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Introduction to Grey Market

Let us first clear the confusion between the grey markets, the black market, and the grey economy. Usually, people miss interpret and estimate all the three to be the same, however, there is a difference amongst the three.

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Grey Market: Sales of legal commodities or goods through a distribution channel that are also legal however not intended for sales by the original manufacturer is called selling in the market.

Grey Economy: Economy or goods and products that are not taxed or monitored by any form of the government comes under the grey economy. This is a very informal type of economy.


This term that is ‘The Grey Market’ is also spelled as ‘The Gray Market’ however the meaning is the same and it has the same definition. Let’s read the definition given below.

To be precise this is a market where the products and goods are bought and sold outside the, not within the original manufacturers authorized distribution channel. You can also refer the Grey Market to selling and importing products by dealers that are not authorized by the manufacturer; however, the selling activity is not illegal still it is unofficial.


In a Grey Market Brands that are sold are genuine these goods are also known as Grey Goods are sold not within the authorized distribution channel by authorized Market dealers, in fact, these products are sold in an unauthorized sales territory by unauthorized Market dealers. These products are sold at a lower price than the price of the same product sold in the authorized sales market and by authorized Grey Market dealers.

Explanation of the Term Grey Market

Well, the above statements have made the term quite clear. However, let’s still try to understand the same better.

The market is also known as the parallel market. The reason behind calling it the parallel market is because the products or goods are sold in a distribution channel that is not authorized by the manufacturer of the goods, this system forms a parallel distribution channel for buying and selling of goods that created two different prices for the products in the market.

Not confusing the term with the black market or the grey economy is important. The most important factor here is that the market deals with legal goods or grey goods that are sold in an unauthorized distribution channel by unauthorized dealers who are not permitted to sell the products by the original manufacturer of the products.

Most of the times these legal products are sold through an illegal distribution channel, the channels are either individual distributors or small companies who are not authorized to sell the products by the manufacturer of the product. The reason for selling in the market is selling the product at a lower rate than the rate available at the authorized dealer through the authorized distribution channel. Or selling of products in a country where the product is not available.

Types of Grey Market

Did you know that there is a variety even in the grey market? What I mean is that the market has types. Let me explain them in brief.

The original market where the legal products are sold through unauthorized distribution channels. This is where new products are sold. Mostly the market deals in new and original products.

At times it is difficult to differentiate between the new and the used goods in the market. The market where used goods are sold is also called the green market.

And the third type of market is also called the dark market. The dark market deals in secretive and unregulated trading of commodities such as crude oil.

The grey market and its explanation is now very clear. Now we need to understand this market even better by understanding, what causes give birth to the grey market? How does it affect the market, the industry, and the manufacturer? What are the pros and corns of the market? And finally, how can we prevent the loss?

So let’s begin with what gives birth or the causes of Grey Market. Unauthorized retailers gain in the grey market because of the following reasons:

1. Low Price Competition 2. Price Difference in Different Countries

Manufacturers offer different prices or different costs for the same product in different countries. This is one of their strategies to maximized profits on the basis of the demand for that product in that particular country. The grey marketers are aware of the same and purchase goods from the country they get the products at a lower cost and sell them at a low cost in the host country. This creates different prices for the same product in the host country.

3. Blocked Distribution

Some manufacturers block a few distributors from selling their products; however the distributors want to sell the product of the manufacturer, hence they buy the product from the grey market. This is where they buy the product from a cost lower than the price set by the manufacturer. This involves buying a product at a lower cost and distributing the goods though an illegal distribution channel.

4. Sales Targets

The manufacturing companies do enforce huge sales targets on their employees especially their sales team. This creates sales pressure and that is how in order to meet grey market sales targets the employees sell these products in the grey market. This gives rise to the buying and selling of a product in the grey market from a sound business.

5. High Product Cost

Some premier products have a very high selling price, some are overpriced, some are costlier than their competitors, etc. in order to sell their products and balance grey market sales in the market, the companies do sell their products into the grey market to keep their products selling and rolling.

How does the Grey Market Effect Business? 1. Affects Profitability

In the grey market, the goods are sold at a lower cost than the cost decided by the company. The company sets the prices bases their calculations of profits. When goods are sold at a lower cost the company’s profitability is affected.

