Ever Heard of Hour Loop, Inc?

Had a request to partner with Hour Loop, Inc (HOUR) for vendor relationship between us and Amazon Seller.

Anyone ever heard of or used them?

Cheers!
Ryan

They are an Amazon seller, I believe those requests are just wholesale requests so they can hop on the listings with you.

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Had a request to partner with Hour Loop, Inc (HOUR)

Heard of them. Can’t stand them. They destroy the price on everything.

They’re like a consolidator, I think. You send them your merchandise, they ship it to Amazon under their FBA account, and sell it for you, probably for some kind of commission. They have like a gazillion feedback, and some special privileges, apparently, because they manage to take the Buy Box even when they don’t have product to sell.

You know, like this crap -

Other sellers lose the Buy Box to their ‘out of stock, you’ll never get it, but we don’t care because we’re Amazon’s favorite’ offers. :roll_eyes:

It might benefit you as a seller to hop in bed with them, but my personal opinion is I can’t stand them for the damage they do to brands (don’t follow MAP, and cheapen the perception of value by selling at near-wholesale retail prices), other sellers (can’t make a profit when Hour Loop sells at giveaway prices), other sellers again (can’t win the Buy Box because Amazon prioritizes Hour Loop)…

They’re also publicly traded, and if their stock goes up, I might buy some, as a way to get back some of the money they’ve caused me to lose. :laughing:

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Agreed. I actually know for a fact that they don’t have a good relationship with some manufacturers. For example, I was in a call with the National Sales Manager of one of the largest pen manufacturers in the US last week, and he told me that they’re probably going to ditch them as a buy-direct dealer, because of their tendency of coompletely mess up the marketplace, as @Roxy explained, and complete lack of interest in fostering and maintaining good relationships with vendors.

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he told me that they’re probably going to ditch them as a buy-direct dealer, because of their tendency of coompletely mess up the marketplace

Thanks for posting that. It’s good to get confirmation that my observations as a simple end-user are correct.

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Go see how many September 25 reviews they have :flushed:

https://www.amazon.com/sp?ie=UTF8&seller=A1TWYVWG4QDVKK&asin=B09T5JC5Z1&ref_=dp_merchant_link&isAmazonFulfilled=1

The most recent reviews are dated tomorrow September 26 which implies that they were posted by “buyers” from overseas.

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They have one bad review from the future and they already have it crossed out. How is this possible?

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Buying big volumes at a deep discount then undercutting everybody else who’s paying more is a decent business strategy, but a TERRIBLE brand “partner.” Anyone who cares about channel management at all will cut them off fairly quickly.

Though I could see a way a manufacturer could make this work in their favor. Get these guys and all the other sellers on Amazon to race to the bottom (and get some of them to sell at a loss), the low price will help build up the sales ranks on the ASINs, then give hour loop and all the other resellers the boot and get on the ASIN by themselves and then hike the price over time.

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They’re not even getting deeper discounts than other sellers on —at least— some of the products that they carry, like the pens that I made a reference to in my previous message.

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They’re not even getting deeper discounts than other sellers

They use an automatic repricer that seems to be tied to the manufacturer/brand’s current price list, not to what HL obtained the product for.

For instance, I’ll see them on an item where the wholesale price might be $20 and HL lists it for $33. Eventually, the manufacturer might discontinue that item and drop the price to $6 to blow them out. HL will then drop his FBA inventory (already in the warehouse, from a previous purchase made before the price drop) to $8.

So it appears he isn’t pricing according to what he paid for his inventory ($20) but according to what he, or someone else, might be able to replenish the item for now ($6). It’s an interesting strategy, because it’s a guaranteed loss on anything he has in FBA.

I don’t really understand what he does, I just know to avoid him, and any listings he’s on, when I see him. :laughing: Since it does appear that he is consolidating other people’s merchandise under his Amazon account, it makes the stupid low pricing even more puzzling. By bringing HL into the fold, you’re adding yet another person who gets a cut of your sale, so it would seem his account should be pricing higher, not lower.

He must be selling a good chunk of products at a loss, which is good (ish) for customers, but what is the point?

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