EBay is a 4 letter word for some wholesale suppliers and some do not allow their products to be sold on eBay. Why is this? After all, who would turn away a sales channel of 140 million buyers? The reason some suppliers forbid their products from being sold on eBay is to protect the price structure of the product line. eBay has a reputation as the ‘bargain basement’ of the web and some suppliers fear that the market strength of a product line will erode if it is placed on the eBay Marketplace.
If you’re selling products in your home-based business, it pays to be aware of what your supplier policies are with respect to eBay. Often this subject is mentioned in their policy using the term ‘online auction’ which covers not only eBay, but all auctions sites (including Overstock and Yahoo! auctions). Read their policies carefully and if their policy on this subject isn’t clear, ask someone. If you’re establishing new suppliers, it’s best to learn early on what their online auction policy is so that you’re aware of this restriction.
Fortunately, suppliers that restrict online auction sales are a relative minority. Most suppliers either embrace eBay or simply see it for what it is: a huge sales channel with lots of potential. But if online auctions are part of your plan for selling products on the web, be aware of any restrictions that might exist in your supply chain.