We frequently see companies affected by gray market imports and diverted sales. The gray market is caused by opportunistic importers who purchase a company’s products abroad and import them into the U.S. without authorization. For example, a manufacturer may see its own products sold on eBay, Amazon or Alibaba, or by other unauthorized retailers. This causes dissatisfaction among their sales representatives because their own products are being sold on internet marketplaces by unauthorized merchants, often at lower prices but potentially without product safeguards and warranties.
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