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.

Just Posted

Seasonal road bans for the County of Stettler declared for Monday

Road bans go into effect Monday, March 25 at 1 p.m.

Supporters rally for Jason Kenney as UCP leader stops in Red Deer

Kenney promises equalization reform, stopping ‘Trudeau-Notley’ payroll hike, trade, economic mobility

Stettler’s Christ King Church a spectacular structure

Great submission to history book committee on Stettler’s Catholic church

Don’t leave ice huts on lake: County of Stettler

Anglers reminded to remove ice huts from lakes prior to April 1

What are you fertilizer requirements for spring?

Soil tests are still best way to determine levels at beginning of season

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

Terror at sea: Helicopter rescues frightened cruise passengers in Norway

The Viking Sky cruise ship was carrying 1,300 passengers and crew when it experienced engine trouble

DOJ: Trump campaign did not co-ordinate with Russia in 2016

Attorney General William Barr said special counsel “does not exonerate” Trump of obstructing justice

Judges on Twitter? Ethical guidance for those on the bench under review

Canadian judges involvement in community life are among issues under review

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Sentencing judge in Broncos crash calls for carnage on highways to end

Judge Inez Cardinal sentenced Jaskirat Singh Sidhu to eight years

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Most Read