{"id":9516,"date":"2021-01-05T12:22:38","date_gmt":"2021-01-05T12:22:38","guid":{"rendered":"https:\/\/www.revuze.it\/?p=9516"},"modified":"2021-01-05T12:22:38","modified_gmt":"2021-01-05T12:22:38","slug":"amazon-counterfeit-products-problem","status":"publish","type":"post","link":"https:\/\/www.revuze.it\/blog\/amazon-counterfeit-products-problem\/","title":{"rendered":"The Amazon Counterfeit Products Problem Quick Guide (2021 Updated)"},"content":{"rendered":"
For eCommerce sellers, Amazon is more than a shopping platform- it is a tool that they cannot afford to disregard. The platform has grown to become one of the top-most platforms, offering a pool of opportunities for authentic business owners- big or small alike. However, the rise of fake merchandise is now posing a threat for brands present on the channel.<\/span><\/p>\n As per <\/span>Global Brand Counterfeiting Report<\/span><\/a>, counterfeiting losses coming through digital channels is about 25% of $1.8B, and it is rampant on Amazon (aka The Amazon Counterfeit Products Problem). Becoming a trillion-dollar economy in itself, the business of counterfeit products devastatingly impacts the authentic brands. Another report by the Organization for Economic Cooperation and Development states that fake products now estimates 3.3% of the global trade. Numbers for the future are more alarming. International Trademark Association has estimated the <\/span>growth in fakery to $4.2 trillion by 2022.\u00a0<\/span><\/a><\/p>\n Apart from dipping revenue, over-production costs, fraudulent product warranty claims, product liability claims are the other factors that impact the brand’s economic stability. Besides, it is the brand’s reputation that is worst-hit and may prove fatal in some cases.\u00a0<\/span><\/p>\n The counterfeit problem is significant- mainly for brands and shareholders, consumers, and even for eCommerce platforms like Amazon. On February 1, 2019, Amazon, while reporting its year-end earnings for financial 2018 and SEC filing, acknowledged for the first time that the company might be unable to prevent sellers from trafficking fake and pirated merchandise.\u00a0<\/span><\/p>\n Nike<\/span><\/a> recently stopped selling products through Amazon, stating unlicensed and fraud sellers as a contributing factor.\u00a0<\/span><\/p>\n However, the giant retailer did not let the problem to dominate. It has now taken some crucial steps to combat the issue of counterfeit products. This includes the new <\/span>Counterfeit Crimes Unit launched in 2020<\/span><\/a>. The unit is focused on identifying the sellers who list fake products on the channel, take legal action against such sellers, and prevent future fake-listings from happening on the channel.\u00a0<\/span><\/p>\n Undeniably, Amazon has switched on aggressive mode to fight counterfeit products since 2019. The following numbers from 2019 warrant its stand on the grave issue:<\/span><\/p>\n <\/p>\n Amazon’s stand on counterfeit products is clear, and so is its goal. Thanks to the steps being taken by the organization, 99.9% of the products on Amazon did not have a single counterfeit issue reported. The new Counterfeit Crimes Unit is all set to bring down the number of counterfeit goods to zero. While some may argue that the goal is nearly impossible to achieve, the company is willing to leap by investing its resources and capital.\u00a0<\/span><\/p>\n If we are to determine the exact percentage of <\/span>counterfeit products on Amazon<\/span><\/a>, we may not get accurate numbers. However, based on an analysis by ReviewMeta, a site that evaluates the quality of reviews on Amazon products, about 4.275 percent of the reviews in 2019 had the keywords “counterfeit” or “fake.” This certainly shows an increase in the percentage from 2015, which was about 1.725 percent. Another survey conducted in 2018 stated that 20% of the products on Amazon are fake.\u00a0<\/span><\/p>\n We now know that problem of fake merchandise on Amazon and other such platforms is big. However, there are ways brands can solve the counterfeit problem and save their business from drowning.\u00a0<\/span><\/p>\n For instance, a world-leading <\/span>personal care brand was able to regain its sales by $1,500,00 a month ($18,000,000 annually)<\/span><\/a> with the help of <\/span>Revuze Explorer<\/span><\/a>, an Ecommerce review insight platform.\u00a0<\/span><\/p>\nWhat Amazon Is Doing About Counterfeit Products<\/strong><\/h2>\n
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What percentage of Amazon Products are Counterfeit<\/strong><\/h2>\n
Solving The Amazon Counterfeit Products Problem<\/strong><\/h2>\n