|Thu July 5 2012 15:52:37|
What Do You Think of the Adidas Ban on eBay and Amazon?
By: Julia Wilkinson
Adidas announced it will ban its dealers from listing its products on marketplaces eBay and Amazon starting in January 2013. As reported in this EcommerceBytes article, part of the problem seems to be a brand's lack of control over the customer buying experience on these large marketplaces, and a downward pressure on price.
Knockoffs can also be an issue, though eBay got props from Wes Sheperd, CEO of Channel IQ, for its Verified Rights Owner (VeRO) program, as well as pricing transparency and willingness to work with manufacturers to address problems on its marketplace.
Another phenomenon apparently bugging manufacturers is the practice called "showrooming," where a buyer may visit a bricks-and-mortar store to check out a product, but then uses their mobile phone to scour the Internet for the best price, and winds up buying it online.
Amazon is cited as a culprit for the downward price pressure, allegedly resisting minimum advertised price (MAP) policies -- as when it does not show the price openly on a page -- with some complaining that these policies are difficult to enforce or enforced unevenly.
Do you worry about this trend of brands banning sales on big third-party marketplaces like Amazon and eBay? Is Amazon "too big to ignore"? Have you ever had Amazon itself undercut the price of a new item you sell? And do you sell the types of brands you think are likely to be affected by companies instituting such policies, such as other footwear brands, luxury goods, apparel, or even consumer electronics? Post a comment here!