2. Brand Reputation

Products of the grey market do not come with a guarantee backed by the company. If the products sold in the grey market do face an issue with its performance the name of the brand will be affected.

3. Cannot Guarantee the Product

As discussed earlier that in the grey market it is very difficult to differentiate between the new products and used ones. You never know what the grey marketer might sell to you an original new product or a used one. Trusting the grey market might also not be as easy as it seems.

4. Multiple Market Prices 5. Effects the Government

Grey goods are goods that are sold without tax charges. Taxes are applied to both buying and selling of the products. An increase in the transactions puts the government to loss.

Pros and Cons

Customer’s Point of View:

Products are available at a cost lower than the normal market price.

Products that are not available in the market in a specific country are also made available in the market.

The goods available in the grey market do not come with a guarantee or a warranty from the company.

The grey goods are not trustable as you never know if the products supplied are used or new products.

Grey goods do not have an after-sales service available for the products.

The customer cannot differentiate between the original and the duplicate product in a grey market.

Products not made as per the specific audience is sold here

Companies, Industry, and Nations Point of View:

The companies that sell very high-value goods for an exorbitant value can also supply their goods through the grey market to increase the sales of their products.

To meet the sales targets the employees sell the products through the grey market in order to reduce the cost of the product.

The company’s brand image and reputation come at stake for the grey marketers can also supply products that are not original

Products are sold without taxes which is why the government loses out on a collection of taxes.

The product has a dual price in the market due to parallel marketing or parallel imports.

The company cannot guarantee the products bought from the grey market.

Business relationships and client confidence are at stake because the grey market is used to distribute the products in the market.

An increase in the transaction of the grey market does affect the economy and the turnover of the industry. This affects the market in the industry.

Customers lose their trust on the company products as they do not get the quality they have paid for.

The products are sold out of the manufacturer’s authorized distribution channel.

Everything above states that company the industry and the nation suffer a huge loss due to the parallel market the loss is not just monetary, it is also a cost to the reputation and the brand image which is much costlier than the monetary gains and losses.

How to Avoid the Losses?

Every problem in this world has a solution and hence the problems that arise in the market can also be taken care of by working ways out to stabilize or sorting these problems out. Let’s see how.

The company should set a single cost policy for its products.

The companies in the industries need to increase their distribution channels in order to avoid grey marketing.

Strict terms and conditions for distributors.

Track the distribution channels and distributors and the stock rolled out to them.

Manage manufacturing costs in order to stabilize the cost of products and reduce selling costs in comparison to their competitors.

Control over the product supply market needs to be kept by the company and the distributors.

Set realistic goals for the employees of the company especially the sales team to avoid selling the same in the grey market.

Recommended Articles

This is a guide to Grey Market. Here we discuss the Introduction to Grey Market, types of grey market and the pros and cons of grey market. You can also refer to our other related articles to learn more –

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Gradient Descent And Its Types

This article was published as a part of the Data Science Blogathon.

The gradient descent algorithm is an optimization algorithm mostly used in machine learning and deep learning. Gradient descent adjusts parameters to minimize particular functions to local minima. In linear regression, it finds weight and biases, and deep learning backward propagation uses the method.

The algorithm objective is to identify model parameters like weight and bias that reduce model error on training data.

In this article, we will ex types of gradient descent. So let’s get started with the article.

What is a Gradient?

dy = change in y

dx = change in x 

A gradient measures how much the output of a function changes if you change the inputs a little bit.

In machine learning, a gradient is a derivative of a function that has more than one input variable. Known as the slope of a function in mathematical terms, the gradient simply measures the change in all weights about the change in error.

Learning Rate:

Types of Gradient Descent: 1. BATCH GRADIENT DESCENT:

Some benefits of batch are its computational efficiency, which produces a stable error gradient and a stable convergence. Some drawbacks are that the stable error gradient can sometimes result in a state of convergence that isn’t the best the model can achieve. It also requires the entire training dataset to be in memory and available to the algorithm.

class GDRegressor: def __init__(self,learning_rate=0.01,epochs=100): self.coef_ = None self.intercept_ = None chúng tôi = learning_rate self.epochs = epochs def fit(self,X_train,y_train): # init your coefs self.intercept_ = 0 self.coef_ = np.ones(X_train.shape[1]) for i in range(self.epochs): # update all the coef and the intercept y_hat =,self.coef_) + self.intercept_ #print("Shape of y_hat",y_hat.shape) intercept_der = -2 * np.mean(y_train - y_hat) self.intercept_ = self.intercept_ - ( * intercept_der) coef_der = -2 * - y_hat),X_train)/X_train.shape[0] self.coef_ = self.coef_ - ( * coef_der) print(self.intercept_,self.coef_) def predict(self,X_test): return,self.coef_) + self.intercept_


Fewer model updates mean that this variant of the steepest descent method is more computationally efficient than the stochastic gradient descent method.

