How are people selling at such low prices?

Hi,

I am from India and am selling only in India.

I can’t seem t understand how sellers are selling at such low prices on Amazon.

For instance:

The national shipping charges here are INR 87 for up to 500g

Also there is amazon referral and closing fees which at the lowest would be INR 10.

But sellers are selling products at INR 89, INR 99, INR 109, and some of them are food products that too of 1kg which makes the shipping cost INR 116, and that too many of them are through FBA which although reduces shipping cost but increases in other costs.

I myself was selling a product for INR 149, I have been buying in high quantity so I have reduced the cost now, but some seller started selling it for INR99, and I highly doubt it that they are buying it significantly cheaper as to what I am paying for it, also they are spending extra on their brand packaging which I wasn’t doing.

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I understand selling at a loss in the start to gain value for the listing, but they never increase their rates.

What do you think is happening?

Please share your thoughts and knowledge on this.

Thanks a lot!

Much appreciated!