I’m in the market for crewneck sweatshirts, with the ones in my rotation wearing out after a few years of solid wear. (Please send recs my way if you have any! I’m looking for one that’s brushed on the inside, and don’t have wide necks like a lot women’s stuff do these days…)
I googled “crewneck sweatshirt” and Amazon ads were at the top of the results. Multiple ads had Gildan crewneck sweatshirts being sold for $11. So cheap! How is this possible?
See, it takes about $10 to make a single crewneck sweatshirt at large scale like for Gildan. And to make a reasonable profit after taking into account other costs like shipping, you need to charge about $30 at retail. So it’s likely the seller is actually losing money by charging so little. Why would they sell so cheap?
Some of the items for sale on Amazon for very cheap are probably what you’d expect – general overstock or overruns, where the manufacturer creates more items than are needed. The same stuff that’s sold in stores at a lower price – T.J.Maxx‘s whole spiel.
But another common scenario is that something is wrong with the item due to mistakes in production. Nothing is so wrong that it’s unwearable, but there’s an issue that makes it unacceptable for receipt by the customer. It might even be so wrong that they can’t turn around and sell to T.J.Maxx (they probably don’t want Gildan sweatshirts anyway). The seller, probably the manufacturer or someone related, is trying to salvage anything he can, and one way he might do that is to try and sell on Amazon. Let’s see how that might happen.