Grey market or locally purchased digital cameras

This is a review of some positives and negatives of obtaining digital cameras from overseas. In this review I will use the Canon rebel t2i as an example.

Grey Market

The meaning of Grey market is “the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer”. So this means that a grey camera is a product purchased elsewhere not destined for your market.

A good example if this is the Canon Rebel t2i Digital Slr. In the USA it is called Canon Rebel t2i Digital Slr, in Australia and Europe it is called Canon 550d Digital Slr, in Japan and Hong King it is called  Canon Kiss 4  Digital Slr. This is the exact same camera with exact specs but it is called a different name in a different market. Why some companies do this I am not a 100% suret.

Purchase price

People purchase Grey market cameras because of their cheap price which is usually much cheaper than purchasing from the local store. One of the reasons for such a cheap price is that most of the time you don’t pay taxes on items purchased overseas. For example, if you live in Australia you are allowed to purchase items under $1000 without incurring custom duties or other taxes.( Please check your local laws in regards to taxes and duties.)

For this review we will look at three companies that sell Digital Slr Cameras, Amazon, Digital Rev and Teds.

Amazon (USA)

Well there is not too much you can say about amazon.com, they are the largest store online and they sell everything. They are one of the safest places to purchase a camera online and offer local warranty if you are from US. If you are from outside US you most likely won’t be able to purchase a digital camera from Amazon. Amazon offers the Canon Rebel t2i.

Digital rev (Hong Kong)

Digital Rev is a well known digital camera online store from Hong Kong, they usually sell their products on eBay or through their website. You have probably noticed their camera reviews on Youtube as well. I have previously purchased a camera with Digital rev and it was a pleasant and safe experience. The delivery is approximately 3 business days and it is usually free. Digital Rev offers Canon Kiss 4 or Canon 550d.

Teds (Australia)

Teds is a well known store in Australia that has been selling Digital Cameras for a long time. Teds has just begun entering the online market. Teds is just one of stores in Australia offering Digital Cameras, another one is Harvey Norman.

Comparison of the three Stores and prices

Kiss 4, Rebel t2i and 550d are exactly the same cameras with a different name.

At the time of this review (1 December 2010) we have extracted some prices for “Body only”. From Digital Rev the Canon Kiss 4 was available for $719.00US, with free delivery and US warranty, From Amazon the Canon Rebel t2i was $699US with free delivery, From Teds the Canon 550d was $1,208.95AU (not sure of the delivery). Please note that prices change all the time.

In this comparison you can see that Amazon offers the lowest price followed by Digital rev while Teds was a distant third with almost double the price. In my opinion Teds prices are unjustifiable and a number of Australian companies are offering the similar price. This is the reason why the grey market is so massive in Australia. Why would I want to pay $1200 in Australia for the same camera I can buy in Hong Kong through Digital Rev for $719.  Australian companies like to say that it is safer to buy locally because of local warranty. The truth is that if you purchase a camera in Australia you get 1 year local Australian warranty from Canon. If you purchase from a reputable grey market seller like Digital Rev then you will get free delivery and local pickup warranty for 1 year with Digital Rev. So what exactly is the difference?

Build Quality

Canon 550d, Canon Rebel t2i and Canon Kiss 4 are exactly the same cameras with exactly the same build quality.

Resale value

Camera purchased locally has better resale value than a grey market camera, you can usually sell a Grey camera for about $100 less than a locally purchased camer.  So if you purchase a grey camera and save $300 rather than buying locally new, then you save yourself $200, which is worth it in my books. However if you purchase locally from Amazon then I would rather buy from Amazon rather than Digital Rev because you get the saving of $20 and local warranty, it is a no brainer.

Warranty

Cannon offers a 1 year warranty on digital cameras purchased locally. However, Digital Rev also offer a 1 year warranty and they also usually offer local pickup.

Conclusion

Grey cameras are a great option if you are in a part of the world where locally purchased cameras are too expensive. EG. Australia. However if you live in USA I would rather purchase from Amazon because the prices are cheaper or the same as Grey market and you get the local warranty.