Purchasing camera gear can be a frustrating experience. Camera companies and big outlets highlight the importance of buying from authorized channels due to service, support and warranty issues, whereas many Internet-based websites and some small photography shops offer gray market products at very appealing prices, sometimes with significant enough discounts to make photographers seriously consider them. And then there are regional pricing differences. When a product is launched, manufacturers point out product’s MSRP, which can vary greatly between different markets. In this article, I want to bring out the issues I see with gray market products, as well as issues related to inconsistent product pricing, which can make the shopping experience rather frustrating.
What is a Gray Market Product?
Simply put, a gray market product is a product that is imported and sold by any party other than the manufacturer. Most of the time, gray market products are no different compared to their retail counterparts – they are genuine products made by the same manufacturer, only packaged and intended for other markets. Therefore, they might contain product manuals in other languages, or perhaps have chargers and accessories that only work in a specific country. However, there are also cases where gray market products are completely fake, where refurbished products are resold as “new”, or even used / returned products are repackaged and resold as new at a lower gray market price. There is no way for the manufacturer to be able to fully control the import of its products to the markets where it already has direct distribution channels, so there are certainly risks associated with buying gray market products.
Manufacturers do not like gray market products competing with properly imported retail versions of the same product for a number of reasons. First, gray market products are often cheaper than their retail counterparts, sometimes by a huge margin. This is a big problem for the manufacturer, because its own product sold by unauthorized parties competes in terms of price with the properly imported retail version that is sold at the same MSRP (Manufacturer Suggested Retail Price) across all resellers. Whereas the MSRP can be tightly controlled by the manufacturer through its channels, the price of gray market products fluctuates all the time for different reasons, one of which is currency exchange rates. Basically, when exchange rates are favorable, gray market products are sold for less. In comparison, manufacturers often compensate for favorable differences in exchange rates by providing limited time bundles, promotions and rebates. Other than that, the price of properly imported retail product typically stays the same. Second, as I have already stated, the manufacturer cannot guarantee that the gray market product works as intended, because the product or its accessories (such as chargers and batteries) could have been modified, replaced or adapted to be compatible, so the importer could be opening up boxes and replacing adapters, batteries, product manuals, warranty cards, etc. And lastly, the product itself could have been modified or sold in a condition other than new and there is no way for the manufacturer to guarantee that it is a genuine product. That’s why there is a “gray market” label attached to these products, as you might not know for sure what you are getting. It is not quite black market, but it is not a manufacturer-backed retail product either – it is somewhere in between.
Why Gray Market Products are Cheaper
You might be wondering why the MSRP of a properly imported product by the manufacturer is higher compared to gray market pricing. Keep in mind that the price of a product is comprised of a number of different costs such as the cost of manufacturing, transportation, distribution, marketing efforts and import fees. In addition, there are many other costs and risks that have to be taken into account as well when pricing out a product, such as product support, returns / exchanges, recalls and warranty repair work through authorized service centers. These can be very costly for the manufacturer due to high labor costs, training, extra parts, etc. and these costs can vary greatly by region / country. Even warranties can differ, with some countries offering longer extended warranties, while limiting others to much shorter warranty periods. Because of all this, some countries might have lower costs compared to others, making them favorable for the purpose of buying and reselling in different countries.
For example, a lot of gray market Nikon and Canon cameras imported into the United States by third parties typically come from Asia. Since cameras are priced lower in that region due to lower transportation, distribution, support and warranty costs, buying and importing expensive camera gear can be a profitable business. When a gray market product is priced significantly lower than its properly imported counterpart, it creates a strong market demand in countries such as the USA. And with the rise of popularity of Internet-based shops and auction sites, selling such products has become easier than ever, which is why the gray market has only been flourishing in the recent years. As a result, companies such as Nikon and Canon end up dumping a large number of camera gear to the Asian market, understanding that perhaps a large portion of camera gear gets exported by non-authorized parties. It is a double-edged sword for camera manufacturers – on one hand, they sell a boatload of cameras in those markets, often exceeding their sales forecast goals, and on the other hand, they end up with a lot of gray market products directly competing with their own.
Now if you are wondering how big of a difference there is in price between a gray market and a properly imported product by the manufacturer, let’s take a look at a couple of examples. The Nikon D750 is priced at $1,996.95 at B&H Photo Video (authorized Nikon seller) – that’s the current MSRP of the camera. If one were to look at places such as eBay.com where it is possible to buy a gray version of the same camera, it is easy to come across much more appealing prices. For example, one of the highly rated sellers of the camera on eBay offers the D750 at just $1,359.99 – that’s a whopping 32% discount, or $637 difference in pricing between the two. Currently, Nikon USA is running an end of the year promotion on this particular camera model, giving an instant rebate of $200, so the price difference is much smaller at $437, but still, even then it is still 25% lower – a large enough incentive for a potential customer to go for a gray market deal. The same can be seen on products from other manufacturers. The Canon 5D Mark IV normally retails for $3,599 at B&H Photo Video (currently on a $200 rebate), but one can easily find a gray market version for around $2900 – a nice $400 to $600 difference.
Gray Market vs Manufacturer Import Differences
Interestingly, camera manufacturers also sometimes sell their products to third parties while being fully aware of the fact that they will most likely end up in foreign markets. That’s understandable, because they can dump a large number of cameras to gray market buyers, move inventory and meet sales forecasts. At the same time, manufacturers surely do not want any of their dealers to be angry about other sellers undercutting them either, which is why prices are dictated at MSRP level, and gray market products are treated completely differently when it comes to support, warranty and service. In fact, manufacturers such as Nikon and Canon clearly state that they will provide zero support and warranty on any gray market products. That’s because a rather significant part of the product price (arguably the difference between gray market price and the properly imported product price) in fact lies in providing such support and warranty services through various service centers, as well as salaries of all marketing and sales efforts in that region.
Now when it comes to the product itself, there is no difference between a gray market camera and a manufacturer-imported camera. Both are made in the same factory, both went through the same manufacturer QA processes and tolerances. The only difference is the targeted market. Because of this, there can be differences in included manuals and accessories, as previously stated. However, since there is no direct involvement of the manufacturer or its distribution partners in the gray market product sales, nothing could technically stop a seller from selling a fake product as a “gray market” in the same price category.
