geekhack
geekhack Community => Off Topic => Topic started by: Slywanin on Mon, 20 June 2022, 09:40:36
-
Hi Guys!
Questions:
Why do Group-Buys have vendors to fulfill orders?
Why not the Group-Buy (G.B) person who started them just do so directly to customers?
=> Knowing the fact that the G.B starter are the one liaising with manufacturers.
What else am I missing?
-
Only way this would work is if the GB was locked to a single Country, so you don't have to deal with exporting orders to other countries then deal with the tariffs involved in doing so. So, using Vendors alleviates that and they act as a single buying by taking orders within their country/region.
-
Vendors can bring the numbers up to reach cheaper manufacturing tiers.
But also because what you usually get is pile of parts, this is especially true if you need multiple suppliers.
You get one box of switches, one box of screws, one box of plates, one box of feet, etc... and you get to do all the sorting and bagging/boxing. Depending on manufacturer even keycaps can come this way as well. Imagine sorting 2000 sets of keycaps by hand...
Then you get to do shipping.
As a lone individual you're going to pack and pay full price for each and every one while a vendor may pay as little as 10-30% per item and buys supplies in bulk. This goes triple if sending overseas where import duties will absolutely murder you.
People very quickly want to start a buy with no understanding manufacturing and shipping and it can very easily go beyond what one person can handle.
-
Hi Guys!
Questions:
Why do Group-Buys have vendors to fulfill orders?
Why not the Group-Buy (G.B) person who started them just do so directly to customers?
=> Knowing the fact that the G.B starter are the one liaising with manufacturers.
What else am I missing?
To be fair, many group buys are run by a single person and not done through vendors. Vendors have infrastructure to have things machined, ship things, and can reach a wider audience, so it's sometimes a good idea to let the "professionals" handle stuff as you can get cheaper pricing on manufacturing, better shipping rates, etc.
-
A good part of it is, having more outreach/cheaper bulk shipping to regional vendors as well as not being able to handle the shipping yourself. Also vendors big stonks will be able to buy more extras and get product to more people