- Original Poster
- #1
Hi all, I'd be interested to hear your thoughts on the following:
My ecommerce site sells high end IT equipment for a very niche market, there are a few specialists in this market and we all offer similar types of products.
In the wider market there are companies offering lower quality IT systems at cheaper prices however they are generally mass market companies.
One of these cheaper companies approached us about a year ago with a tentative offer for our business, we exchanged a few emails but I wasn't interested in selling really and felt like they were just tyre kickers.
Soon after they started advertising products similar to ours at cheaper prices. Their site is a little misleading at times with regards to specification and even with them now advertising in our niche we didn't notice any real downturn in our own sales levels.
Doing my normal competitor analysis and price checking I have noticed that their prices are now at ridiculously low levels. I have been working in this area for many years and know how much components cost, currently their margins are around the 3% - 4% mark which in my opinion is unsustainable in the market we are in.
Now this company has woeful customer service by all accounts if you read reviews in forums of them. Also they have setup reviews with the likes of TrustPilot which on the face of it show high star ratings however if you actually read them it is instantly apparent that many of them are fake, you can tell that the majority have been written by people whose 1st language is not english (they are a UK only seller) and some of the 5 star reviewers have also left 5 star reviews for air conditioning services in the US, kitchen knives in Australia...
Buried further down there are plenty of 1 and 2 star reviews complaining about them.
My question is (sorry about the long intro) would it be illegal or unethical of me to highlight these 'issues' on my site?
I'd rather focus on my own offerings however they are blatantly advertising everywhere we do, have discounted their products to ridiculously low levels, and are misleading customers with both specifications and fake reviews.
Our own business isn't too bad at the moment, it is quiet and that could be due to a number of things however I'm pretty certain that this competitors business practices are not helping us at all.
What would you do?
My ecommerce site sells high end IT equipment for a very niche market, there are a few specialists in this market and we all offer similar types of products.
In the wider market there are companies offering lower quality IT systems at cheaper prices however they are generally mass market companies.
One of these cheaper companies approached us about a year ago with a tentative offer for our business, we exchanged a few emails but I wasn't interested in selling really and felt like they were just tyre kickers.
Soon after they started advertising products similar to ours at cheaper prices. Their site is a little misleading at times with regards to specification and even with them now advertising in our niche we didn't notice any real downturn in our own sales levels.
Doing my normal competitor analysis and price checking I have noticed that their prices are now at ridiculously low levels. I have been working in this area for many years and know how much components cost, currently their margins are around the 3% - 4% mark which in my opinion is unsustainable in the market we are in.
Now this company has woeful customer service by all accounts if you read reviews in forums of them. Also they have setup reviews with the likes of TrustPilot which on the face of it show high star ratings however if you actually read them it is instantly apparent that many of them are fake, you can tell that the majority have been written by people whose 1st language is not english (they are a UK only seller) and some of the 5 star reviewers have also left 5 star reviews for air conditioning services in the US, kitchen knives in Australia...
Buried further down there are plenty of 1 and 2 star reviews complaining about them.
My question is (sorry about the long intro) would it be illegal or unethical of me to highlight these 'issues' on my site?
I'd rather focus on my own offerings however they are blatantly advertising everywhere we do, have discounted their products to ridiculously low levels, and are misleading customers with both specifications and fake reviews.
Our own business isn't too bad at the moment, it is quiet and that could be due to a number of things however I'm pretty certain that this competitors business practices are not helping us at all.
What would you do?
