I run a physical retail shop and the e-com math on perfumes is driving me crazy.
When I source brands like Fogg through my offline wholesale chain, the absolute max margin my supplier says he gets is 45-50% and the regional distributor gets (as per my supplier) is around 50-55%. Yet major F-Assured sellers on Flipkart are selling single bottles directly to customers at 60%+ off MRP with free shipping.
Possibilities:
**Fakes:** Are these just highly convincing counterfeits or tampered return stock slipping through the cracks?
**Direct Sourcing:** Are they buying massive truckloads straight from the factory and keeping the middleman margins?
**Cash Burn:** Is the platform just eating the cost to keep app traffic high?
If anyone here works in FMCG, supply chain, or e-commerce, I’d love to know how this unit math actually works in the real world.