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Reseller competition concern as Sydney PC distributor merges with online retailer

Reseller competition concern as Sydney PC distributor merges with online retailer

Existing partners concerned about competition from new company’s online retail affiliates.

Sydney-based PC wholesaler, Tervan, has merged with online retailer, OZB Enterprises, sparking concerns about increased competition for resellers in Australia.

Sources close to ARN confirmed that the merger is expected to cause friction within Tervan’s existing customer base with one reseller customer - who asked to remain anonymous - admitting they were “not comfortable” facing potential competition from a long-term wholesale supplier.

Previously named OOZBOOM, OZB Enterprises runs online reseller PC Byte and online retailer MechKB.com, prompting questions from local partners as to how the merger will play out in the channel.

Established in 2013, PC Byte offers computer parts, storage, flash memory, networking, peripherals and accessories, representing vendors such as Dell, Intel, Samsung and Toshiba among others.

In addition, MechKB.com - also established in 2013 - specialises in a wide range of mechanical keyboards and accessories, citing gaming vendors such as Logitech and Topre as partners.

According to an email sent to Tervan customers, OZB Enterprise will now take full responsibility for the business operations of the Newington-based computer business, including sales activities, product warranties and other services.

ARN can confirm that the business will continue operating as normal and still keep the same product range, with the company also indicating that it would increase the supply of more popular products, without offering details.

“The same services and warranty procedures will take place, and will not impact on the service provided to you,” the email stated. “All customers can still use same email address to reach sales and warranty.”

Tervan managing director, Jason Huang, confirmed the two companies had merged and was now operating from OZB premises in Newington, but refused to comment when questioned on whether or not the new business would be directly competing with its reseller partners.

Calls to numbers listed on the pcbyte website and in the email to customers went unanswered at the time of publication.

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