Online Retailer Worried About Grey Goods

  • Online retailers wants transparency
  • Check conditions before making purchases
  • Check warranties

Australian internet retailer OHKI has today called on the online retail industry to act in more transparent ways and “come clean” with their product sourcing practices, in the wake of the recent announcement the CE entrepreneur Ruslan Kogan is sourcing name brands from third parties.

In a week that has seen public debate arise around the topic of retailers purchasing goods from overseas and re-selling them in Australia as “grey” goods founder and co-director at OHKI, Lucas McEntee, said consumers need to be made aware of exactly where these products come from.

“Grey goods do not guarantee a good deal, they are a hit and miss purchase option and the consumer does not always know where the product has been since leaving the factory floor,” McEntee said. “There are very good reasons why grey importers are not recognised by established brands and it revolves around protecting the consumer.”

OHKI sources its goods through legally approved Australian distributors with all products being supported by manufacturer warranties.

McEntee said while “grey” importing practices may produce fast retail results for retailers, consumers should look in to the purchase terms and conditions before making a purchase.

“Buying grey import goods is the equivalent of buying something off the back of a truck in terms of manufacturer warranty,” McEntee added. “Australian retailers involved in grey importing should come clean and let consumers know where their products are coming from and the risks purchasing their items present.”

McEntee also said OHKI will be in a position to offer more than 11,000 products online by Christmas 2011 and the company will launch a new website by the end of October to meet growing demand.