Reducing the update frequency provides a more stable error gradient and a more stable convergence for some problems.

Separating forecast error calculations and model updates provides a parallel processing-based algorithm implementation.

A more stable error gradient can cause the model to prematurely converge to a suboptimal set of parameters.

End-of-training epoch updates require the additional complexity of accumulating prediction errors across all training examples.

The batch gradient descent method typically requires the entire training dataset in memory and is implemented for use in the algorithm.

Large datasets can result in very slow model updates or training speeds.

Slow and require more computational power.

By contrast, stochastic gradient descent (SGD) changes the parameters for each training sample one at a time for each training example in the dataset. Depending on the issue, this can make SGD faster than batch gradient descent. One benefit is that the regular updates give us a fairly accurate idea of the rate of improvement.

However, the batch approach is less computationally expensive than the frequent updates. The frequency of such updates can also produce noisy gradients, which could cause the error rate to fluctuate rather than gradually go down.


You can instantly see your model’s performance and improvement rates with frequent updates.

This variant of the steepest descent method is probably the easiest to understand and implement, especially for beginners.

Increasing the frequency of model updates will allow you to learn more about some issues faster.

The noisy update process allows the model to avoid local minima (e.g., premature convergence).

Faster and require less computational power.

Suitable for the larger dataset.

Frequent model updates are more computationally intensive than other steepest descent configurations, and it takes considerable time to train the model with large datasets.

Frequent updates can result in noisy gradient signals. This can result in model parameters and cause errors to fly around (more variance across the training epoch).

A noisy learning process along the error gradient can also make it difficult for the algorithm to commit to the model’s minimum error.

Implementation of sgd classifier in sklearn:

from sklearn.linear_model import SGDClassifier X = [[0., 0.], [1., 1.]] y = [0, 1] clf = SGDClassifier(loss="hinge", penalty="l2", max_iter=5), y) SGDClassifier(max_iter=5)

Since mini-batch gradient descent combines the ideas of batch gradient descent with SGD, it is the preferred technique. It divides the training dataset into manageable groups and updates each separately. This strikes a balance between batch gradient descent’s effectiveness and stochastic gradient descent’s durability.

Mini-batch sizes typically range from 50 to 256, although, like with other machine learning techniques, there is no set standard because it depends on the application. The most popular kind in deep learning, this method is used when training a neural network.

class MBGDRegressor: def __init__(self,batch_size,learning_rate=0.01,epochs=100): self.coef_ = None self.intercept_ = None chúng tôi = learning_rate self.epochs = epochs self.batch_size = batch_size def fit(self,X_train,y_train): # init your coefs self.intercept_ = 0 self.coef_ = np.ones(X_train.shape[1]) for i in range(self.epochs): for j in range(int(X_train.shape[0]/self.batch_size)): idx = random.sample(range(X_train.shape[0]),self.batch_size) y_hat =[idx],self.coef_) + self.intercept_ #print("Shape of y_hat",y_hat.shape) intercept_der = -2 * np.mean(y_train[idx] - y_hat) self.intercept_ = self.intercept_ - ( * intercept_der) coef_der = -2 *[idx] - y_hat),X_train[idx]) self.coef_ = self.coef_ - ( * coef_der) print(self.intercept_,self.coef_) def predict(self,X_test): return,self.coef_) + self.intercept_


The model is updated more frequently than the stack gradient descent method, allowing for more robust convergence and avoiding local minima.

Batch updates provide a more computationally efficient process than stochastic gradient descent.

Batch processing allows for both the efficiency of not having all the training data in memory and implementing the algorithm.

Mini-batch requires additional hyperparameters “mini-batch size” to be set for the learning algorithm.

