From East to West, from North to South, there have been allegations that Amazon.com, Inc. (NASDAQ:AMZN) is selling counterfeits products, an act that is severely hurting the market. The e-commerce is well-known given that it sells virtually everything from sports items to kitchenware to toiletries. However, the allegations will soon come to an end, thanks to Amazon Brand Central to fight counterfeit. The online giant will be introducing digital tools, which it says will aid in averting rogue sellers from imitating its products.
The set of instruments is however under testing and development before it can be released into the market. Some of the notable cases involving fake products are the likes of ToysNet of Hacienda Heights and some persons who supposedly sold bogus TRX Suspension Trainers. However, Amazon has filed suits against them.
Amazon Brand Central to fight counterfeit: Is the e- commerce to blame?
Apparently, all this is happening at a very crucial time for Amazon. It is the holiday season when it expects to cash in from millions of shoppers. It is a time when it must reinforce its reliability and boost credibility with customers. There is no way the retailer will risk its seller to competitors selling fakes items. Thus Amazon Brand Central to fight counterfeit comes in handy.
However, would it be right to point fingers at Amazon about the counterfeits? In the recent past, it has been indulging more of Chinese manufacturers, which gives room for more counterfeit merchandise. Nonetheless, it is a disturbing situation.
In its suits the Seattle-based company quotes, “When customers purchase counterfeit goods, it undermines the trust that customers, sellers, and manufacturers place in Amazon, thereby tarnishing Amazon’s brand and causing irreparable reputational harm.”
But is legal action necessary?
Amazon’s marketplace hosts millions of listings; hence there could be a bunch of difficulties in facing out all the bogus products. Mark Lopreiato, the founder of Forearm Forklift, one of the companies that have crushed in recent years from counterfeiting on Amazon thinks otherwise about legal action. He thinks that Amazon is better off working with the brands in responding to complaints. However, let’s wait and see if Amazon Brand Central to fight counterfeit has anything better to offer given that the retailer has invested millions of dollars in this peril.
Amazon’s stock was trading at $785.33 an increase of $5.33 or 0.68%.
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