This review for XA-Electronics reminded me of another store review I did a few days ago for The Honey Roasted Peanut. I have never actually purchased anything from either of these two stores. They do seem to have very low prices on a huge selection of items though. Click on the blue link above to check out their current deals and promotions.
The prices at XA-Electronics are extremely low. And on top of that, they also provide free shipping. It almost seems to good to be true. Taking a look at their feedback, they have a 99.5% positive rating, and in the past month, they have about 26,000 positive feedback, compared to just 255 negatives. So obviously they are doing something right.
And yet you still look at their pricing and wonder what is going on? Are you really going to get the item you ordered? Is it going to be a brand new item and/or authentic? Am I just ordering cheap Chinese electronics?
It seems to me like their products are coming from some sort of electronics drop shipper. It’s really hard to offer thousands of products over a wide variety of categories unless you are a drop ship seller. Which isn’t to say that there is anything wrong with drop shipping – it’s just an observation. Electronic distributors usually have a ton of money invested in their inventory, and don’t really branch out to other categories, like for instance clothing, or health & beauty. So when you see a wide variety of products, you can be pretty sure that the product is coming from a vendor, and not the eBay seller.
With your average China dropshippers, the supplier or manufacturer basically ships the item on your behalf….from China. And that extra shipping cost makes it hard to compete at the price level. Which is something of note because of how low the prices are at XA-Electronics. This does rule out the cheap electronics from China theory. Not that they products weren’t originally manufactured in China, but that they aren’t using a China drop ship vendor.
At first glance, it seems like either they are running a scam, or they are making no profit at all. Their feedback score debunks the scam theory. At the same time, they have over 565,000 positive ratings. It’s impossible to survive that many transactions if you’re not making money. So what gives?
They could be selling overstock electronics. Or even worse, closeout electronics. But they have a steady inventory presence, so those two are ruled out.
The probable answer is that they are selling in volume, and making a few pennies or dollars on incentives. For example; if you have a credit card with a 1 or 2% cash back rebate, you earn that 1 or 2% on each purchase. So even if they are selling their products at a break even price, they still profit off of the 2% cash back rebate. That might not seem like a lot. But after 30,000 sales a month, that really adds up. And if you can obtain Top-Rated status (which they have), you get another 20% rebate on your eBey selling fees.
And that’s just one way. You can also use these ebay listings to drive traffic to your own website where the margins are actually greater. You can redirect these sales to an Amazon FBA seller with free Amazon Prime shipping. Basically they play the redirect game, you get the savings.
All of this to say…I would not have an issue with purchasing from this store. They do have a very high feedback percentage. And they do have Top-Rated status as a seller. So they must be sending out the right products, very fast, and with a very small percentage of defects. Take advantage of their rock-bottom deals while you can, as you never know when the prices will go up.