|Tue Feb 18 2014 16:58:33|
Should Brands Like Lululemon Ban eBay Resellers?
By: Ina Steiner
Lululemon banned certain customers it said were reselling its products on eBay but later apologized, according to a report on CTV News. According to the company's reselling policy: "We completely recognize that once someone purchases our product they can do what they want with it. We do not, however, support those who acquire large volumes of our product to resell at an elevated price point."
The company told CTV News it had gone too far in enforcing the policy and was in the process of reaching out to apologize to those impacted.
On Facebook, fans weighed in on the issue. Many comments suggest the company frequently runs out of stock on new items, and some suggested that practice encouraged the practice of buying quantities of items to resell on eBay. Wrote one Facebook fan:
"Another perspective on the reseller issue... On one hand there is nothing wrong with reselling the occasional item that you no longer use, doesn't fit etc. However I don't think this was the intent behind Lulu's new policy. It was to address the issue of eBay resellers trolling Lulu related blogs for highly desirable/anticipated items, then buying up product in bulk, jacking up prices and creating scarcity for Lulu customers. The recent Gratitude Wrap is an example. It sold out within hours of release, however within days over 80 showed up on eBay by individual sellers selling multiple sizes and colours. Lulu's policy may have angered some, and unjustly impacted innocent customers and this is unfortunate. Although it needs fine tuning, they were responding to customer complaints about the issue. With apologies for the loooong comment."
Another customer wrote, "You guys SUCK. You have a problem of resellers because you don't make enough of each item! Tried to buy camo speeds and surprise surprise, by the time I was finally to a point where the site would function, they were sold out. Ridiculous."
Some suggested Lululemon limit the quantity customers can purchase. "Ya simple maybe if they don't want one person buying bulk items they should limit the quantity of a single item that can be purchased or maybe they should realize that when they only make so much it's going to be driven by supply and demand. If they want to stop the reselling then they need to make more however that seems to be the driving force of their sales and prices. They know people will buy what they like for ridiculous prices online when it comes out because if u don't buy it right away you won't get it. It's a catch 22."
As online sellers, what do you think of companies that try to ban customers from reselling products? Does it make a difference if it's a regular customer or a reseller? And should companies impose limits on the quantity a seller can buy of any one particular item?