Will counterfeit sales rise as Amazon pursues global growth?
According to a recent Reuters report, more than a quarter of all Amazon Inc’s revenue for sellers in 2017 came from international transactions. This was up by 50% from the prior year and believed to amount to between $50 and $75 billion for merchants selling in another country.
To remain competitive against other online marketplaces, Amazon is aiming to make its marketplaces more desirable to global shoppers. For example, eBay previously said cross-border sales were one of its key strengths and now has the Japanese market in its sights, Meanwhile, according to Alibaba, their unit Tmall Global now features brands’ products in 63 countries and regions.
To achieve this international growth, Amazon is encouraging merchants on their website to sell goods to overseas buyers. They are offering space to rent in over 150 warehouses in 13 global marketplaces so merchants can store inventory nearer to customers. The service is of course not for free, but it isn’t only a boost for Amazon. Marketplace sellers can increase their customer base significantly and offer relatively quick delivery times while cutting out the difficulty and hassle associated with exporting goods.
While this does bring benefits, merchants should progress with caution. Amazon, along with many other online marketplaces, suffer from a high number of counterfeit products for sale on their platform. Amazon does not tolerate counterfeit goods and is investing heavily to prevent it, but until they can guarantee brand protection, many luxury brands are not allowing their products to be sold on the platform (read more on this story here).
Additionally, eBay, Alibaba, Tmall Global and other online marketplaces have put procedures in place to tackle the huge problem of counterfeit goods that can be found on their platforms. Yellow Brand Protection have put a list together of how to report brand infringements on some of the major online marketplaces. This can be found in the resources section.
Yellow Brand Protection is highly experienced in identifying and taking down counterfeit products that are being sold on online marketplaces. With the broadest online search in the industry, we cover over 1,000 marketplaces and all other key online sales channels.