Below are some of the reasons why Nikon USA strongly advocates against buying gray market products:
- No Warranty: Gray Market products may contain a limited warranty from the seller, but they are not covered by a Nikon USA warranty.
- Non-genuine accessories: May include counterfeit or third party accessories that could damage Nikon equipment.
- Fake software: The software included often is either copied or counterfeit.
- Wrong power cord: May include an incorrect power cord or adapter not designated for use in the USA.
- Not eligible for repair service: Not eligible for Nikon USA repair service, even if you want to pay for it.
- Missing user manuals: User manuals are often missing, incomplete or photocopied, and they may even be in a foreign language.
- May not be as expected: Since Gray Market products were not designed for sale in the USA, they may not meet your expectations.
- Not eligible for rebates: Gray Market products are not eligible for Nikon USA promotions or instant rebates.
Canon has similar wording on their gray market warning page.
While a lot of the above is certainly true, there are a few statements here that rarely ever happen. Accessories are typically a non-issue, since there are practically no differences there across various regions. Fake software should not be an issue either. Not only because most of the provided software can be obtained for free anyway, but also because the same basic viewing and conversion software would most likely be distributed in all markets (there are exceptions, such as when a product is bundled with a third party commercial software license). The same goes for missing manuals – one can easily download a full manual in PDF format from the same manufacturer for free.
Gray Market Product Buyer Confusion
One of the biggest issues with gray market vs authorized products is that it confuses a lot of potential buyers. People are used to shopping for the best deal and when they see pictures of cameras and lenses that look genuine and there are descriptions such as “Brand New”, “USA Seller Warranty”, etc., they do not feel they are doing anything wrong by buying it from a small camera shop or from an online auction. They don’t understand that the product is priced lower for a good reason being a gray market import – they think they just found themselves a sweet deal. Gray market products also created upselling opportunities, where a poorly educated customer is tricked by pushy salesmen into believing that the product they bought was incomplete and that they need to pay extra to get its full functionality, or pay extra for accessories such as batteries and chargers. Those who are unaware of gray market vs properly imported product differences learn the hard way that they have no place to go in case their expensive camera gear needs to be serviced. If they are lucky, they might be able to find qualified technicians in third party camera repair shops that might be able to service their equipment.
Gray Market Products and Their Impact on Service Centers
One main reason why it is a good idea to buy the properly imported version of the product instead of gray market is the potential for poor customer experience when dealing with service centers. If everyone buys gray market and the manufacturer has a hard time selling imported gear through its distribution channels, there is going to be little to no financial support for the existence of national and regional service centers that can handle issues when they arise. Service centers handle a lot of work – everything from warranty repair and customer support all the way to product recalls and exchanges. By buying or encouraging others to buy gray market products, we literally cut service center budgets, which in turn could end up in staff reductions or insufficiently trained personnel, resulting in poor service experience.
Should You Buy Gray Market Products?
There is absolutely nothing wrong with buying a gray market product. It is not illegal and if it saves you a lot of your hard earned money and you are fully aware of all the risks and lack of warranty and service options, then by all means go for it. However, as stated above, keep in mind that by buying gray market products you are also cutting financial support of the manufacturer-provided service centers. Once resources are cut and support is reduced, it is hard to bring those back. And if the manufacturer ever chooses to outsource its support and service to a third party, that’s pretty much the end of good customer experience. Consider some of the newer players on the market who started out by outsourcing their service centers to a third party and listen to some of the customer experiences to see why it is important to have proper and fully functional service centers. In short, if you want to have a peace of mind when it comes to service and warranty work, and if you want to support your camera manufacturer, you should not buy gray market products.
Personally, I have purchased gray market products only twice. The first was an inexpensive Nikon 1.7x teleconverter that I purchased to pair up with my telephoto lens for birding. Unlike lenses and cameras, teleconverters are simple by design, so I assessed the likelihood of the teleconverter needing to be serviced in the future before buying the product. The only chance of needing service would be if I were to drop it, which I would have to pay to get repaired anyway. I chose to go gray market, because if anything happened to the teleconverter, I would most likely replace it with a new one. The second gray market product that I purchased was a Nikon D750, which I bought to pair up with my other D750 (purchased via authorized seller) for recording video projects. I had a limited budget for the second video camera, so when I saw that a gray market version was available for $800 less than the retail version, I went for it. For me, it was too big of a price gap between the two to justify spending so much money on warranty and service that I did not need or care about for occasional video work. Other than these two, I have never gone the gray market route.
Regional Pricing Differences
One of the biggest frustrations of potential buyers is the big variances in pricing between different regions. When a product is announced, we get complaints all the time from our readers and I can fully understand their frustration with such pricing disparities. Let’s take a look at a real example. The recently announced Nikon D850 is priced at $3,299 MSRP in the USA. The same camera is priced at €3,749 in some of the European countries like Italy, which is roughly equivalent to $4,380 in USD. In the UK, the same camera is sold for £3,499 MSRP, which is about $4,590 in USD. In Australia, the Nikon D850 is priced at $5,299 AUD, which translates to about $4,045 USD. In almost every case, the price difference is very significant – from $750 to $1300.
If you are wondering why the same product is priced so differently in different markets, you should take into account a few important points. First, there are major differences in import fees and taxes between different countries. Second, the size of the market and its relative upkeep for service centers and employee salaries also add up quickly. Third, some countries require higher levels of warranty coverage than others, which also raises the long term costs for the manufacturer. And lastly, other government-enforced regulations and employee benefits also add to the mix, increasing the cost of camera distribution partners in those markets. That’s why there are such large pricing differences between different markets.
While it might be tempting to travel to another country in order to purchase cheaper camera gear, whatever you bring with you could automatically be considered gray market import by the manufacturer’s service centers in your country and they could refuse to perform service on it. That’s understandable, as you would be bypassing the upkeep of all those infrastructures put in place by the manufacturer and its regional distribution partners. Why would they help someone who is refusing to pay their salaries? Check out Robert Andersen’s excellent article on why you should buy from authorized dealers for more information on this (and don’t forget to read the comments section as well).
