Amazon.com, Inc. (NASDAQ:AMZN) is one of the many online platforms that sell virtually everything from toilet paper to Mickey Mouse t-shirts to exercise equipment. However, all has not been well in the recent past. The e-commerce has been alleged to be selling counterfeit items, which have been presenting unfair competition. Many companies the likes of Digital Fusion, which purport to be selling high-quality space art on the retailer’s site, have complained because their reputation has been affected.
However, the complaints haven’t fallen on deaf ears because Amazon has vowed to help in preventing other sellers from copying and selling their products. A CNBC reported earlier this year that a majority of them were China-based, this increasing the problem. But sadly Amazon has been courting a lot of them, which elevates the threat of more counterfeit merchandise.
Brand Central will help in this menace, Amazon says
In its efforts to fight counterfeiters, Amazon says it is considering a new set of digital tools. Brand Central is currently under development and testing. Its aim is to help sellers protect their brands from fakes and knockoffs. Notably, the busiest holiday season of the year is here. Hence the online giant must out its acts together to retain and restore confidence in sellers that their sales will not be jeopardized by competitors selling illegal goods at lower prices.
Amazon, which has filed its first lawsuit against alleged counterfeit sellers, says that it invests tens of millions of dollars annually to fight illegal items. It has invested in research scientists, software engineers, program managers, and investigators to help in combating the menace of counterfeits. However, it is still a little hard to faze them out completely given that there are more than 300 million listings.
But even though there are those who feel that Amazon is not doing enough to protect them, others feel confident that Amazon will pull through. Founder and CEO of exercise equipment maker TRX, Randy Hetrick says, “I do feel very good about the efforts they are bringing forward.
Amazon is not the only victim
The problem of counterfeits is not only limited to Amazon, which is yet to make its comments on the issue. Alibaba, the Chinese e-retail juggernaut has also suffered the wrath. The biggest hit has been the flagship e-commerce marketplace Taobao. Meanwhile, Amazon’s stock was trading at $785.33 a rise of $5.33 or 0.68%.