Panasonic, LG Stop Third-Party Marketplace Sales
"A lot of the vendors view third-party marketplaces as one of the primary points of instability in the market," said Dave Workman, executive director of the PRO Group. "It's a harvesting channel that doesn't create any more business. Instead, it creates this 'race-to-zero' mentality, and the manufacturers said 'Well, we're gong to stop it.' You get 10 retailers in the 'buy box' and it's like a Dutch auction. It's a bid to 0."
Workman said he'll try to convince the manufacturers to allow PRO Group dealers to sell on eBay's marketplace, which he considers to be a different type of platform than one operated by a retailer, such as Amazon or Best Buy. Vandenbree said he's willing to listen, but for now LG's marketplace policy will include eBay.
"Sites like eBay just seem like a place to park product. Anything that resembles the downside of a marketplace is not something we'd be willing to support at this time," Vandenbree said. "But we want to help dealers and we are willing to talk about it."