At the same time, considering that we live in a global economy today, the idea of a gray market product sounds ridiculous to many, including myself. Why can’t I go on a vacation to another country, buy camera gear there and then come back and be able to get support and warranty for it? Why shouldn’t I be able to get support and warranty if my camera breaks down in a different country, or perhaps I move to another country to live? Why should it matter which country the camera was purchased in the first place, provided that it is genuine and it was bought from an authorized seller? Perhaps it is time for manufacturers to reconsider their regional pricing strategies, gray market imports and service centers and come up with a way to make it simpler and easier for their customers to buy their products, on a global level.
Do you buy gray market camera gear? Let me know your thoughts in the comments section below!
I’m sure many of us are aware of a grey market retailer based in Hong Kong called Digital Rev. I have previously purchased items from them and had no problems as equipment these days is in most cases reliable and free from defects. If you live in a country where there are local taxes placed on personal imports Digital Rev will even refund you the tax on production of an invoice. The company offers there own form of warranty whereby should you encounter a manufacturing defect all you need to do is have a local repairer provide a report confirming the fault and giving a repair quote. Digital Rev will then reimburse the cost of the repair. My feeling on grey imports is that profiteering multinational corporations operating on huge margins paying workers in third world countries a pittance for their efforts have enough money to look after themselves without crying poor to the man (and woman) in the street, its a simple case of them wanting to have their cake and eat it. Think of the Paradice Papers…………………………….
I ALWAYS buy grey market cameras and lenses and purchase a warranty “mack diamond”
I get complete coverage which includes impact and water damage. 3 years, peace of mind. and I dont nikon bullshetting me with “impact damage” to milk me from tons of money for gear that never had impact damage.
at the end it costs me less then nikon retail pricing and I get 3 years of full coverage.
Keep in mind that the cost of the camera also includes research, development, customer service, marketing, and professional services. Why not support a company that is supporting you photographically. With layoffs and pulling out of certain markets it just makes sense to me.
But research and development is made for the asian market too… So is marketing and customer service..
Thanks for the article. In New Zealand it is called Parallel importing. Just wondering if a company knew (by the serial number) that an item is parallel Imported can they refuse to service it? A few years back I spoke with an Australian company about importing some extension tubes for my underwater camera. They were an ‘official’ seller of the product. They declined because they knew there was a sole importer of the tubes in NZ. They said that if the product was not available via the importer they would sell me the stuff; ‘you scratch my back’. In the end I got them from a US company.
Markjass as you do I also live in New Zealand. There are several reputable discounted dealers such as Parrallel Imports, and Expert Infotec and others. They import directly from legitimate distributors in Hong Kong and Singapore. Their prices are often 100s of dollars cheaper than than imports via Canon NZ, ( I use Canon ). They have both retail shops and online ordering. I’ve bought many lenses and camera bodies tablets and phones from Expert Infotec and saved 1000s of dollars. If there is a warranty claim they immediately airfreight back to the Asian distributor and return in a few days rather than waiting weeks for Canon NZ service. Battery chargers are all multi voltage nowadays and work in any country. Only with tablets and phones have I required a simple 3 pin power outlet adapter which is always supplied. Products come in the original unopened factory boxes. NEVER had a problem.
Thank you for taking the time to respond. Times do change. Today I started thinking of getting a L bracket/plate for my 6d. It would be particularly useful for night/astro photography, had some fun and games last night. Anyway I am gob smacked at the prices in NZ. There is lots of research I need to do. I don’t even know the basics. I know that the plates are specific to camera’s, but don’t know if the generic cross brand ones can be insecure. I don’t know if the bracket fits to my tripod plate or if the bracket comes with the mount fixed to it. I will look at the companies you mentioned. They do crop up in price spy.
Retail Price Maintenance, where manufacturers control retail prices for their products, was made illegal in the UK in 1966 and subsequently in European Union law. That’s why I can buy the same product at different prices in different supermarkets, it is up to the seller how big a profit they make per item. Yet camera companies still seem to flout this law, the same model is always the same price exactly wherever you look. Competition is good for consumers, if there’s no competition from within a market, then expect it from outside. I used to buy official products, now I buy grey and have had no issues. I recently saved 40% of the price of a Canon 200d (SL2) which I wanted as a carry around camera, I simply would not have bought it at full UK price.
Personally, I don’t know any amateur, like me, who has ever used a service centre, they mainly seem to be used by pros who hammer their equipment, while we all have to pay for their support.
I was wondering when the camera manufacturers dump their stock on the Asian markets exactly where do they think it will end up? I think what is really going on here is that they intentionally overprice their products knowing that there are many consumers and pros who will pay full price but also that there are many others who would never pay full price and at the end of the day they need the turnover for long-term financial survival, after all those factories need feeding with our money
That’s absolutely right. Nasim said that too. I just want to add one more thing: They do this intentionally so they can cut HUGE cost on services, warranties… It’s a game and the low side always be a buyers. All we can say (newbies, amateurs, pros, whatever) is well we got to pay for our hobby one way or another and the Manufacturer manufactured based on it.
PS: I bought a D750 on ebay, it’s 30 days warranties and 1 year labor but so far so good, I got about 45k click. Everything come with it is genuine, nothing different from “US import”. I guess these day no “3rd party” seller take out the accessories or manual just to gain few bucks and loose their reputation (if they had any).
Thanks for the article Nasim.
Some very well-know sellers offer Nikon products as gray market and label them as such. I recently saw a 45mm PC-E lens there. Would it be safe to say that they would stand behind their offering adequately ?
I was lured into buying a gray market D750 when it was launched. I had no clue that there was such a thing back then. I live in Lebanon where prices were unbelievably more expensive relative to US prices so I bought one from Amazon Canada, which ended up being gray market itself ! I was fortunate in never experiencing any of the banding issues on the body I got although it was among those “affected”. As other defects came out later it felt really bad having a body with no manufacturer support to say the least although the camera was still running just fine until I sold it a few months ago.
They have recently priced the D850 much more affordably here, so it seems we are in a better spot to buy with manufacturer warranty.
www.amazenlight.com
“Would it be safe to say that they would stand behind their offering adequately ?” = NO, that’s the major downside with grey market. Nikon typically selling into a country through legit importer and will only service items purchased through legit outlets.
I bought a lens from Onedigitals online in Australia. The goods never arrived. The promised refund never arrived. Basically it is a well put together scam. It pays to check out a vendors online reputation. Would have saved me some money. Maybe wiser next time.
