Panasonic, LG Stop Third-Party Marketplace Sales
Panasonic and LG are instituting a policy that will prevent retailers from selling select TVs through third-party online marketplaces. The move should help stabilize prices, increase margins and protect independent CE dealers against cut-rate Internet sales, industry insiders said.
LG will enact its new policy next month with the rollout of its 5700 series, followed by the release of other high-end 2012 models, said Jay Vandenbree, senior vice president of LG's home entertainment sales and marketing. Panasonic confirmed that it will enact a similar policy but would not provide further detail. The policies, in general, are designed to prevent retailers from selling higher-end TVs through third-party marketplace platforms, such as those run by Amazon.com, Sears, Best Buy and, in LG's case, eBay.
"(LG's authorized) retailers can sell online, but they can't list on a marketplace site, which is just a pricing competitive site," Vandenbree said. "Everybody can still sell online, but not as a general flea market. This kind of resolves the downside of the Internet, while embracing the upside."