The In Car Experts (ICE) car audio buying/marketing group said it is launching a zero-tolerance policy against retailer members who transshipping product to other retailers.
This week, it will begin notifying offending retailer partners that they must stop or leave the group.
Chris Cook, President of the Mobile Electronics Retailers Association, (MERA), which recently purchased ICE, said, “Retailers will either cease transshipping or no longer be part of the group.” “Try to find another industry where you can get their products on the Internet for half the retail price,” he said, noting it’s relatively uncommon, and the car audio industry should not accept it.
Cook said of ICE’s decision, “It will be a little painful, but that’s okay.”
“There needs to be a higher standard for ICE members,” he continued. “This policy is part of our new membership profile to assure that all of our members are truly In Car Experts.”
Transshipping is when a dealer authorized for a certain brand, resells products to an unauthorized retailer, often leading to discounting of the products, and reducing profitability for all retailers.
ICE is currently speaking with supplier members and evaluating current programs. It will announce new partners and programs in the near future.