Error information should be accumulated over a mini-batch of training samples, such as batch gradient descent.

it will generate complex functions.

Configure Mini-Batch Gradient Descent:

The mini-batch steepest descent method is a variant of the steepest descent method recommended for most applications, intense learning.

Mini-batch sizes, commonly called “batch sizes” for brevity, are often tailored to some aspect of the computing architecture in which the implementation is running. For example, a power of 2 that matches the memory requirements of the GPU or CPU hardware, such as 32, 64, 128, and 256.

The stack size is a slider for the learning process.

Smaller values ​​allow the learning process to converge quickly at the expense of noise in the training process. Larger values ​​result in a learning process that slowly converges to an accurate estimate of the error gradient.

In this article, we learned about different types of gradient descent. The key takeaways from the article are:

The mini-batch steepest descent method is the recommended method because it combines the concept of batch steepest descent with SGD. Simply divide your training dataset into manageable groups and update each individually. This balances the effectiveness of batch gradient descent with the durability of stochastic gradient descent.

Stochastic Gradient Descent (SGD) sequentially modifies the parameters of each training sample in each training sample of the dataset. This allows SGD to be faster than batch gradient descent. One benefit is that the regular updates give us a fairly accurate idea of the rate of improvement.

In general, the higher the learning rate, the faster the model can learn at the expense of the non-optimal final set of weights. With a low learning rate, the model can learn a more optimal or globally optimal set of weights, but it can take considerable time to train.

The media shown in this article is not owned by Analytics Vidhya and is used at the Author’s discretion.


Financial Risk And Its Types

Financial risk is the probability of losing money on an investment or business endeavor. Operational risk, credit risk, and liquidity risk are just a few examples of the various types of financial hazards. Financial risk is the possible loss of capital to an interested party.

What are the Risks?

Risk is the possibility of an unanticipated or negative consequence. Risk can be defined as any action or behavior that raises the possibility of a loss of any kind. There are various risks that a business could face and need to handle. Business risk, non-business risk, and financial risk are the three categories into which hazards are generally divided.

Business Risk

To increase earnings and shareholder value, businesses take these kinds of risks on their own. For instance, businesses launch new products with high-risk marketing strategies to boost sales. The possibility of a product or service failing and causing losses to the owner and the shareholders, is called business risk.

Non-Business Risk

Businesses are unable to control this category of hazards. Non-business risk is a word used to describe risks that result from political and economic imbalances.

Financial Risk

As the name suggests, financial risk refers to a risk that could result in a company losing money. Financial market instability and losses brought on by changes in stock prices, currencies, interest rates, and other factors are the main causes of financial risk.

What is Financial Risk?

The probability of financial loss while making an investment or starting a business is called financial risk. Operational risk, liquidity risk, and credit risk are a few of the more prevalent and distinct financial hazards.

A form of risk known as financial risk has the potential to cause interested parties to lose money. Governments that are unable to control monetary policy may end up defaulting on bonds or other debt obligations. Corporations may fail in an endeavor that puts a strain on their finances while also running the risk of defaulting on the debt they take on.

The inability to control monetary policy and/or other debt-related difficulties is referred to as financial risk in government sectors. Learn more about the relationships between different sectors, such as business, government, markets, or individuals, and financial risk.

Types of Financial Risks

Financial risk is a result of market fluctuations, which can be influenced by a variety of causes. As a result, we can divide financial risk into a variety of categories, including market risk, credit risk, liquidity risk, operational risk, and legal risk.

Market Risk

Changes in the prices of financial instruments are what cause this type of risk to arise. There are two types of market risk: directional risk and non-directional risk. Changes in stock prices, interest rates, and other factors can all have an impact on directional risk. On the other side, the non-directional risk may be connected to volatility threats.

Credit Risk

This type of risk arises when one does to fulfill their obligations to counterparties. Two types of credit risk are sovereign risk and settlement risk. Foreign exchange policies that are challenging to implement often result in sovereign risk. However, when one party pays while the other does not uphold the commitments, settlement risk arises.

Liquidity Risk

This kind of risk results from a failure to complete transactions. Liquidity risk comes in two flavors: financing liquidity risk and asset liquidity risk. When there aren’t enough buyers or sellers to fill buy and sell orders, respectively, liquidity risk arises.

