Gray market selling becomes a bigger risk as more of a manufacturer’s catalog and pricing become visible online, since unauthorized sellers can more easily monitor and undercut authorized pricing once it is public. Master B2B’s channel strategy research has flagged this as one of the underappreciated costs of moving too quickly toward full pricing transparency without also investing in brand protection and authorized-seller enforcement. Manufacturers managing this well tend to combine clearer contractual terms with authorized distributors, active monitoring of marketplace listings, and a willingness to enforce consequences against unauthorized sellers rather than treating gray market activity as an unavoidable cost of doing business online.
Unauthorized distributors / gray market
Sellers who offer a manufacturer's products without an authorized distribution agreement, often sourcing inventory through indirect channels and undercutting authorized partners on price.
Learn more:
The End of Channel Dependence