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

hey I want to buy a thing. Sure, here is the cost to produce it plus the cost to ship one thing and also make a profit

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hey I want to buy 5,000 of the thing. The material and labor costs are the same but shipping is less and it is likely that the selling entity will offer a discount