Toner cartridge sales among “gray market” on eBay

January 26, 2012

Investor Place states that the online auction site has declined of late due to the influx of private sellers that sell in bulk, including the “gray market” of cartridge retailers.

The investor website states that eBay’s early days “were extraordinary”, as it “created a market that monetized everyone’s second-hand merchandise”, but notes that “a lot” has changed, as with eBay’s increased notoriety, more bidding competition has meant people have shifted focus to other retailers like Amazon.

The “indie merchants” that are prevalent on sites such as Amazon have begun to appear on eBay according to the site, and this means that “significant” ‘gray’ markets have appeared. These markets are full of merchants selling the products on “thin margins” at “high volume” – they are selling their products at very low prices in large quantities.

The site notes that one of these significant markets is centred around toner cartridges, with previous reports of counterfeit cartridges being sold on the site, and such products turning the site into one that is less trusted and less used as a result.

eBay CFO Bob Swan stated: “Commerce is at an inflection point. Technology-led innovation…is changing the way people shop. Retail is becoming multichannel, and merchants of all sizes must keep up with changing consumer behaviour.”

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