- Jan 2, 2006
- 10,455
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I'm trying to understand how all this stuff works. I'm trying to go through this logically but I've got some unanswered questions, and don't really know where to go for information:
Let's start with a company, say Canon's digital camera division.
1. Canon manufactures their digital cameras.
2. Canon sells their cameras to big businesses like Walmart, B&H Photo, Circuit City, local camera shops, etc.
Since Canon already has so many sales to established dealers, how do their products get into the hands of little people like eBay sellers or start-up internet retail companies?
Basically I'm asking:
Do wholesalers of genuine Canon cameras even exist?
Does Canon actually sell to wholesalers, who then in turn sell to dropshippers, eBayers, small businesses, etc.?
My problem with the above is this: If Canon were to sell to wholesalers who in turn sold to smaller businesses, those smaller businesses have no formal business ties to Canon itself, meaning they are not registered dealers of Canon merchandise, and Canon has no control over the quality of service that these people provide, BUT Canon must still honor warranty and repair requests for the products sold by these people. Why would Canon allow this?
I once talked to a official Canon representative about a big online company who did not adhere to Canon's dealer pricing policies. Let's call it XYZ Retailer. Canon said that they had no idea where that company was getting Canon products, and so they have no control over that company's policies.
So how did that company get Canon products? Can someone outline the supply chain, from Canon manufacturing to XYZ Retailer? How can Canon just seemingly lose track of so much product?
Let's start with a company, say Canon's digital camera division.
1. Canon manufactures their digital cameras.
2. Canon sells their cameras to big businesses like Walmart, B&H Photo, Circuit City, local camera shops, etc.
Since Canon already has so many sales to established dealers, how do their products get into the hands of little people like eBay sellers or start-up internet retail companies?
Basically I'm asking:
Do wholesalers of genuine Canon cameras even exist?
Does Canon actually sell to wholesalers, who then in turn sell to dropshippers, eBayers, small businesses, etc.?
My problem with the above is this: If Canon were to sell to wholesalers who in turn sold to smaller businesses, those smaller businesses have no formal business ties to Canon itself, meaning they are not registered dealers of Canon merchandise, and Canon has no control over the quality of service that these people provide, BUT Canon must still honor warranty and repair requests for the products sold by these people. Why would Canon allow this?
I once talked to a official Canon representative about a big online company who did not adhere to Canon's dealer pricing policies. Let's call it XYZ Retailer. Canon said that they had no idea where that company was getting Canon products, and so they have no control over that company's policies.
So how did that company get Canon products? Can someone outline the supply chain, from Canon manufacturing to XYZ Retailer? How can Canon just seemingly lose track of so much product?
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