Operational Risk

Operational failures like bad management or technology mistakes cause this type of risk. Two types of operational risk include fraud risk and model risk. Lack of controls and improper implementation of models both increase the risk of fraud.

Legal Risk

This type of financial risk results from legal consequences like lawsuits. Legal risk arises whenever a business must deal with monetary damages resulting from legal actions.

Risks to Businesses’ Finances

Why do firms run the danger of losing money? Multiple macroeconomic factors, shifting market interest rates, and the potential for default by sizable organizations or sectors can all contribute to financial risk. People who own businesses incur the danger of losing money if they make choices that will make it difficult for them to make payments on their obligations or earn an income. For their constant expansion, businesses frequently need to look for funding from other sources. The company or business seeking the money and the stakeholder investing in the company’s business both face financial risk as a result of this funding requirement.

Market Risks Associated with Finance

Given the variety of factors that might affect them, financial markets are frequently a center of financial hazards. When a crucial market sector experiences a financial crisis, it has an impact on the overall market’s financial situation. The global financial crisis of 2007–2008 provides evidence of market risk. Businesses started to fail, investors suffered huge losses, and the government was pressured to change its monetary policies.

Benefits and Drawbacks of Financial Risk

The benefits and drawbacks are listed below −


Growth − Risk is a necessary component of doing business, and organizations may need to obtain money through debt to grow and enter a new market. Although it may seem like a burden to the business, financial risk must be accepted if a company is to perform well and increase revenues through development and expansion.

Investors and management should be aware − Investors and management should take specific action to prevent further harm when there is financial risk.

Evaluation of value − Financial risk in particular enterprises or projects aids in income evaluation through the risk-reward ratio, which indicates the value of a given company or project.

It is simple to comprehend the function of risk involved in the organization when financial risk is examined using various ratios.

Can have catastrophic effect − When it comes to the government, financial risk can result in bonds and other debt from financial institutions defaulting, which might harm the nation and the world economy in the long run.

Not under our control − Financial risk that cannot be controlled by a company operating in a certain market, such as risk resulting from international variables, natural disasters, war, changes in interest rates, and changes in governmental policy.

Long-term consequences − If the financial risk is not properly managed at the correct time with the right tactics, it can harm the business’s finances and reputation as well as cause investors and lenders to lose faith in it. It can be difficult for a business to recover from such setbacks.

Impact − The entire industry, market, and economy may be affected by financial risk.

The bottom line

Individual, business, and governmental finances all take some level of financial risk in order to grow. If used and handled properly, such risk can be a sign of progress and result in success. Financial leverage measures, such as interest coverage ratios, debt-to-asset ratios, and debt-to-equity ratios, are used in business to determine how much debt a company is carrying in the market. When managed with revenue growth and business expansion, financial risk can be beneficial. However, if not handled correctly, it may result in the company’s bankruptcy and loss for the business’s investors and lenders.

How Enterprise Search + Business Intelligence Reveal Market Pulse

Last year was one of rapid change, and 2023 shows no sign of this trend slowing down.

Economies and markets have changed, how consumers behave has shifted, search algorithms are being updated, the SERP results are evolving, and the scope of what we do as Enterprise SEO professionals is growing.

As organizations focus on aligning operations with a laser focus on the customer experience, understanding how consumers behave at both the macro and micro levels has become an enterprise SEO imperative.

For many, it always has been. However, the unpreceded shift and challenges brought about by the global pandemic mean that the monthly historical snapshot has given way to a pressing need to keep a daily pulse on trends in real-time.

Using data, technology, and market trends to their fullest potential will help organizations realize new opportunities.

From real-time insights into market demand volatility through to granular details into how consumers are searching online, there is a wealth of data to be activated.

Marketers can no longer rely on old forecasting models, no matter how complex, detailed, or pretty they look.

Enterprise marketers now need to understand the pulse of the market so they can dynamically adapt to both expected and unexpected events in their vertical.

In doing so, you can bridge the gap between assumptions of what will happen and what the current, real-time reality has proven to be.

Being Aware of What Is Going on in Your Broader Markets

However, working in large enterprises requires a shift in mindset towards understanding not just the business, but the broader market and economic implications that may affect how you tailor your strategy.

Overall market factors shape short, mid, and long-term strategies.

Utilize models such as PEST analysis to understand what is going on in the market from a political, economic, social, and technological perspective:

Political – Brexit, elections, laws, and regulations.