Gregory, definately check out reputation. I’m simply guessing that your vendor may have been an offshore ( from Australia ) site masquerading as an Australian company. Take care out there.
The few times I’ve bought currently marketed equipment, I’ve bought manufacturer refurbished rather than go grey. Refurbs are the same or usually less costly than grey market, have been through the manufacturers hands and usually have a warranty albeit shortened. The stuff looks and performs new, and if I ever need service (haven’t, so far), I don’t see how the manufacturer could refuse.
The only mental hurdle to overcome is that one that says “I want one that nobody else ever used.” And even then, I’ve seen
refurbs that looked so new that I think they were simply new returned items – – – after a month of looking at it, the spouse didn’t like his birthday gift of a Df so it was returned after 42 shutter cycles. No longer a “new” camera….. but it’s still new.
I bought my D750 & 24-120 kit from Panamoz a little over two years ago, when I was living in France, at a saving of nearly £600 off UK/European retail prices. Their overwhelmingly positive website and customer service reviews made it an easy decision and as it was the only way I could afford to buy the camera, I was willing to accept the ‘risks’ to make that kind of saving! I wouldn’t hesitate to do the same again in the same situation, considering both the ridiculous price of camera equipment in the UK and the likelihood of the camera needing to be returned to a service centre by part-time amateurs like myself. Even if it did have to be returned within is warranty period and a free repair was refused, I would assume that the initial saving would cover most, if not all, of the repairs so, in effect, I wouldn’t be out of pocket compared to if I had bought it through the ‘proper channels’.
Having said that, the camera ended up in the second set of serial numbers that were affected by the shutter issue service advisory. I filled in the service request form on the Nikon Europe website, sent the camera back to the French service centre and had it repaired and returned within 10 days. There was not one mention throughout the whole process of where it came from. I don’t know if it would have been the same if it wasn’t being sent back for a service advisory repair, but I thought it was interesting that its origin wasn’t even an issue.
30,000ish shots later, the camera is still performing well (‘touch wood’) and I’d like to say that I still have all that extra £600 sitting in my bank account but sadly, the wife’s penchant for an expensive handbag has ensured that is not the case!
It would be great if you could buy an object brand-new and have it serviced anywhere. I think we all would like that convenience and ease, and it’s got to be less hassle for the company. However history can’t be erased and it casts some long shadows. Take warranties — they differ between countries because the people in one country demanded it. The manufacturer can’t disregard that; they’re bound by the will of the people in that country (aka law). The argument from a human needs perspective is “well all people in all countries should agree on some basics”. How well is the EU working out these days?
I just don’t see any end to national differences in terms of laws, taxes, and preferences. How should companies accommodate all these things is a question that perhaps the entrepreneurial set has the best answers to. It would probably be worth looking at folks like Peak Design and the like to see what they say.
I recently bought an almost new Nikon D7200 I bought it from a private party on eBay. I was concerned it might be grey market and called Nikon with the serial number. They were UNABLE to tell me if it was and wanted me to ship it to them for inspection. The did tell me it was sold through Best Buy. That meant I’d incur 2X shipping costs. I chose to return it. I am utterly baffled why Nikon couldn’t tell from the serial number. Do they have a secret indicator? Or is this a scam of sorts? I own 13 Nikons and 20 Nikon lenses of various vintages all but the D7200 and one lens were bought from Authorized Distributors. The one lens was bought in Japan from an authorized dealer.
I re-purchased the D7200 through Walmart.com. I suspected, from the lack of a manual and warranty, that it was grey market and pointedly asked the supplier if it was. The response I received was that it was not grey market. I’m saving that email in case I run into problems
Some manufacturers are aware of people buying gear in a country then moving to another one, with no intention to buy on gray market. While living in Australia, I bought a Sigma 150-600 Sports lens. I then moved back to France where I experienced a problem with the bolt that holds the lens hood. My local shop send the part to be repaired by Sigma in France and Sigma only charged me with shipping fees. So globalized after sale service maybe on the path !
I believe that if one is outside the US and purchases Nikon equipment from an authorized retailer Nikon USA will service it with proof of purchase.
Luke, please see the article posted by Robert Andersen – linked in the above article. That was not the case for him when trying to service gear in the USA when he originally bought it from Canada.
Agreed! Nikon supporting a customer? An amusing thought! Neither in US nor in UK. Canon “yes”, Nikon definitely “no” in my experience.
1. In US for 3 months, I damaged a genuine Japan-manufactured UK lens – Nikon servicing willing to help? No way, not even for money – not a US lens!
2. Back in UK, again a Japan-manufactured, Nikon 500mm lens collar just parted when I was holding it by the plate and put it down on soft ground on a coat – metal crystallised and disintegrating. Not in warranty, but was technical support, or thereafter, the CEO UK interested? Not in the least, I got a short lecture about how I must have subjected it to considerable trauma and anyway it was out of warranty.
If I was starting again, I would not do so with Nikon, no matter how much I like working with their equipment.
Agreed! Nikon supporting a customer? An amusing thought! Neither in US nor in UK. Canon “yes”, Nikon definitely “no” in my experience.
1. In US for 3 months, I damaged a genuine Japan-manufactured UK lens – Nikon servicing willing to help? No way, not even for money – not a US lens!
2. Back in UK, again a Japan-manufactured, Nikon 500mm lens collar just parted when I was holding it by the plate and put it down on soft ground on a coat – metal crystallised and disintegrating. Not in warranty, but was technical support, or thereafter, the CEO UK interested? Not in the least, I got a short lecture about how I must have subjected it to considerable trauma and anyway it was out of warranty.
If I was starting again, I would not do so with Nikon, no matter how much I like working with their equipment.
IMO, Nikon distributors all over the world should revise their “Gray Market” rules. Why? I’ll give an example. Let’s say I bought my camera and lens through an authorized dealer here in the US like B&H. So I know that warranty and service is covered so long as I’m here in the US taking photos. Then I decide to travel to Europe or Asia. While in my trip, something happened to my camera like I accidentally dropped my lens or God forbid I dropped both lens and camera body all together. Can’t say that things don’t happen as accidents do happen whether you like i or not.
