Eli5: How can sites sell items such as rings or watches for extremely low prices?

Question

Came across some watches on Temu for 1 euro or sometimes less. How do they generate a profit selling these things?
I realise the quality is not comparable to a decent watch, but surely the components cost more than a euro per watch?

In: 1

Answer 1

If you’ll buy a cheap Chinese watch for 1 euro (even if it costs the seller a couple of euros), you’re more likely to buy other cheap junk the can sell at a big profit.