why is buying from a vendor so much cheaper than from a company’s website?

Question

Let’s take Samsung for example. Buying the S23 ultra from samsung’s website (Kuwaiti region) costs around 417 Kuwaiti Dinar (≈350 after discount). However, buying the same exact phone from a vendor in Kuwait costs only 220KD. Almost half the price.

I understand that large vendors benefit from economies of scale but the difference is huge! Why is that?

In: Technology

Answer 1

Most manufacturers need a distribution network and don’t really sell that much direct to customers.

In those cases, their own website is simply there to provide a price umbrella for their distributors.

You have now in mind that the “real” price is 417 Dinar, and any vendor is cheaper.