How online shopping website selling products at 1/10 of market cost?

[anuj_srmsmi]

websites like "Shop clue s" ,
"desi dime" etc are selling 500 rupees of socks, shampoos, soap, and many other items in less than 100Rs/- and some times less than 10 bucks. WITH FREE HOME DELIVERY.,
how is it possible? Are the brands are not original or they are selling used products..
if possible i am expecting answer from IT manager/ IT economist..

[Daniel Bradley]

I am neither of the two...but I believe they can sell way below cost because they don't have to mark up the price to make a profit(aka no overhead)

No store = low monthly bills/ no rent/ electricity/ employees(and their benefits)/ no cleaning

a small warehouse could serve the same population that a chain of stores serves...

because it's online it can be GLOBAL and not local

No money spent on advertising because if they are the cheapest people will come to them

[PATMAN]

The merchandise is fake or they rip you off on shipping.

Sorry, but I only went to Stanford for MBA.

[Dani]

Simple! They don't have lot of investment, which interns reflects in product cost.