Value Added Resellers: The eBay Grey Market Connection

[mandy]

The alternative sourcing distribution trend is paying off for eBay. With more solution providers shopping for the best price on the Internet, eBay has become a significant source for product for a number of VARs...

“I source through eBay once in a while,” said one solution provider, who did not want to be identified for fear of retribution from his authorized distributors. “EBay is just an extension of the gray market.” One difference, the solution provider said, is unauthorized distributors like Arbitech have more credibility than eBay, even though eBay has a rating system aimed at weeding out fraudulent suppliers...

Tom Derosier, co-owner of CPU Guys, a Hanson, Mass.-based system builder, said he will not source new boxed product from eBay because he can’t verify where it came from...

full article: http://www.crn.com/sections/news/top_new...=180203850

[mandy]

A related article:

CE distributors and resellers are haemorrhaging profit as overseas and domestic-based eBay sellers flog unauthorised and unwarranted goods on an auction web site that police say is attracting criminal elements from Australia and Overseas selling stolen CE merchandise.

In many cases, distributors can't sell products to their retailers as cheaply as the Internet traders are selling via eBay. In addition some CE distributors are finding goods on eBay before they have them in stock for distribution in Australia. The problem is so bad that Sydney-based distributor, Hi Fi & Video Marketing, has asked its...

full article (registration required): http://www.smartofficenews.com.au/Comput...s/G8G9L6D2

[bargainbloodhound]

unauthorized distributors like Arbitech have more credibility than eBay, even though eBay has a rating system aimed at weeding out fraudulent suppliers

eBay's rating system has a few major flaws and often doesn't reflect reality. Case in point: ex-eBay sellers Glacier Bay had a feedback rating of 270,000 with 98.9% positive.  If buyers had looked at their BBB rating they would have seen a business with an F rating (on a scale where AA is highest).  Obviously one of those rating systems isn't too accurate.