I recently had a bit of a run in with one of my suppliers, sleepytot. Â They have decided to stop supplying companies who sell their products on eBay and Amazon or those that sell below the RRP. Â I’m not sure if it is strictly speaking legal to constrain the channels which retailers use, or their prices, but anyway, lets look at the two sides of this arguement. I will try, and almost definitely fail to give a balanced view.
The reasons normally given for not wanting items sold on eBay/Amazon are they it devalues the brand, mainly for two reasons
- eBay is seen as disreputable in some way. Â I suppose as eBay sells such a wide range of items including new, old and yes, fakes, it is not seen as the kind of neighbourhood people want their brand hanging out in
- Prices. Â Prices on eBay are rarely the RRP and their don’t want their offline and off-marketplace customers to be undercut.
- They are going to be sold their anyway. Â There is no way they can stop the sale of second hand items
- International exposure. Â A significant propotion of marketplace activity is international
- Search exposure. Â For any given product search, eBay and Amazon items will probably rank quite highly
- Additional sales opportunities. Â The more a product can get in front of customers, the more chances there are for a sale.