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by qq66 4297 days ago
These companies are already resellers for the most part. Why not just buy the products directly and compete with them?
1 comments

I hadn't considered this. Certainly a good idea, maybe I am trying to resell from a reseller which already has a tight margin.
Keep in mind that to achieve differentiation, Sparkfun/Adafruit etc. do build proprietary products themselves. Mostly breakout boards and other things that require low capital investment but make the components that they resell (Atmel and TI chips, etc) much easier to use for the through-hole hobbyist. If you don't do the same, you'll probably get stomped by them in the long term, but if you can build a market position in a specific country quickly enough, you can get bought by them instead.
Great insights thanks!