It always amazes me how they sell it for so cheap?

[musicyouneed]

I sell CD's and do use USPS mail to ship.  I can tell you that 1 CD ships for $2.77 first class that is with tracking. Now in order to clear $2.77 shipping cost, you need to ask $3 at least (unless you have to pay an additional courier fee like me.)  That doesn't include the paypal fee or the envelope cost or all the other things that need to be done/purchased.  

When I see sellers trying to sell their CD for $1.99 or 2.79 with free shipping, I have to laugh.  It is costing them money.  In this case I would just donate them, or lot them up and sell as a bundle.  They loose money with each sale.  

[vintage*finds]

Did you look at their FBs? It's possible they're banking on multiples from each buyer. They probably win more than they lose.

[cumos55]

Is it a ... Loss Leader....?

Building up the  Feedback number?

[musicyouneed]

No all of them have over 1000 plus feedback.  I think a lot of buyers don't break down the expenses.  They sold an item but it cost them 50 cents for each one just to sell it, kinda eats into any profit.

[femmefan1946]

Another possibility is discount postage.

Either using discount postage stamps or shipping in such quantity that they have a special price on their mailings-- pre-sorted mail has some decent discounts.

And multiple purchase mailings of course.

But generally, it's hard to comprehend how little people know about how business works.

My personal favourite is the guy who can't understand why a merchant won't buy his stuff for $X when that is what the merchant sells it for.....

[katrkg2612]

The answer is very simple – because these sellers are from China…With due respect I would not laugh and jump into quick conclusion about them being ignorant…. While my lunch time allows, just out of curiosity I made some quick calculations…

Let’s take a real life example and do some math: Chinese newbie to ebay - cd_love1987  – account  since April 2017. His specialty - CDs only.

Current active listings 883, most recent sold over the last 5 weeks (from Aug 15 to Sept 28) - 580 discs at $2.99 US and free shipping

Now let’s crack the numbers and correct me if you think I am wrong. To make it easier let’s take 500 discs sold during the last 4 weeks

All calculations in USD:

Gross margin: 500 discs x $2.99 = $1,495

Less 10% ebay fee = $1,345

Sellers shipping costs: all Chinese sellers enjoy perks of Epacket shipping at lowest rate. For my calculation I took 0.98 $ per 65 g parcel. (I think this how much a CD would weight) from here:  http://ebayquestions.com/2013/01/22/epacket-delivery-from-china/

$0.98 x 500 = $490 (though I bet he saves a lot on combined shipping, people like buying multiple items when free shipping is offered)

$1,345 - $490=$855 (gross profit after shipping)

I do not know how much the buyer paid for CDs, which he buys in bulk I bet, I would just assume generously that he paid 50% of his sale price (which is ve-e-ery unlikely).

Bottom line: An average newbie Chinese seller with ordinary selling pattern and average assortment of CDs only makes a $500 profit, which is really good for a country with an average $970 monthly salary which Chinese can get in major urban areas only.

Not bad for selling $2,99 discs and offer free shipping, right?

[katrkg2612]

OMG, I just realized probably I should not have included seller's name into post. On the other side, this info is public...

[vintage*finds]

Feedbacks will also indicate how many came from the same buyer ... my earlier point.  They are usually similarly written one after the other.

[katrkg2612]

Yep, and a buyer name on a FB table - though encrypted - also indicates how many came from the same buyer, for example e***r (126) 🙂

[musicyouneed]

I would guess that 99% of the CD's sold from China and Russia are knockoffs.  I follow several forums and this is quite a well known fact.   Ebay should not allow sellers from China or Russia to sell CD's.  Ebay wouldn't allow them to sell knockoff handbags. 

Also most CD's weigh about 150 grams with the jewel case. 

https://www.wsj.com/articles/boost-in-online-pirated-cd-sales-deal-another-blow-to-music-industry-14...

http://forums.stevehoffman.tv/threads/have-fakes-started-to-turn-up-of-the-beatles-u-s-albums-box-se...

[reallynicestamps]

I was wondering about that.

Counterfeiting is another way of lowering one's selling costs.

[Anonymous]

Canada Post is making it very very very hard for the Canadian sellers to sell their items due to Canada Post's gouging hefty rates.

[femmefan1946]

Canada Post is a crown corporation and under their charter are obliged to make a profit, which they usually do.

The profit is then given to the government treasury.

In 2012 Canada Post rebounded to post a profit of $98 million before tax. In 2013 Canada Post lost $37 million overall. The Canada Post group's gross profit in 2014 was $269 million. In 2015, the corporation continued to remain profitable, posting a $136 million profit before tax.

Canada Post - Wikipedia

https://en.wikipedia.org/wiki/Canada_Post

USPS gets a subsidy from the US government.

China Post gets a subsidy (effectively) from every other postal system in the world. The Universal Postal Union is working to correct that.