I’m no professional shooter nor an NPS member and I do not have any back up gear. I’m just an average person who got a camera so I can take pictures. So I have a damaged camera and lens in my hands. I go to a local camera shop who are also authorized Nikon dealer for their respective country. So if this “gray market” rule is in place to refuse service to items sold outside of their jurisdiction, then I’m SOL (sh..t out of luck) since the local authorized Nikon dealer is going to refuse fixing my damaged gear since I bought it from Nikon USA and not Nikon UK or Nikon Japan or whatever country I’m traveling in.
Nasim, it’s easier for you to say to support your local dealer as you may be an NPS member and a professional shooter so you have all the avenues to get support where ever you are, but for average Joe’s like me who do not have any of those support it will be “harder” for me as I have to fight my way into getting my gear repaired or replaced. So all-in-all I think this whole “gray market” thing needs to be revised in a way that it will benefit travelers that bring their gear to a different country for their leisure time.
Don’t get me wrong, I usually buy my Nikon gear through B&H, Adorama, or Focus Camera. I also do admit that I bought a gray market product through eBay and got the Nikkor 35mm f1.8 DX lens as the price was a bargain and couldn’t overlook it. but other than that my lens and camera body was purchased through those dealers I’ve mentioned.
Hi Nasim,
My understanding is that Nikon USA will repair specific gray market cameras. Of course, they will charge for this. I believe the D800/E and D810 as well as some other cameras are covered. See petapixel.com/2016/…epairs-us/
Regards,
Jim
Jim, if that’s the case, it is indeed good news. Still, I would love to see Nikon and other manufacturers repair any camera bought from anywhere in the world, as long as it was purchased from an authorized seller.
Setting aside country taxes and import fees, the last paragraph sums up the simple and logical solution. The world we live in makes “gray market” thinking obsolete and probably more costly to manage than thinking through and managing a truly global enterprise.
Bear in mind that the inspection, postage and repair costs of cheaper cameras and lenses may equal or exceed the cost of a new grey market item; : it would be simply uneconomic to pay to repair a D3300, 70-300 etc.
In NZ you can get a 5 year warranty from a good parallel importer; with digital after 5 years your camera is likely to be totally uneconomic to repair anyway because of predatory service costs (at least in NZ, at least $120 + postage just for a quote) out of warranty, as well as obsolescence.
The idea is to keep you buying new gear regardless of where you bought it; repairs outside warranty are discouraged.Not very environmentally friendly otherwise.
If you are happy to pay even more at an “authorized retailer” they are happy too.
The gray market does not save the camera companies any money on warranties or service. Those things are funded by the regional distributors; the cost of covering those expenses is covered in their profit margin. The factory does not collect any money to fund warranties and services, and they don’t spend any money on those things either.
I’ve bought both grey market and genuine items for both Fuji and Nikon. I’ve had good experience with grey market imports and the price difference is now not as much as it was.
One example is when I purchased a Nikon 300mm f2.8 from Hong Kong. The autofocus failed when I tested the lens. I sent the lens back at their expense and got a replacement directly from Nikon Japan after a couple of weeks.
As far as I know, Nikon Australia has never refused to repair grey market equipment although there’s obviously no Nikon warranty.
So far, I’ve had good experiences with Gray market products for Canon and Nikon. Haven’t had to send anything back for repair, so I’m glad on that. That said, I have heard where people have had issues with a gray market item and tried to send it back to Canon or Nikon and service was refused, but they knew that up front. If you decide to buy Gray market and they offer an extended warranty, it might be good to purchase one.
Thanks for an excellent article. I live in the UK and have bought all my Nikon gear through the Gray Market (D7000, D610, 1 DX and 4 FX zoom lenses and 2 teleconverters.) I understand the risk I take, however the seller offers his own repair warranty – obviously not as extensive as Nikon’s own. In total it was a huge saving over the years. I find it very frustrating that manufacturers price differently in different countries and it isn’t just exchange rate or tax variations. I think that if a more uniform global pricing policy was adopted then the Gray Market would shrink significantly.
I discovered this issue when I went to buy a Tamron lens. When received I went to register for warranty and discovered it wasn’t their product. I did immediately send back and fortunately received full refund. Sometimes it doesn’t pay to save a few bucks. A little more shopping and was able to buy from B&H a true Tamron lens for same price and everything is fine. I guess it just depends on what you’re willing to give up for the savings.
Great article. You forgot a very important point. The impact on reselling. I never purchase gray market products for the reasons you mentioned, plus when I resell them I can advertise that it is not gray market. This is especially important for camera bodies which I regularly upgrade within the extended warranty period that I purchase. Since Nikon Warranties are not transferable, this is a huge selling point for people buying used cameras. The fact that it is not gray market and has a transferable warranty means that my camera sells very quickly and for more money than the equivalent gray market cameras for sale. If you know someone that bought gray and needed service, you know they will never choose that path again.
The CaNikon manufacturers warning, to state no warranty etc for Grey market products is just a sign on a monopoly being demolished by new distribution methods.
It will not be possible on the long run to meet sales targets, managers volume related bonuses by making a difference from where the original product was sold.
I bought a Fujinon from e-Infinity, it was shipped from UK to Sweden. It was faulty. I contacted thew warranty at Fuji Sweden, sent the lens + payment receipt in a Fuji prepaid package. Return after a mere week, repaired.
Btw, this is how my Canon F1 was handled in the 80’s, bought in NY, shutter broke and free warranty repair by Canon Sweden.
-J!
There are two issues with gray market that prevent me from going this route. As a Nikon Professional Services (NPS) member, I get a pretty good deal on out of warranty repairs (rare). So, not being able to have an item repaired through NPS is a serious deterrent. The second issue is less serious because it depends on finding a reputable seller. I want to know exactly what equipment I am getting when purchasing a camera. I don’t want 3rd party batteries at all. I have tested one popular 3rd party and didn’t think it was worth it. I also don’t necessarily trust that I am getting a new product. Of course, this entirely depends on the seller and would have no problem if I knew exactly what I was getting from a reputable seller.
I prefer another route to get “discounts” on camera gear – buy used. I have found a couple sources that I trust implicitly for used gear. NPS doesn’t care if the product was purchased used, just whether it is gray market, so I can get the equipment repaired. I know when I purchase whether or not the equipment is gray market so I don’t have to worry.
