Amazon.com, Inc. (NASDAQ:AMZN) is taking big steps to fight counterfeit goods sold on its platform, as the influx of fake merchandise floods in from all corners of the globe.
The problem isn’t new, of course, but the issue is accelerating as more and more retailers sign up to sell their wares on Amazon’s ultra popular eCommerce platform. From Bloomberg:
Amazon has known the problem is getting worse, according to a source familiar with the matter, but for years, the company has been largely silent about the flourishing fakes. That has frustrated manufacturers and brand owners who bear the cost and responsibility of policing the site, reporting problems and hoping Amazon takes action.
The company is finally taking the issue seriously, dedicating time and resources to fight fake goods, which include items ranging non-licensed sports team merchandise to designer handbags and everything in between:
Now, the world’s biggest online retailer is getting serious. It has made fighting phonies a major goal for 2017, building teams in the U.S. and Europe to work with major brands on a registry to prevent fakes, according to a person familiar with the initiative, who was not authorized to speak about the matter and requested anonymity. Discussions with Major League Baseball and the National Football League about selling merchandise on Amazon hit a standstill earlier this year due to concerns about Amazon’s lack of control over fakes, the person said.
Experts in the space urge consumers to use caution this holiday season when shopping online. Some tips for avoiding counterfeit goods include only shopping on reputable websites, and by avoiding deals that appear too good to be true.
Amazon shares fell $12.52 (-1.60%) to $767.85 in Monday morning trading. Year-to-date, AMZN has gained 14.22%.