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0 pointsClosi3y ago0 comments

> For the vendors that don't sponsor, you don't know whether the amount they save goes into a higher quality product.

For the vendors that don't sponsor, you don't know whether the amount they save goes into a higher quality product. Maybe it did, maybe it didn't.

But for the vendors that DO sponsor, you definetly know that the money didn't go into a higher quality product.

Some eCommerce companies who are agressively using Google/FB/Social will spend 30%+ of their revenue just on online/influencer advertising (based on companies I have worked with).

0 comments

cetahfh146153y ago

You're not wrong, main difference is between big companies vs smaller ones. Big name brands can afford to shell out more, but sometimes you see the smaller shitty dropshippers trying to get more visibility by hyping the hell out of a sub par product

otabdeveloper43y ago

Spending more on marketing allows them to increase renevue and lower their per-unit margins, leading to more investment into research and development.

Theoretically, at least.

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