is at least 10 to 20 % less margin. So if a 100 $ hard drive on newegg would be 120 $ on a distributor.

I don't get it ? Where does newegg buys its products ? Is it like a classified top secret the government doesn't want us to know about ?

So what's the deal ?

[Steve R Jones]

Newegg probably gets their parts directly from the manufacturer. They probably also made the decision to sell “many” parts at a slim margin versus a few parts at a higher margin.

Newegg might also be purchasing a greater number of items from the manufacturer and gets a better price than your distributor does.

Then there’s the “service” factor. Most of the stuff Newegg sells is warranted by the manufacturer. Many distributors will handle warranty issues for you….