How does Amazon able to offer such cheap prices?
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  1. #1
    Member scooby's Avatar
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    How does Amazon able to offer such cheap prices?

    I have purchased a lot of my watches from Amazon.com. Most have been perfect, brand new watches. Some have arrived with damaged packaging, or a scratch on the watch here or there. My recent purchase from Amazon, a Tissot T Touch 2 was priced $150 cheaper than my local AD could do, even with a 25% discount. I would love to purchase from an AD, but Amazon is so much cheaper in many cases. My question is, besides not having to pay for a brick and mortar store etc., how does Amazon offer such low prices. How do they get a hold of these watches? Are we sometimes getting a watch that has a minor blemish or damaged packaging that cannot be sent to an Authorized Dealer? My Tissot arrived nearly perfect except for a tiny, tiny, nick in the bezel. I was a little bummed out until I looked at the ones at my local AD and their T Touch's had even more blemishes on them. A local AD only sells the watches they have in their cases. Those watches are handed over to 20+ people a day to handle. How many times are those watches dropped, dinged, or banged against something. I don't think I'm getting a better watch from an AD than I would from an online dealer. Thoughts
    Last edited by scooby; May 4th, 2011 at 19:14.
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  2. #2
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    Re: How does Amazon able to offer such cheap prices?

    I'm pretty sure that people have their own amazon stores and amazon is just providing a high traffic website to entice them to come aboard. These people get to use the amazon name and traffic to sell items and I would imagine amazon gets some percentage of their sales. These people that are doing the selling are likely getting the watches at or near cost and increasing that price so that they make money but still keep it below the msrp. It is a win win for all parties involved.

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    Re: How does Amazon able to offer such cheap prices?

    I'm pretty sure that Amazon is using lower margins and buys/sells in bulk ala Wally-world (Walmart). That is stritctly my speculation, I really don't know. I've got some great deals on watches from them. I think depending on the price it's worth it. If your gonna grab a gshock or something under $500 USD or so then I think it's worth it. I would not buy a $3,000 USD Omega online via Amazon. That's just me though. I feel that you get added benifits when buying from an AD.

  4. #4
    Member ari.seoul's Avatar
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    Re: How does Amazon able to offer such cheap prices?

    Amazon (shops) and grey market shops do not have to sell them at a price set by the manufacturer

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    Re: How does Amazon able to offer such cheap prices?

    There're re-sellers and therefore, "used", hence - no factory warranty.

  6. #6
    Member John MS's Avatar
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    Re: How does Amazon able to offer such cheap prices?

    Quote Originally Posted by scooby View Post
    I have purchased a lot of my watches from Amazon.com. Most have been perfect, brand new watches. Some have arrived with damaged packaging, or a scratch on the watch here or there. My recent purchase from Amazon, a Tissot T Touch 2 was priced $150 cheaper than my local AD could do, even with a 25% discount. I would love to purchase from an AD, but Amazon is so much cheaper in many cases. My question is, besides not having to pay for a brick and mortar store etc., how does Amazon offer such low prices. How do they get a hold of these watches? Are we sometimes getting a watch that has a minor blemish or damaged packaging that cannot be sent to an Authorized Dealer? My Tissot arrived nearly perfect except for a tiny, tiny, nick in the bezel. I was a little bummed out until I looked at the ones at my local Macy's and their T Touch's had even more blemishes on them. A local AD only sells the watches they have in their cases. Those watches are handed over to 20+ people a day to handle. How many times are those watches dropped, dinged, or banged against something. I don't think I'm getting a better watch from an AD than I would from an online dealer. Thoughts
    C'mon...I think you know the answer.
    Brick and Mortar dealers offer service and accessibility in a small relatively inefficient store while Amazon offers few services through a warehouse operation and is able to cut price. Also some of the stuff Amazon sells directly is grey market and sold sans warranty. Amazon offers a lot of merchandise as a broker rather than seller and all of those watches are grey market. Were you aware of that? Have you thought about how many times watches and other items are returned to Amazon only to be resold after having a minimal inspection?

    So tell me. Did you try several watches at your local dealer on more than one trip but then buy the watch from Amazon? Did you give your local dealer the opportunity to bid agianst Amazon?

  7. #7
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    Re: How does Amazon able to offer such cheap prices?

    There's isn't much 'overhead' for a cubicle.
    Quote Originally Posted by John MS View Post
    C'mon...I think you know the answer.
    Brick and Mortar dealers offer service and accessibility in a small relatively inefficient store while Amazon offers few services through a warehouse operation and is able to cut price. Have you thought about how many times watches and other items are returned to Amazon only to be resold after having a minimal inspection?

    So tell me. Did you try several watches at your local dealer on more than one trip but then buy the watch from Amazon? Did you give your local dealer the opportunity to bid agianst Amazon?

  8. #8
    EHV
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    Re: How does Amazon able to offer such cheap prices?

    Amazon is gray market for most watches. Gray market is usually less expensive but cannot offer manufacturer warranty or any of the other "perks" that come with an AD. They usually offer their own, similar warranty which can be fine....or not. Also, some manufacturers refuse to service gray market watches if not purchased from an AD. That is rare as long as the serial # is intact and you are willing to pay for the service from them. Don't forget, there are independent watchmakers who will service the watch.

    Amazon IS an AD for certain things like G-Shock.
    Search here for gray market. It's not always evil and the pieces are not always refurbished, damaged, "used" or problematic.

    Many, many have had perfect success buying gray market. You have to choose if the benefits outweigh the risks.
    Amazon, unlike a lot of other gray market places, has a fantastic return policy so if you have an issue, you can send it back right away as long as it's not used, sized, etc.

  9. #9
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    Re: How does Amazon able to offer such cheap prices?

    Since it was referenced several times in this thread, what are the additional "perks" offered by and AD. Where I live, there are very few AD's for anything, they know it, they charge full price and don't negotiate. There is one Tissot AD nearby, but the next one is 2 1/2 hours away. I would have to drive several hours to get to and AD for something like Omega or Rolex. Would it be worth it?
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  10. #10
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    Re: How does Amazon able to offer such cheap prices?

    You can always call an AD and if they know your serious, you can haggle.
    Quote Originally Posted by corn cob kid View Post
    Since it was referenced several times in this thread, what are the additional "perks" offered by and AD. Where I live, there are very few AD's for anything, they know it, they charge full price and don't negotiate. There is one Tissot AD nearby, but the next one is 2 1/2 hours away. I would have to drive several hours to get to and AD for something like Omega or Rolex. Would it be worth it?

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