(1) All our goods are purchased directly from the factory. In this way we can cut out a great deal of unnecessary expenditure by removing intermediate agencies, such as exporters, importers, wholesalers, retailers and so on. Thus we save a lot of money for our customers. This will save about 25% of the retail price.
(2) We purchase large quantities overstock products in the off-season at a very low purchase price, because a huge single purchase can get a very good discount, our procurement cost is about 70% of others. Thus we save another 10% of the retail price. These products are mainly hot-selling products which are over-produced by the factory. We guarantee no quality problems exist, as we have a series of quality control process.
(3)We use Web sales, instead of store sales. Thus we cut out the high cost of store rental and sales staff wage costs. This will save about 15%of the retail price.We use standardized packaging, which will reduce packaging costs. What we use is very standardized, low-cost, and environmentally friendly materials. This saves about 10% of the prices.
In view of the above cost reduction activities, we are able to sell at about 30% to 50% of the stores retail price, which will save you 50% to 70% of the total price.