Authorized Product Resale
While the black market is a marketplace for counterfeit and illegal goods, the gray market facilitates the sale of legitimate, trademarked goods without authorization of the manufacturer. This is often the result of recyclers and retailers who choose to liquidate excess products instead of properly disposing of them, even if they’re contractually obligated to do so. Once goods are bought by liquidators, it’s virtually inevitable that these products will enter the gray market.
Avoid the Gray Market
The gray market has always existed, but with the rise of online sales channels, it now accounts for more than $40 billion in revenue each year. Many of the products sold on the gray market are not representative of the trademarked brand’s quality standards, and are often no longer supported by manufacturer.
When your returned, recalled, or end-of-life products make it onto the gray market, there are a few potential outcomes:
- Your company suffers financial loss due to market dilution and/or safety liabilities
- Your brand equity suffers due to lack of product quality control and diminished brand exclusivity
- Your customers suffer because gray market products do not include warranty coverage, customer support, or easy returns
Maintain Brand Integrity
Authorized resale of excess inventory on the secondary market can be profitable and on-brand when handled correctly. We work with our clients to determine every aspect of the resale process, from selecting the right sales channels, to determining price and product positioning. Plus, Tekovery handles the warranty process to ensure that customers have a positive experience with your product. We ensure quality control so you can maintain brand integrity.