THE PRODUCT DIVERSION BUSINESS CHARACTERISES ITSELF IN TWO online retailers that specialize in obtaining products ~ sometimes in large volumes — and re-selling them online at lower costs. These unauthorized sales are commonly taking place on ebay amazoncom’ and among other third-party websites. See A Reselling products offline by salesmen who look to undercut the official sales channels. ‘can often be as simple as cold calling known buyers of a manufacturer's items. STRATEGIC oF www.strategictracking.comUS company "Whizzy Gadget" is planning to move into the European market and forecasts sales of 100,000 gadgets. To successfully center the market a low price point Is. required. HOW PRODUCT DIVERSION WORKS IS AS FO! Ata trade show, Whizzy Gadget meets witha local distributor, "Eurosales" who believes they can sell more, and purchases 150,000 gadgets. www.strategictracking.com Eurosales takes delivery of the units but secretly diverts 50,000 units back to the United States where they can undercut Whizzy Gadget's price and make a substantial profit. *Product diversion can happen to manufacturers who are in either consumer or business focussed industries. Examples of companies who experience product diversion can be involved in the production of: Pharmaceutical & Beauty & Medical Cosmetics www.strategictracking.com