Dr. Joel Schlessinger discusses product diversion with PRIME Journal
Skin care products often pop up on Amazon and eBay at a bargain price. If the deal seems too good to be true, that’s because it is. These products are usually expired or out-of-date merchandise that has somehow shifted away from the intended distribution channel. In a recent PRIME Journal article titled “The Inconvenient Truth About Product Diversion,” Dr. Joel Schlessinger shares how this practice has hurt the skin care industry and what manufacturers are doing to stop it.
The skin care industry has been fighting product diversion for years, Dr. Joel Schlessinger explains.
Manufacturers and skin care professionals do what they can to stop products from being diverted, but they can only do so much, says Dr. Joel Schlessinger.
“Product diversion has always been a problem for some companies, but the newest challenge is their emergence on Amazon and eBay and the limited, if not zero, assistance these companies provide to deter this situation,” he says.
With Amazon recently launching its own skin care section, the company is taking action against select unauthorized sellers.
“Recent initiatives by Amazon clearly show that they are aware of this issue, but choose not to take stolen or diverted products off their site except if retailers ‘play ball’ with them by allowing Amazon to sell their products,” says Dr. Joel Schlessinger.
“This clearly doesn’t pass the ‘sniff test’ in many retailers’ minds who go through appropriate channels to purchase and sell their products, yet are competing against grey market products.”
Many manufacturers are taking steps to stop diversion, says Dr. Joel Schlessinger.
To ensure only quality products make it to the consumer, some companies are implementing steep penalties for products that are diverted to other channels. Others are using special tracking codes so they can track exactly who bought what product. This way, they can trace diverted products directly back to the source.
Do you have a question for Dr. Joel Schlessinger? Share with us in the comments.