How to Prevent Grey Market and Diverted Goods From Undercutting Your Prices on eBay

How to Prevent Grey Market and Diverted Goods From Undercutting Your Prices on eBay

Let’s say your brand is sold on eBay.com.  To monitor your products, you frequently check eBay. You notice that there are regularly many products listed on the website for much less than your MAP prices.

Unfortunately, there is no magic solution to fix this problem.  Instead, we recommend that brands implement integrated enforcement systems to thwart unauthorized online sales.

Regardless of the actual volume sold or displayed eBay, a brand that is concerned with its products being impermissibly sold should utilize a monitoring service. A good price monitoring service can find sellers and list them based on price, volume and location. This is the most scalable way to stay on top of the marketplace.

By identifying the offending parties (even if just by user name or email address), this is a good starting point. From here, you can begin implementing a

  • sending the actual draft complaint that they are prepared to file;
  • actually filing a lawsuit;
  • getting a temporary restraining order to freeze the seller’s PayPal account (if using eBay, for example); or
  • getting the seller to transfer his or her domain if selling from an independent website.
  • The key is having a system to do this efficiently and start with the least costly enforcement tools and going up the ladder as necessary.

    xs
    sm-768px
    md-992px
    lg-1200px