We’ve all seen them. Great deals at unreal prices whether it’s on eBay, Amazon, Craig’s List, etc. We are shopping online for an item and when we compare prices we are surprised how good the price is from one of the online stores. One example of this is a new scam to sell gray market digital cameras. The objective of this article is to provide information on what gray market cameras are, why you want to avoid buying one and how being informed now can save you a lot of headache and trouble later.

What is a Gray Market?

As online shopping becomes more popular, so do the number of frauds, scams, and questionable tactics that are happening to unsuspecting buyers. One newer questionable practice is the selling of gray market products, which refers to someone selling new goods through distribution channels other than channels that are authorized or intended by the manufacturer.

For example, let’s say that a manufacturer such as Canon makes two versions of the same camera, one to sell in the United States and another to sell outside the United States (for example Japan or Germany). The prices may be very different for these two markets. Some sellers will buy the product where it is available for a less expensive price, then import it legally to the target market and sell it at a price which provides a profit to the seller but which is below the normal market price.

While selling black market products is illegal, selling gray market items is not. Some online retailers will attempt to sell you these so-called "gray market" sometimes under the guise of being "international models" and sometimes with no warning at all.

Why Purchasing a Gray Market Camera Can Hurt You

Many cameras sold now are digital cameras from big-name manufacturers include Canon, Minolta, Nikon, Fuji, Sony, Kodak, Panasonic and Casio. The best-selling digital cameras are the Canon Powershot models and typically you’ll notice that scams happen with some of the best-selling digital cameras. Though gray-market cameras usually have very attractive prices, camera manufacturers typically will not honor warranties on gray market cameras which may come with the manuals written in foreign languages, power adapters that aren't compatible with the target market's country standard power source, etc.. Specifications and components such as video output, electrical adapters and camera drivers are often not compatible in the country other than where it is purchased.The most common problem many buyers encounter is that most manufacturers will refuse to honor the warranty of an item purchased from gray market sources. The manufacturer can identify which type of camera you have purchased typically by the camera’s model number or serial number. They will usually base their refusal for the warranty on the grounds that you bought the camera in a market different than what it was intended for and the warranty applies only to the original country. When you try to go to the subsidiary of the manufacturer in the country for which the item was intended, they (the manufacturer) may deny service based on the fact that the camera wasn’t sold into the correct market. One question that comes up is if the quality of gray-market cameras is worse than buying the right item for your market. Typically, the quality is not, again it is the same camera just sold into a different market. Digital camera knockoffs however would fall into the black market category and are illegal.

How to Avoid Buying Gray Market

Gray Market items can include digital cameras, lens or other accessories. To avoid purchasing gray market merchandise, look carefully at any online offer. If the price is remarkably low, or if there is mention of an international or store warranty instead of a company’s warranty, the camera is probably gray market.

One suggestion is to buy from local retail stores or larger more reputable online stores that have a good reputation. If you are buying online, look for companies that have great ratings and read the feedback from customers. You may also want to ask as many questions about the camera as posslbe by emailing the contact listed on the online store website.

The Bottom Line

When shopping online these days, you need to be informed about frauds, scams and questionable sales tactics. After all, it’s your money and you want to be taking pictures with your new digital camera and not be taken advantage of by a dishonest seller.

I hope you find this guide helpful!  Please remember to check out my eBay store!