Amazon wrestling with counterfeit products

Amazon seeks to to crack down on counterfeits

The Carhartt hoodie that Laura Serghe bought two years ago looked phoney. And then, what was supposed to be an Eastpak backpack, arrived recently with messy stitching and a label inside that peeled off easily.

Both were bought from one place: Amazon, the world’s largest online retailer, whose rapid growth, particularly among third-party sellers, has led to a counterfeit problem.

“I’m not going to buy from Amazon anymore,” says Serghe, a freelance photographer in London who unwittingly bought what she believes were fakes. “I’ve had enough.”

Amazon has wrestled with counterfeit products on its site for years. But the problem seems to have gotten worse, with Amazon acknowledging for the first time in its annual report in February that fake goods could hurt its business and reputation. Now it’s trying to crack down: On Thursday, it announced a number of tools that it says will help reduce the amount of fakes on its site.

Counterfeits are a costly problem for the company since Amazon typically refunds shoppers who believe they were duped. Knock-offs could also cause shoppers like Serghe to lose their trust.

Looking back, Serghe says the prices of the items she bought were suspiciously low. The backpack, for example, was about 60 per cent cheaper than authentic Eastpak backpacks she has previously bought.

“Now I’m questioning everything,” she says.

READ MORE: A very merry Christmas at Best Buy with sales booming

Counterfeiters usually get their products on Amazon through its growing third-party marketplace, where sellers can list their products directly on the site. It’s an important part of Amazon’s business since it allows Amazon to offer millions more products on its site. More than half of all products sold on Amazon last year came from third-party sellers.

The new tools Amazon announced Thursday include a way for brands to remove fake items from the site themselves, rather than reporting them to Amazon and then waiting for the company to do something. It is also using machine learning to automatically scan listings to remove suspected counterfeits and has created unique serial codes that can be placed on products during the manufacturing process, which can then be monitored by Amazon on its site.

Amazon says one of the brands using the tools is handbag and luggage seller Vera Bradley, which says it wants to make sure its customers get authentic Vera Bradley items from Amazon.

For now, the tools are invite-only, but the company says it will work to add more brands quickly.

“This would force other competitors of Amazon to also step up their game,” said Sridhar Tayur, a professor of operations management at Carnegie Mellon University’s Tepper School of Business.

READ MORE: Unifor’s actions against GM were unlawful, board rules

Counterfeits are a problem on other sites, too. Last year, the U.S. Government Accountability Office bought 47 items from Amazon, eBay, Walmart.com and other online stores that have a third-party marketplace. Of those items, 20 were counterfeit, including makeup, phone chargers and travel mugs.

Joseph Pisani, The Associated Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Hundreds fill Chilliwack streets for Black Lives Matter march

‘Canada has a problem too,’ reads at least one protester’s sign

IHIT names homicide victim found in the Fraser Canyon this week

Police asking for tips into the suspicious death of 29-year-old Alicia Berg

$25 million Fraser Valley highway project 18 months behind schedule

Ministry says information security protocols have ‘evolved’ since construction on project wrapped up

Chilliwack RCMP heard gunfire en route to suspicous activity

Chilliwack man, 42, sent to hospital after shooting, RCMP have confirmed

Racism wasn’t dealt with properly by school, says Chilliwack graduate

Woman tells story of being verbally assaulted at school for being black

Trudeau offers $14B to provinces for anti-COVID-19 efforts through rest of year

Making a difference in municipalities is a pricey proposition

‘Like finding a needle in a haystack’: Ancient arrowhead discovered near Williams Lake

The artifact is believed to be from the Nesikip period between 7,500 BP to 6,000 BP

Indigenous families say their loved ones’ deaths in custody are part of pattern

Nora Martin joins other Indigenous families in calling for a significant shift in policing

Friends, family mourn Salt Spring Island woman killed in suspected murder-suicide

A GoFundMe campaign has been launched for Jennifer Quesnel’s three sons

Run for Water: Abbotsford man raises $100,000 running 100-mile marathon

Kevin Barata ran up and down Ledgeview Trails 32 times, exceeding elevation of Mt. Everest

PHOTOS: Anti-racism protesters gather in communities across B.C.

More protests are expected through the weekend

Indigenous chief alleges RCMP beat him during arrest that began over expired licence plate

Athabasca Chipewyan Chief Allan Adam calling for independent investigation

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

Most Read