I’ve bought grey market cameras for years. I’ve registered them with Canon and even gotten full warranty support for them. The reality is that Canon can’t tell the difference between a grey market or non-import camera. I even had a Canon tech tell me that they have no way to tell the difference. They come n the same box, same paperwork, etc.
One of my lenses either 300 prime Nikkor or 28-300 Nikkor, that I bought used on Amazon: NPS informed me it was grey market. No problems with the lenses, but I don’t recall the seller disclosed status.
Do they come in 18%? ;)
I came back to photography after an 18 year break due to business and family commitments. My first two cameras were legally imported Fuji point and shoot models. The first one broke down a week inside warranty, and they fixed it. It broke down again three months later, different issue, and, no warranty. Price of repair was more than a new camera, almost. Bought another Fuji as the quality of image seemed fine – 13 months in, it packed up completely, no warranty, and repair cost estimate higher than a new camera.
I decided to go for a DSLR and have, in 9 years, owned the D5000, D5100, D5200, D5500 and now the D810. ALL of them were gray imports, and each one saved me 25% or more of the official importers price. When it came time to sell (while upgrading) I found that I was able to sell at more or less what they cost me, due to the price difference between imported and gray imported – making it much less costly for me to upgrade each time.
My last upgrade to the D810 was due to the imminent release of the D850 and the bargain prices. That said, in the UK the difference between a genuine new gray import and an official import was a staggering £800 – £2399 Vs. £1609. The gray lens I bought was £433 Vs. £988, and I got my 14-24mm from a used private source with a proof of original purchase, for £950 Vs. £1589.
Not one of my previous cameras (or quite a few lenses too along the way) have EVER failed me – and I would highly commend purchasing like this, as the savings a) would cover the cost of any paid repair if you should be unlucky, and b) allow you to sell with much less of a loss on the original price.
I worked out that I saved north of £2000 on the last purchase alone – What could have cost me £5000 ended up costing me £3000. Don’t worry, gear is so reliable, but there are two golden rules to follow…
1). Make sure you choose a supplier with a good reputation, check them out online for scam reports etc, or if Ebay, look carefully at feedback as a seller.
2). Don’t buy a new model just on the market, being an early adopter invites trouble if the product has faults yet to surface. Remember the D600 problem with dirt on the sensor? Wait for the product to mature for at least six months, then if it is not all over the web about ‘common faults’ or other issues, you can assume it is safe to buy it.
Following those two rules, you should do ok, get what you want instead of compromising on something cheaper, and be able to resell it at a fair price (in proportion to what YOU paid) when the time comes to change.
Just my take based on lots of experience, and, remember what happened to me with the two Fuji cameras I bought, officially imported?
To take it one step further and add additional confusion to the mix…..I JUST returned from Tokyo….curious about Nikon D850 pricing….I went to the largest store and looked it over. It was a fantastic piece of equipment with my in-store sample portraits under multiple display lighting conditions on auto WB turning out perfect! Thinking ENOUGH! I’m SOLD! How much…(foolishly thinking by the same logic as shared in this article….that Japan Produced-Tokyo Sold=GREAT PRICING!)….WRONG! Well over…..WELL OVER $4,000.00 even when figuring in VAT Back, etc! so much for your shipping etc figured in to the pricing! Sorry.
To take it one step further and add additional confusion to the mix…..I JUST returned from Tokyo….curious about Nikon D850 pricing….I went to the largest store and looked it over. It was a fantastic piece of equipment with my in-store sample portraits under multiple display lighting conditions on auto WB turning out perfect! Thinking ENOUGH! I’m SOLD! How much…(foolishly thinking by the same logic as shared in this article….that Japan Produced-Tokyo Sold=GREAT PRICING!)….WRONG! Well over…..WELL OVER $4,000.00 even when figuring in VAT Back, etc! So much for your shipping etc figured in to the pricing! Sorry. It was almost $1,000.00 higher than anywhere in the states….and as you pointed out, No US Warantee!
Back in 2004 I purchased a Sigma 120-300mm 2.8 from a Canadian store via eBay and saved a ton. The manual was in Canadian but, hey, its a lens. Who needs a manual. That lens is still going strong today.
This is timely as I just searched D750 on this sight and the first hits were non-authorized Nikon dealers with deep discounts. Got me excited until I figured out what was going on.
Great article and thank you, I recently shopped for a Sigma lens on Amazon and found one listed at a lower price than other sites but with no mention of who was selling the lens. Smelling a rat I send off an email to Sigma Canada and received a strongly worded reply stating that Sigma products purchased from non Sigma dealers would not be covered by any warranty whatsoever and furthermore Amazon is not a Sigma dealer. So now before buying any item on line I check the manufacturers website to find out exactly who their authorized dealers are.
There is a brand new Nikon D810 offered on Ebay right now at $2,160.
The description says this:
Manufacturer Warranty: No
Warranty: Yes Import model with 1 year seller warranty
This means to me that Nikon does not give the warranty – you have get the camera repaired by the seller during the first year.
The only camera I ever bought (grey) from japan, was when one of our salesman was travelling there to do bussines . It was a Nikon F2 (photomic) with a few lenses 50 F1.4, 24F2.8 and 50 or 55 mm micro Nikkor. That was between 1972-1974 and at that time the cdn price was near a 1000$ (F2 + 50mm F1.4). As an engineer I was making less than 8K $ so 1K $ was at the time a huge sum of money. All of my friends photographers told me I was crazy having purchased theses in japan, and what they offer to tourist are rejected or poor quality products. In fact two of my friends who bought from the canadian distributor had problems with the same camera lens I purchased, and luckily for me this kit never had to be repaired in over 43 years. The value of the yen was over 305 for an american dollar and our currency was around 5% less than US. The price I paid for the camera and the 50 F1.4 was about 310$ cdn. I would not do that today with the complexity of the new cameras & lenses on the market.
Just to commenton what was said in the article. At least in the U.K. it may be illegal if taxes are not paid / the customs declaration is wrong. Some grey importers will declare a low value on the customs declaration in order to avoid taxes – this IS illegal and as technically the purchaser is the importer the customer is liable for any fines which could result in the impounding of your camera by customs. Equally anyone visiting USA / Far East, buying a camera (or any other high value goods) and bringing it in to U.K. (or any part of the EU) should declare it for duty and tax or be liable for fines / prosecution.