Economic – COVID-19 restrictions, industries that are gaining or losing.

Social – Consumer behaviors, attitudes and culture, fashion and shopping trends.

Technological – Developments and innovations to help better understand the above.

Combining Business & Search Intelligence to Understand the Pulse of the Customer

In many ways, search is the voice of the customer.

Search queries contain intent signals, SERP analysis shows how customers like to consume content, and keyword reports help us produce content that resonates.

Granular search data can tell us much about what consumers are doing, what they care about, and how they think.

Keeping a daily pulse on new insights impacting your market and on what is changing in the SERPS on a daily basis should be of mandatory importance for those who want to benefit from fresh, new opportunities.

For example, a slight ranking change on high search volume-based keywords can impact revenue in a big way in just one day. During important seasons (especially in retail), subtle category-related demand shifts will require granular action.

New product launches require daily monitoring so stakeholders can see the daily impact and make adjustments to the offering.

As market fluctuations and consumer emotions drive new types of demand, marketers are under pressure to develop an even more in-depth understanding of their customers’ preferences while understanding market trends.

More and more marketers need to truly understand their customers and use this understanding to drive new experiences that resonate with consumers.

Utilizing search trends and combining this with business intelligence findings means marketers can find new patterns and opportunities at both a macro level and implement strategies at the most granular level.

This also helps you rapidly respond to dynamic changes in current and upcoming consumer behavior.

With business intelligence powered by search insights, companies can make sound and strategic decisions to achieve their goals, be it understanding what their customers really need or by predicting their future demands.

The relationship between BI and search is symbiotic and can dramatically improve ROI.

Utilizing Business Intelligence to Understand and Visualize the Pulse of the Market

More than ever, organizations are looking for business intelligence (BI) to transform data into insights that can quickly be acted upon. BI enables enterprise SEO professionals to easily analyze insights for larger-than-usual data sets to uncover new opportunities and highlight campaign strategy inefficiencies.

Here is an example from my company:

This type of intelligence can tell you what is happening now and what happened in the past.

Many types of business intelligence can help deliver digestible snapshots of the current state of what is happening in your market, not just for SEO but also for digital, sales, product, and customer service functions.

It can help show what product attributes are most important, price sensitivity fluctuations, brand preferences, and inventory needs, and more.

This can be visualized via daily dashboards, visualizations, and custom-based reports and can be used to:

Analyze industry trends in real-time.

Visualize category demand and inventory in real-time.

Compare historical data to what is happening now.

Create and forecast based on predictive modeling.

Aggregate different sources of data.

Identify new buyer trends.

Find inefficiencies in product or pricing strategy.

Find key correlations between search activity and external market factors.

Plan for seasonality.

Evaluate marketing campaign effectiveness.


Going forward into Q2 of this year, Enterprise SEO success lies with the ability to understand the pulse of their entire industry landscape and being agile enough to quickly change search strategies and tactics based on real-time insights.

Over the last year, Enterprise SEO has become front and center of digital marketing strategies.

To keep ahead, SEO professionals have to become more agile in their approach to understanding market trends and their customers.

Technology can help provide insights with both breadth and depth so you can execute search and inform digital campaigns with speed and high precision.

As a collective community of SEO pros, we all need to keep a close eye on the pulse of the market and be prepared to respond to new conditions in an instant.

Both markets and consumers are giving us clear signals of intent on a far more regular basis.

Those that combine business intelligence and search insights to uncover and act on those opportunities will propel their SEO even further forward this year.

More Resources:

Image Credit

Screenshot taken by author, March 2023

Metformin Weight Loss: Truth Behind Its Side Effect

Recently people are much talking about the drug Metformin and its “miracle” weight-loss qualities.

What is Metformin?

Metformin is a drug prescribed to address type-2 diabetes. It is also prescribed for obese or overweight individuals at risk of developing diabetes, i.e., prediabetic.

How it Works?

Metformin works to address diabetes by improving the efficiency and effectiveness with which the body’s muscles use glucose and by minimizing glucose release by the liver. It also promotes better functioning of insulin, thereby raising insulin sensitivity. So, it can also be prescribed for overweight individuals who display insulin resistance.

