Electronics Market - Fake, Grey, Unauthorized

spotlightdvd · 13-02-2006, 08:21 PM

I've been on this and other wholesale forums for a while but I can't find consistent clear info. on the electronics market. Some people say major retailers pay near-retail prices for their electronics yet reliable dealers with good reputations on this forum get them for less in lower quantities? There's fakes and grey market goods all over the place but how do you identify them.

I know there's a lot of expertise on this forum and I think I and others would really appreciate some responses to the following questions:

1. How do you identify grey market goods? Or grey market sellers?
2. Do you need to be an authorized reseller with companies like Apple and Sony just to sell their products or just in order to buy from them?
3. Is anything not bought through a major distributor by definition grey market? If, for example, factories in China are manufacturing goods for Apple don't all the goods go to Apple distributors? (Hence anything "direct" would be grey market/unauthorized).
4. How do the dealers on this forum ensure or guarantee they're getting legit, authorized products? How do they get prices so far below what retail chains pay? (Not looking for trade secrets, just assurances).

I suspect the replies will show the confusion and mixed answers I've experienced. Some people say all the goods on these forums are grey market and you can't get Ipods for <$200 because Walmart pays $247 and buys way more than anyone here can move. Others obviously believe you can get legit product factory direct in huge quantities that Apple or Sony would clearly notice.

What's the bottom line guys? None of us want to get sued for copyright infringement or selling illegal imports, or worse go to jail. There's clearly huge volumes of business going on here but before I jump in I think I and others really need clear answers to what's going on.

Thanks a lot to all who respond!

Jon C.

ppisklak · 26-02-2006, 10:03 PM

Great questions - I would like to see some mods or other experienced members shed some light on these subjects.

matt_16288 · 26-02-2006, 10:13 PM

Good post.....Hope we get some answers!

guru4us · 26-02-2006, 10:15 PM

just subscribing for this thread for now...i'll post a reply to all your questions later today or tomorrow..(busy at the moment)

TTTrades · 26-02-2006, 10:35 PM

I see Harry is going to answer the questions, but I can add one point.
You can not compare Retailers like Walmart to Resellers like the ones you will find on this site. Large Retailers use just-in-time inventory principles for their supply distribution and fulfillment. This does make their cost per product higher, but since they carry so many products they save money on inventory and storage.

Boro97 · 26-02-2006, 11:13 PM

If you use do a search you will find that grey market goods and simliar qustions to yours has been covered before good luck there is plenty covering the subject

ppisklak · 27-02-2006, 12:00 AM

Thanks for the reply. I did a search and didn't find answers to my exact questions. I have learned so much from this forum already and I look forward to Guru's expertise!

omidlk · 27-02-2006, 02:51 AM

Great questions Jon. dont mean to hijack your thread but though it would help to add a question about the warranty to your questions. Hope someome can comprehensively repond to them all.

1- Do grey market products come with a valid warranty? As far as I know, the products are serialized in a way to differentiate the countries they are supposed to be distributed in. So if you buy an imported iPod meant to be distributed in a country other than the US, Apple USA does not grant the warranty. (please correct me if i'm wrong).

2- But more importantly, when you buy a product, your product has to be sent back to the manufacturer along with your Dated Proof of Purchase from an Authorized Dealer in order to get a valid warranty

For example, if you buy say 50,000 ipods from an authorized Apple reseller in the U.S., you have the dated proof of purchase from this authorized reseller and therefore you can claim a warranty. But when you sell it in smaller quantities, how would you transfer the warranty to the next buyers? I believe that no wholesaler in the distribution channel would need to care about this but the problem arises only when you are in the last chain and you want to retail it to the end-customers. If this brand new ipod is defective, how can your customer send it back to Apple for repair under warranty???!!! Even if you give a receipt to him/her, it's not acceptable by the manufacturer as you're not an authorized dealer. Any help or comment on this is appreciated.

simone17 · 27-02-2006, 04:12 AM

Advanced search comes up with this-

http://www.thewholesaleforums.co.uk/...searchid=65842

One or two of those had some pretty good info. Not sure whick ones though. Try this one.

Brokers

Chris

bizaustin · 27-02-2006, 07:36 AM

Hey omidlk,

We already discussed the warranty issue in the iPod group buy thread. These talks are not directly related to grey market, but you can find some useful info's. I believe Harry will give us more detailed explanations. Check out these search results.

http://thewholesaleforums.co.uk/foru...anty#post22589
http://thewholesaleforums.co.uk/foru...anty#post23023
http://thewholesaleforums.co.uk/foru...anty#post23563
http://thewholesaleforums.co.uk/foru...anty#post26070