Having said all that… most personal imports are done without any issue.
Just to add to the above, if you travel abroad you may have problems when returning home if you cannot prove duty and tax has been paid on your equipment. Again fines may be added.
And to finish, there have been cases where Grey Importers have sold “fake” cameras, where serial numbers have been changed to obsfucate the original source, or even cameras are not what they claim to be. As commented be wary of “anonymous” companies and always do your homework. Sometimes things really are too good to be true!
Sorry another addition to what I wrote above… again relevant to U.K. and EU more than USA perhaps, but remember you usually aren’t buying from a U.K. company (even where they have a .co.uk address) so you do not have the usual U.K. consumer protections. As the Romans said caveat emptor.
On another note, there is some irony in the timing of this article only a few days after Nikon effectively “gave” the Brazil market to the Grey Importers…
Eloise, as a fellow UK citizen I can vouch for the voracity of your comment. In my case I always use a UK based company who have pre-imported said goods into the uk and are themselves fully responsible for any duty or fee resulting from that.
That said, if you read my comment above, you’ll see the sense of buying in this way. Unless you are VERY unfortunate, gear from the big four manufacturers is incredibly reliable. They don’t want the expense of repairing your equipment either so they make sure they built it right to start with.
What our largely American readers in here don’t often understand is the relative cost in the UK is always much more than in the USA, making a difference of 20% or even more sometimes, which is A LOT of money. Not all of it is taxes and duty, the distribution chain of the manufacturer bears responsibility also. These loaded prices create a great incentive to hunt down your needs at the best prices possible. I decided to go for a D810 recently, a well known, well tested and loved camera with no known defects. I was faced with buying from Wex or Jessops (two of the UK’s largest distributors) or from another company online. The body price with Wex and Jessops was identical at £2399 ($3165 USD) or go with the other company at £1639 ($2162 USD) Similar differences were present on the new lens I got, the 24-120 f/4 which I got for £433 ($571) while Wex and Jessops wanted £999 for it ($1318) and still do today – – I picked up a 14-24mm f/2.8 used but mint condition and saved spending £1719 ($2268) instead, paying just £950 for it ($1253).
These are vast savings, and cannot be ignored as an option, particularly if you are an enthusiast rather than a pro, and cannot offset such purchases against the profits of a business. There is a very slight risk of trouble if a fault develops, but if you are careful where you buy from, there is no worry. I have a three year guarantee on my body, and a two year warranty on the lens, even at these prices.
The UK customer is being seriously exploited, not just by the photographic industry but many others, particularly technology rich products like phones, ipads, software and computers. I don’t know why this is, we have a history of acting like sheep when it comes to getting a good deal – the Americans on the other hand, are never shy to drive a bargain – maybe this is why we end up with such outrageous prices. Take another look at my example above, it truly is quite staggering. See for yourself at Wex Photographic or Jessops in the UK online stores.
It’s not like buying a prescription medication online without a doctor’s prescription but now that lenses and cameras are more electronic than purely mechanical, I stick to Nikon and/or Canon USA. Back in the 1970’s, I bought a used Nikkomat instead of a Nikkormat, unaware that it was a grey market item.
I purchased my Nikon D810 from Ebay. The camera came in a box with all that I expected minus the lens which this box was packaged with. The price was very attractive at$2200 US dollars, and the camera works flawlessly to this day.
When you buy gray market, you are still supporting the company. The gray-market retailer still had to purchase it from Nikon. So Nikon , for example, got their money no matter where it was sold, if you are buying Nikon gear…..
Photography is an universal hobby – my assumptions only. Acquiring camera gear is dependent upon where we live. Pros can go for authorized distributors while amateurs have the choice to decide. One thing though – grey market products do last. They outlive their warranty just like the same products sold by approved distributors. Warranties and back-up services – you’ll need them one in a hundred chances (unless you are a careless person)
Another fact is, cost of repair for most cases exceeds the price on new/ replacement gear through grey market where there is no authorized distributor/ seller- so the logic is to buy a new one. Quality of products – improved and better camera gear compared to what we own (many years difference) so the logic is to buy a new gear with improved version.
Pros can support their equipment channel by going to the authorized dealers but I prefer grey and hopefully there are many out there with similar view. Its the same product from the same factory, Money spent on both channels end up in the one-and-same bank account – isn’t that so?
Has anybody from the UK got any experience of buying from HDEW Cameras? After looking thoroughly through the FAQs and T&Cs on their website it seems to be pretty legit – all purchases come with a 1 year manufacturers warranty and are eligible for repair in the UK and they have any actual store with a street address that you can walk into.
The only thing I noticed in the T&Cs was the section about Intellectual Property Rights:
“Please note that by making a purchase on this website you will be acting as the importer of the product for all purposes including all customs regulations,copyright and trademark laws.You accept that the role of HDEW Cameras is limited to sourcing products and making them available for you to import directly from the country of origin.By purchasing a product through this website you authorise us to make arrangements for clearance of customs on your behalf for the products you have ordered.”
So basically if any import / customs taxes are charged, the buyer foots the bill. But with the camera body + lens purchases that I’m looking at offering me a saving of around £2000 if I buy from there, I’m very tempted. If anybody has any experience of this company I would love to hear it.
Samuel, I bought from ProgadgetsUK on Ebay, my Nikon D810 comes with a 3 year warranty, and I got it for £650 less than WEX
Samuel,
I’ve bought from HDEW with no problems, also from Panamoz who are excellent. I go for the best deals from these two and save lots of money. My future D850 will come from one of these two companies and you get a 3 year warranty from them. Check their T&Cs and shop with confidence.
I bought a D810 and 200-500 f5.6 from HDEW cameras in London and picked it up from their offices. The price they list is what you pay.
They can provide a VAT receipt which for a sole trader like me is important as the 20% VAT is reclaimable. The lens worked out at £745 GBP and the body £1330 which was at the time cheaper than US Ebay.
Exchange rate fluctuations mean their prices change regularly so they are not always the cheapest.
I normally buy camera gear from the usual known sources here in the USA. However, I saw a great price ( an unknown dealer ) on a Canon 5D mk III and grabbed it. Then shortly afterwards, Canon announced the 5D mk IV and to this day I have not seen real price reductions on that model. I have found no evidence that the camera I bought was a grey market item. It has outlasted any warranty that would have applied.
