Online resales worry retailers

Online resales worry retailers,[link widoczny dla zalogowanych]
Triss Budoff of Houston spent about $1,000 on 25 Rafe handbags that were available for a limited time at Target. But Budoff didn't use the purses. Instead, she posted 10 of them on eBay and earned about $750 in profit.
"I viewed it as a low-risk investment,[link widoczny dla zalogowanych]," Budoff says. "Anything I didn't sell I could return to the store within 90 days and get my money back."
More than a million people like Budoff make a portion of their income from selling products on eBay ebay. And that has some retailers worried. To protect their businesses and their brands, they are taking steps to curtail customers who are buying products for resale.
Retailers are especially concerned about reselling of clothing and accessories,[link widoczny dla zalogowanych], a category that has grown 73% on auction website eBay the past two years.
For retailers, "Jewelry and handbag sales are especially hurt by e-commerce,[link widoczny dla zalogowanych]," says Ken Nisch,[link widoczny dla zalogowanych], chairman of retail consulting firm JGA. "More of these items sell online because people don't have to worry about clothing sizes."
Luxury leather goods maker Coach coh sends letters telling people that they can't shop at its stores if they are found selling Coach products on eBay. EBay users are more likely to buy identical products in bulk because it makes selling them on the Internet easier. Selling 50 shirts of different colors would require making 50 posts on eBay, but 50 shirts of the same color can be sold on a single posting. "It increases productivity, and it's just easier,[link widoczny dla zalogowanych]," says Donna Klein of Birmingham, Mich., who sells plus-size and bridal lingerie on eBay.
Because of this, many stores limit the amount of merchandise a person can purchase at one time. Gymboree gymb, a clothing store for kids,[link widoczny dla zalogowanych], won't allow customers to buy more than five of the same item.
"We need to protect our image," says Jamie Falkowski, Gymboree's director of public relations and advertising. "We can't ensure a product's quality on eBay,[link widoczny dla zalogowanych], and we don't want people to think we're selling things on eBay."
Target limits a small number of collectibles and special promotional products. The company cautions consumers about the quality of products on resale sites. "This is a largely unregulated marketplace where stolen and fraudulent goods have appeared,[link widoczny dla zalogowanych]," Target tgt spokeswoman Paula Thornton-Greear says.
Besides purchasing limits, retailers can do little to prevent their products from being resold on Internet auctions,[link widoczny dla zalogowanych], says John Devlin,[link widoczny dla zalogowanych], an attorney who represents retailers such as Nordstrom jwn,[link widoczny dla zalogowanych], Home Depot hd and Nike nke.
"EBay is like a modern-day yard sale," says Devlin, who works for the firm Lane Powell in Seattle. "The Internet just allows people to reach a larger audience."
The top-searched clothing labels include Hollister, Abercrombie Fitch anf and Nike along with high-end designers such as Prada,[link widoczny dla zalogowanych], Gucci and Marc Jacobs,[link widoczny dla zalogowanych], eBay says. The most popular fashion items are dresses,[link widoczny dla zalogowanych], shoes and handbags.
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