Many industries carry the threat of a Grey Market, and the electronics industry is no different.

While most companies are reputable, an increasing number of unofficial and untrustworthy companies are in operation. Exacerbated by the effects of the COVID-19 pandemic, companies became tempted by grey market offerings due to the limited number of available components.

Grey market products are those sold legally but without permission. To put it in basic terms:

Although the pandemic and city-wide lockdowns impacted the ability of factories to make and distribute components, certain areas of the industry were already facing a shortage before 2020.

When looking at the effects of the pandemic, there was not only a decrease in the production of components, but there was also an unprecedented surge in the sale of electronics such as games consoles, laptops, PC’s, etc. Both factors meant that the shortage was accelerated beyond prediction.

There is still much debate and differing opinions throughout the industry about how long this shortage will last. Some say supply is looking promising, with others predicting it will continue throughout 2024. Either way, this isn’t something that is likely to be resolved soon, forcing companies to look elsewhere for their components, with many turning to the grey market.

Being in a scenario where you are looking at unknown companies or ones you don’t usually deal with, comes with the risk that something isn’t right. Low prices, fast delivery times, and not being able to provide full traceability are all things associated with grey market traders.

It is all too easy these days for companies to create a convincing website that offers the earth. They advertise high-demand products at appealing prices. However, these items won’t come with warranties and certificates of authenticity.

It is also important to note that these companies will be looking to charge the best price for their product, and with this comes no loyalty to you, the customer. Although advertised prices may be low, it is often the case that the price will not remain so for long. These items will likely be high-demand items, meaning the price will continue to increase until you commit to buying.

At Tencell, we always provide full traceability for everything we sell and will only source components from reliable and reputable suppliers. Honesty and quality are at the forefront of our company. 

Please email sales@tencell.com to discuss how we can work together to prevent issues in your supply chain by sourcing traceable, trustworthy components.