I bought a few gray market items myself, one being the Nikon 200- 400 mm tele. Saved a boatload of dinars; didn’t worry about the lack of warranty. Been a great lens for the over ten years I’ve owned it.
As per my personal experience, the largest dealer in the USA sells both official AND grey market gear. The difference?
* Official import = expensive; warranty is provided by USA Importer
If something goes wrong, then you can send it to any dealer for reclaims and or repair.
* Grey market = cheaper; warranty is provided by this particular dealer.
If something goes wrong, then you will have to send it to this particular dealer for reclaims and or repair.
They give you, the customer, the choice!
Personally, I have always bought cameras locally through official channels. Lenses on the other hand: I do like a good bargain. When on a trip in the USA I’ve bought “grey market” lenses from your largest dealer. No point in buying official USA stuff, since I’m returning to Europe anyway.
Note: Gray vs. grey
100% true, they make their money either way, but they craftily use it as an excuse to refuse to honour warranty repairs – fortunately these days the stuff is very very reliable so I for one will buy the best deal as long as I can check the seller is legitimate. I remember similar debates going on years ago relating to HiFi gear.
The warnings against gray imports smacks of uncompetitiveness.
When it came to another product, when asking some very tough questions, back came a verbal avalanche of words which basically could have been summed up this way: “Because we can get away with it.”
The reasons they give as to why we should not buy gray imports just don’t convince me. To refuse to repair is quite immoral and I suspect also against the law in many countries. But the ones with bigger sticks usually gets their way.
As I see even in India prices are higher than in US, forget Hong Kong. Some times the online retailers come up with deep discounts, and that is the time to buy. I have never faced any problems registering equipment with Nikon India, bought from these retailers
Hi Nasim,
Great article as usual! Like many folks I’ve bought a lot of camera gear over the years. I have chosen to never buy gray market gear. Even though this has cost me more money I feel it is important to support the manufacturer of the equipment I’m purchasing. I also do not want to face a situation, even when gear is out of warranty, when the manufacturer will not repair it.
I recently bought a used Nikon 1 V3. That current owner had bought the camera used which was a concern. I had the current owner provide me with the serial numbers on the gear. I then checked those serial numbers with Nikon Canada so they could verify that the V3 was originally imported by Nikon Canada and purchased through an authorized dealer. After verifying the shutter count and inspecting the gear, I then made the purchase. If the serial numbers would have shown that it was gray market gear, I would have walked away.
I suppose some folks may think I’m nuts, for willingly paying ‘more money’ for camera gear. I have had some gear performance issues over the years, the Nikon D600 being by far the worst. After 100 shutter actuations the camera was unusable due to the amount of oil on the sensor. I won’t go into all of the gory details, but suffice to say Nikon Canada jumped through hoops trying to fix my problems. After going through three copies of the D600 with the same issue I ended up with a D800. If I would have bought a gray market D600 I would have been out over $2,000 with no recourse and no way to get it serviced in Canada…even if I was willing to pay for that service.
Tom
I don’t think your last sentence there is reflective of actual reality. The D600 oil on sensor issue was eventually serviced by Nikon regardless of source.
I don’t think your last sentence there is reflective of actual reality. The D600 oil on sensor issue was eventually serviced by Nikon regardless of source.
I bought a D3s from a Japanese from a Ebay seller who assured me it would be covered under a Nikon warranty. At the time the price was significantly less than a new model here in the states.
Well, after I got the camera, I called Nikon who told me the serial number was not in their database so they could not service it. I returned the camera, paying the expensive return shipping, thus losing money. But Nikon did say if the camera was bought locally within Japan and I had a receipt from that country, they would service it even if I bought it on Ebay.
Since I don’t know anyone who lives in Japan that option was out. It seems Nikon creates a specific range of serial numbers when they intend to sell to a given market/ country so they know what serial numbers they have to honor or not in that particular market.
I bought a D3s from a Japanese Ebay seller who assured me it would be covered under a Nikon warranty. At the time the price was significantly less than a new model here in the states.
Well, after I got the camera, I called Nikon who told me the serial number was not in their database so they could not service it. I returned the camera, paying the expensive return shipping, thus losing money. But Nikon did say if the camera was bought locally within Japan and I had a receipt from that country, they would service it even if I bought it on Ebay.
Since I don’t know anyone who lives in Japan that option was out. It seems Nikon creates a specific range of serial numbers when they intend to sell to a given market/ country so they know what serial numbers they have to honor or not in that particular market.
Canon and Nikon in the UK repair gray. I believe it would be illegal under EU single market rules for them not to stand behind current and recent product.
They will charge you for the privilege though…
I’m a CPS and NPS member and they have never checked serial numbers, however Nikon do not provide full parts coverage to third party repairers. That means down the line some products will be uneconomic to repair. The best bet then is to sell a broken Nikon on Ebay where repairers will bid surprisingly high to strip for parts !
Good Day,
Please let me know the price, if you have
something in
stock that matches or is close to what I have
specified
below:
EOS 7D Mark II Body Kit with EF 70-300mm f/4-5.6
IS USM Lens
20.2 Megapixel CMOS (APS-C) sensor and ISO 100–
16000 (expandable to H1: 25600, H2: 51200) for
reduced noise at high ISOs and high performance
Dual DIGIC 6 Image Processors for outstanding
image quality and processing speed.
70-300mm f/4-5.6 Lens Construction: 15 elements
in 10 groups Filter Size: 58mm
Hope to read or hear from you soon as you find
some
Best Regards.
Thank you for this in-depth report. As a news reporter, I purchased a Nikon camera recently and found the prices were all the same from the authorized re-sellers. I knew something was up. So I did like most and did an internet search for the camera I was looking for. Interestingly enough, Walmart came up with the lowest price. BUT, if you look carefully, it was it is from a third-party seller.
I emailed Walmart via the media contact on their website. I said I noticed they are on Nikon’s authorized reseller, but the third party was not. I asked them if they are backing their third-party resellers if there is an issue with the product. Not surprisingly I did not get a reply.
What I did find interesting was that the third-party reseller was offering a two-year extended warranty, with lots of accessories for way less.
Has anyone purchased a camera from Walmart via the third-party reseller? What was your experience?