Wednesday, September 1, 2010

Why Can’t Dealers Sell AMSOIL Products on eBay?

Successful Dealers are constantly thinking of ways to increase sales and promote their businesses, and many ask why AMSOIL policy does not allow sale of AMSOIL products on eBay.

The primary reason why online selling and auction sites are prohibited is to prevent pricing wars.

Because Dealers able to purchase large product quantities can obtain discounts and full commissions, they can sell AMSOIL products at discounted prices. AMSOIL does not want Dealers competing with each other for customers based upon price. That’s why the company established the commercial and retail-on-the-shelf pricing and has policies enforcing those minimums, and why it established wholesale prices for Dealers and Preferred Customers. The one area where AMSOIL does not control price is the price at which a Dealer sells directly to his or her personal customers and downline Dealers. When dealing with someone on a one-on-one basis, AMSOIL Dealers are free to set the price (and their mark-up or profit). Because AMSOIL allows Dealers that flexibility of setting the price at which they sell to their customers, and does not want to change that policy, allowing Dealers to sell on eBay and other auction sites would ultimately lead to price wars online, as was witnessed before the policies preventing eBay and auction site sales were implemented.

Placing an auction on eBay or another auction site is akin to a national advertisement that lists price. To avoid the same price war scenario, AMSOIL does not allow Dealers to place prices in any national advertisements. Only retail-on-the-shelf accounts are allowed to place prices in their advertisements, but because they don’t receive discounts or commissions that help reduce their buying costs, they are naturally forced to set prices higher than the wholesale price (usually at suggested retail prices or higher when taking freight into account). AMSOIL also does not allow retail-on-the-shelf accounts to post prices or sell AMSOIL products online.

In order to protect the business opportunity for all Dealers, AMSOIL policy states that the only place AMSOIL customers can buy AMSOIL products online (where pricing is listed) is the AMSOIL online store or electronic Retail Catalog (G100/G300). This prevents price wars, creates a level playing field for all Dealers and helps assure Dealers receive the proper credit for their customers’ purchases.

AMSOIL Dealers still have plenty of opportunity to advertise their Dealerships online. In fact, eBay has a special section called “eBay Classifieds.” Advertising AMSOIL Dealerships at sites such as eBay Classifieds or Craigslist is acceptable. The same rules apply for ads as they do for Dealer Websites (name, title and location must be present, with no pricing shown). AMSOIL INC. recommends reading through any company or website’s terms of use before creating ads or using any online service. AMSOIL INC. is not responsible for violations of third party policies and takes no responsibility for loss or damages resulting from violations of third party policies.

Although Dealers may sometimes come across eBay listings for AMSOIL products, they can be assured that AMSOIL INC. is monitoring the situation daily and working toward removal of AMSOIL items.

Click here to read an explanation of the difficulties in eBay and auction site enforcement situations and what AMSOIL does to ensure pricing wars never affect a Dealer’s business opportunity. For any questions regarding the company’s eBay policy, contact the Internet Business Registrations & Compliance Department at [email protected].