With better insulin function, your blood sugar levels drop concomitantly. Metformin drugs like Glucophage are usually used in conjunction with other medications. Doctors suggest lifestyle changes to maximize the benefits of this drug regime.

Currently, FDA, or the U.S. Food and Drug Administration, has only cleared the use of Metformin to treat type 2 diabetes and considered it the first-line treatment.

Does Metformin Cause Weight Loss and How?

Metformin has been shown to promote moderate weight loss among the people it is prescribed for. It is very different compared to other diabetes drugs, which usually make people put on weight. But it’s important to note that weight loss is a secondary side-effect. The medication isn’t prescribed for weight loss, but dropping a few pounds is a happy coincidence.

Initially, taking Metformin makes most patients quite sick to their stomachs. They suffer nausea, diarrhea, vomiting, and an upset stomach. These side effects could cause a temporary but almost immediate loss in water weight. The side effects can also last quite a while, causing a decrease in appetite and a reluctance to eat, which may also cause weight reduction.

But Metformin has an array of other stimulatory mechanisms responsible for weight loss. For one, the body either produces more leptin or becomes more sensitive to leptin – the exact modality remains unclear. The leptin hormone is responsible for increased feelings of fullness, which curb appetite. The GLP-1 hormone is also thought to be released with this drug, which further blocks the GLP receptor and suppresses appetite. The simultaneous function of these hormones could promote weight loss by limiting and regulating the body’s need to eat.

Metformin also supposedly reduces visceral fat stored around organs in the abdominal cavity. Because it burns this fat, patients may see a reduction in their waistline and belly fat. It may also affect the gut bacteria or microbiome ecosystem, the enhanced activity of which also interplays with other hormones and brain activity to reduce hunger and food intake.

Is the Weight Loss from Metformin Permanent?

Weight loss may be a reason for prescribing the drug. In case you are prediabetic or have metabolic complications due to obesity. But weight loss is temporary and dependent on several factors. If you take Metformin, continue eating indiscriminately, and remain sedentary, you may not even lose weight. But with all other factors remaining the same, you will probably gain the weight back once you regain your normal appetite – it doesn’t substitute an active lifestyle. In any case, you can only lose about 3-5 kg in about four or five years. The proper diet and fitness regime can sustain and increase gradually over the years.

Metformin isn’t a magic drug that promotes sudden or drastic weight loss. It isn’t a quick fix for an unhealthy routine. If you have to lose a lot of weight, for example, 10-15 kgs, then Metformin’s contribution is minimal.

Is using Metformin for weight loss Safe?

So far, it hasn’t proven problematic for Type 2 diabetes and parallel concerns. However, since it isn’t prescribed for type 1 diabetes, obesity, or weight management, you need to be responsible for its use. A doctor should prescribe it and must use only the stated amounts. Dosages should be adjusted based on any side effects, significantly if you don’t suffer from the primary issue targeted i.e., Type 2 diabetes. Metformin use for weight loss is unlikely to develop serious side effects but should be strictly monitored. Depending on their body types and metabolic activity, it may only be effective for some.

Adults are not to have more than 25 ml a day – the ideal dosage is between 5-8.5 ml daily. For children, the recommended dosage is only 5ml. The range for tablets is between 500 and 1000 mg and should never exceed 2500 mg. Only liquid and standard tablets are currently available on the market.

Some extended-release Metformin tablets were recalled recently due to the suspected presence of a potential carcinogen. Until the risk of cancer-causing ingredients is ruled out, they will remain unavailable.


Metformin can be used if the situation so necessitates it. But taking a drug as a shortcut is never a good idea. As we’ve seen with the recall, medicines can have unintended consequences. It’s always best to lose weight naturally and healthily.

How Much Internet Speed Does Your Business Need?


Visit the FCC Broadband Speed Guide to help determine the download and upload business broadband speeds you need for data-intensive tasks, such as sending and receiving large files.

What are the types of internet connections?

Various business internet service types serve specific purposes and offer different speeds. The type of internet connection you have depends on your area’s infrastructure, your business location, and the internet plan you purchase. 

Here are the four most popular internet categories and what you can expect in speed for each:

DSL: DSL stands for digital subscriber line. A DSL connection runs through your landline business phone system. The average DSL download speed starts at around 6 Mbps, while the average upload speed starts at approximately 1 Mbps.

