According to foreign media reports, Incopro conducted a survey covering over 1,000 consumers, which revealed that approximately 27% of consumers stated that even after reporting counterfeit sellers, they had never received refunds from online marketplaces. The survey found that consumers also desire sellers to take more measures to prevent the sale of counterfeit goods.
More than half of the consumers unintentionally purchased counterfeit goods, leading to a loss of trust in a brand. If they were sold counterfeit goods, 64% of consumers would lose trust in the platform.
Piers Barclay, Chief Strategy Officer at Incopro, stated, "With holiday discounted goods being favored by consumers, the risk of counterfeit activity is amplified."
The increasing prevalence of e-commerce, according to US Customs, has led to a larger market for counterfeit products designed to deceive consumers, often priced lower than genuine items.
Reported by Retail Dive, this issue troubles many e-commerce platforms with third-party sellers, such as Amazon, which uses unit codes to verify authenticity and Project Zero technology to prevent counterfeit products from entering its website.
However, sources informed The Washington Post that Amazon's focus on extensive selection and low prices has allowed counterfeit products to persist. Recently, a knockoff Louis Vuitton passport holder bearing the "Amazon's Choice" label was sold for $10.97.
According to WWD, the US Senate Finance Committee released a bipartisan report last month emphasizing the challenges various brands face in internet intellectual property protection. This includes e-commerce platforms not supervising counterfeit products or clearing suspicious counterfeit items.
Currently, an import ban on patented designs requires approval through testing by the US International Trade Commission, a process that can be both costly and time-consuming.
Is China the primary source of counterfeit goods?
According to data from the Organisation for Economic Co-operation and Development (OECD), China is the largest source of counterfeit products. Bloomberg News reported that American brands are among the most counterfeited, comprising 3.3% of global trade in counterfeit goods.
Earlier this year, jewelry designer David Yurman won a lawsuit against counterfeit e-commerce, receiving approximately $1.6 million in compensation. Brands like Ralph Lauren and LVMH have developed digital tools to track products to prevent the sale of counterfeits.
Incopro's survey found that consumers have the highest trust in the authenticity of products on Sears.com, while eBay and Wish.com have the lowest levels of trust.
Interestingly, 32% of consumers had no issue purchasing counterfeit clothing, jewelry, or leather goods online, leading to a significant drop in retail prices. According to WWD, 22% intentionally did so.
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