Question on "gray" listed sellers

[cmiller]

Hey all, I'm curious as a follow up to a question about buying a 18K/TT Lady Datejust Black MOP/diamond dial with fluted bezel off Ebay from a "gray" listed seller, who has a great reputation on the net . I'd like to get this watch for my wife for Christmas butmy local AD can only offer it at $9400 OTD and this one on Ebay is $7785 shipped. So how are "gray" listed sellers able to offer brand new watches for thousands less, in this case $ 2000 off list price, than an AD especially when I thought Rolex was very strict on pricing? Is the markup that much with an AD?. And are there any problems registering a watch with Rolex that's not bought from an AD? Any comments or opinions would be great!

Thanks!