Cable. Cable internet uses the same wiring that delivers cable television to your home. The average download speed for cable internet ranges from 10 Mbps to 500 Mbps, while the upload speeds can range from 5 Mbps to 50 Mbps. If you’re considering cable vs. DSL, note that cable is much faster, but DSL is less expensive.

Fiber optic. Fiber-optic business internet uses fiber-optic cables instead of copper wires like its cable equivalent. Fiber-optic cables use light signals to deliver data to and from your devices. Fiber internet can support download speeds up to 1 gigabit per second (Gbps), but its more common speeds range from 150 Mbps to 500 Mbps. Upload speeds range from 65 Mbps to 100 Mbps.

Satellite internet. Satellite internet uses radio waves to communicate with satellites in space to deliver internet connections. Download speeds can range from 12 Mbps to 150 Mbps, while upload speeds are typically around 3 Mbps.

Did You Know?

If you’re evaluating a mobile hotspot vs. satellite internet for remote business needs, note that satellite internet is more expensive and isn’t as fast or flexible as a mobile hotspot.

How fast should your business internet be?

The average business requires at least 25 Mbps of download speed and 3 Mbps of upload speed to conduct everyday tasks like emailing, exchanging files, using cloud-based software, and videoconferencing. In fact, these speeds are the FCC’s official broadband definition minimums. 

However, business internet speed requirements vary significantly between businesses, and your speed needs will likely increase as your business grows and you adopt more data-intensive processes. 

Consider these factors when determining your internet speed requirements: 

What type of business do you operate?

Do you regularly upload and download large files?

Are your internet needs limited to sending emails and communicating with customers?

To what extent does your business depend on fast internet speeds?

How many employees will use the network at any given time?

Ideal internet speeds based on task

Use the following chart to get an idea of your ideal internet speeds based on the number of devices being used and the online tasks you need to perform:

Number of users/devices




5 Mbps

Online browsing, email, and research


25 Mbps

Downloading large files, business communications and basic business Wi-Fi use


75 Mbps

Video streaming, numerous point-of-sale transactions and frequent file-sharing


150 Mbps

Video conferencing, frequent cloud computing and data backups


250 Mbps

Seamless streaming, conferencing and server hosting


500 Mbps

Multiple servers hosted, heavy online backups and constant cloud-based computing


1,000 Mbps (1GB)

Extreme speed operations with zero interruptions

Consult your ISP if you’re still unsure how much bandwidth your business needs. Many providers offer online internet bandwidth need calculators to help you better understand your needs and options.

How do you choose a business internet provider?

To find out what ISPs are available in your area, check out the InMyArea online tool. Input your address or ZIP code to see available provider options.

When you have a good idea of your business’s internet speed needs, discuss your options with available ISPs to evaluate the best choice for your business. 

Consider the following when deciding on an internet service provider: 

Speed. What is the fastest available speed at a price you can afford? 

Customer service. Will your provider help troubleshoot technical issues? Your business depends on your internet uptime, and you can’t afford to be ignored in times of trouble. 

Contracts. Will you be locked into a lengthy contract with your provider? A more flexible contact is beneficial if the provider doesn’t deliver top speeds or you find a new provider that better meets your needs. 


Internet speeds may slow over time as the network ages and more people join. Run a regular speed scan on your network to ensure you’re getting the speed you pay for.

What are the best business internet service providers?

The best internet service providers offer top-quality service with optimal speeds and excellent uptime. If you’re seeking a new provider, consider the following options:

AT&T. AT&T offers small businesses a wide selection of service plans that vary by speed and price. To learn more details about available locations and prices, read our in-depth AT&T review.

Verizon. Verizon offers extensive service plans for businesses of all sizes. Learn about plan speeds and prices in our full Verizon review.

Comcast Business. Comcast Business offers five service plans, all of which include a dynamic IP address and no data caps. Read our Comcast Business review for more information.

Cox. In addition to business internet services, Cox provides midsize and enterprise organizations with hosted VoIP phone services, trunking phone services, and business television solutions. For more information, read our in-depth Cox review.

Spectrum Business. Spectrum serves more than 9,000 ZIP codes in 43 states and offers small businesses three service plans that vary by speed and price. Read our full Spectrum Business review for more information.

Kimberlee Leonard contributed to the reporting and writing in this article.

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