Amazon Counterfeit Products Linked to Chinese Manufacturers
According to a recent report from CNBC, Amazon’s counterfeit problem is getting worse by the day. For Amazon sellers with their own private label products on the platform, it is not uncommon to come across an imitation product. These cheap knockoff products may satisfy some customers, but for sellers who have worked long and hard to develop their private label brands, the Amazon counterfeit issue is disheartening at best – and disastrous at worst.
The Amazon counterfeit problem is rooted in China, where local manufacturers have paired up with Amazon.com to produce cheaper alternatives that are nearly identical to many private label products. Amazon has integrated these manufacturers directly into their business operations, allowing them to “cut out the middle man” and list alternative versions of name brand products for a much lower cost. The counterfeit listings ultimately outrank the authentic products on Amazon, dropping legitimate product listings to the bottom of the list and making a major dent in the bank accounts of Amazon sellers.
The counterfeit listings on Amazon have naturally induced outrage among private label sellers – it is not a comforting fact to realize that any day now, your sales may drop drastically because of cheap knockoffs of your product. Almost fifty percent of Amazon unit sales are generated via its 3rd party marketplace. The major issue at hand is that this increase was seen only when Amazon began partnering with China.
Chinese Sellers Reap the Benefits of Amazon Counterfeit Items
It’s an unfortunate fact that Chinese counterfeiters are enjoying the benefits of their relationship with Bezos – according to statistics from CNBC, Amazon sales for Chinese sellers doubled last year. Amazon’s overall revenue jumped by 20% last year as well. What’s more, Amazon even set up an agreement with the Federal Maritime Commission to offer sellers in China cheap international shipping options so they can conveniently ship their items straight to FBA centers in the US.
There is no real solution for Amazon sellers who are suffering due to the counterfeit problem, but the general public is certainly beginning to realize the severity of the issue. In order for Amazon.com to maintain their excellent reputation in customer service, they will need to alter their operations to ensure their sellers are taken care of as well.