Understanding Fragrance Discounters: How Do They Work?

Fragrance discounters are able to sell perfumes and colognes at a discounted price by buying stock from bankrupt stores or buying in bulk from manufacturers. For example, a discounter might buy a bottle of Gucci cologne for $1 from a manufacturing plant, which is then sold to an authorised retailer for $4 a bottle. The retailer will then sell the cologne for $10 a bottle. If the authorised retailer goes bankrupt, the discounter can buy the stock at a discounted price and sell it on.

How do fragrance discounters source their products?

Fragrance discounters source their products in a variety of ways. One way is by buying fragrances from overseas at lower prices. They may also buy wholesale and sell the bottles at a small markup, as in the example of fragranceNet, which buys bottles for $4 and sells them for $5.

Some discounters sell their products online, and it is possible to find reputable sellers and official perfume brands on Amazon. However, it is important to be cautious of deals that seem too good to be true.

Some discounters may also sell older fragrances, as department stores may sell stock to them when they are clearing out old fragrances. However, this does not necessarily mean that the fragrances are expired or smell off.

How do discounters make a profit?

Discounters make a profit by buying fragrances in bulk at a low price and then selling them on at a higher price. For example, a fragrance discounter might buy a bottle of cologne from a manufacturer for $1 and then sell it on for $4, making a profit of $3.

Another way that discounters make a profit is by buying fragrances from authorised retailers at a discounted price and then selling them on at a higher price. For example, a discounter might buy a bottle of cologne from a retailer like Sephora or Nordstrom for $4 and then sell it on for $5, making a profit of $1.

Sometimes, discounters will buy fragrances that are being cleared out by department stores. These fragrances are usually from the previous year, but they can sometimes be up to five years old. By buying these fragrances at a discounted price and then selling them on at a higher price, the discounters are able to make a profit.

Are fragrances sold by discounters likely to be old or expired?

It's hard to say for sure whether fragrances sold by discounters are likely to be old or expired. However, one user on Reddit said that most of the fragrances they bought from discounters were less than two years old, usually the previous year's scent. They had bought some fragrances that were 3-5 years old, but they had never noticed anything smelling off or expired.

Another user on the same thread said that they had ordered three bottles from a well-known discounter and found a metal RFID sticker inside the box saying that the product was packaged for sale at a major store. This suggests that the discounter may have been selling products that were originally intended for sale elsewhere.

The way that fragrance discounters work is that they buy fragrances in bulk from manufacturers or wholesalers at a discounted price and then sell them on to customers at a lower price than authorised retailers. For example, Gucci might subcontract a manufacturing plant to produce a fragrance for $1 per bottle, then sell it to authorised retailers like Sephora or Nordstrom for $4 per bottle. Those retailers then sell the fragrance for $10 per bottle. If a retailer like Sephora goes bankrupt, a discounter might buy their remaining stock of Gucci fragrances for $4 per bottle and sell them for $5 per bottle.

Are fragrances sold by discounters authentic?

Discounters can get fragrances for their inventory in a variety of ways. For example, a discounter might buy fragrances from a wholesaler, who has offloaded their products due to a store going bankrupt. The discounter will then sell the fragrances for less than the manufacturer's suggested retail price (MSRP).

The authenticity of fragrances sold by discounters depends on where they are sourced. For example, if a discounter buys fragrances from a wholesaler, who has bought them from a manufacturer, then the fragrances are likely to be authentic. However, if a discounter buys fragrances from a store that is going bankrupt, or has gone bankrupt, then the fragrances might be authentic, but they might also be old or expired.

One way to check the authenticity of a fragrance is to look for a metal RFID sticker inside the box. This sticker will say something like, “This product was packaged for sale at [major store]. If purchased elsewhere, please call 1-800-555...”. If the fragrance has this sticker, then it is likely to be authentic.

Overall, it seems that the fragrances sold by discounters are usually authentic, but there is a risk that they might be old or expired.

What is the markup between the bulk/overseas price and the retailer price?

It is difficult to determine the exact markup between the bulk/overseas price and the retailer price. However, there are a few examples that can give us an idea. For instance, Gucci subcontracts a manufacturing plant to produce a product. Gucci buys the bottles of cologne for $1 each and then distributes them to authorised retailers like Sephora, Nordstrom or Bobs Parfumes for $4 a bottle. These retailers then sell the fragrances for $10 a bottle.

Another example is that of a whole sale offloading their products onto a discounter like fragranceNet for $4 a bottle. FragranceNet then sells the bottles for $5 a bottle.

It is worth noting that some retailers, like Nordstrom, are known to mark up their prices extremely high. Additionally, discounters may sell fragrances that are older or from the previous year's stock, which could impact the price.

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