Counterfeit and fake products already account for 3.3% of global trade, according to a report by the Organisation for Economic Co-operation and Development (OECD). While brand protection is a key element of any successful business strategy, especially with the accelerated growth of e-commerce, many companies are still not doing enough to combat this harmful online practice.
There are several myths surrounding e-commerce counterfeiting, and it's time to clear up some of these misconceptions. We present six of the most common beliefs and expose the truth behind each one.
1. Only products from well-known brands or certain categories are at risk
It is a fact that certain product categories are more susceptible to counterfeiting than others. Clothing and fashion accessories, footwear, watches and jewellery, handbags and wallets, electronics and pharmaceuticals all feature in the top 10. However, cybercriminals are finding ways to replicate other products. Cybercriminals will copy any item that generates business – examples include car parts, medicines, sex toys, even condoms – so no industry is safe.
It’s clear that popular products from well-known global luxury ecuador whatsapp data brands are the most obvious target for cybercriminals, but that doesn’t mean that even smaller startups operating in local markets aren’t at risk of the effects of online counterfeiting and brand abuse. It’s time for brands to gain visibility into the threats that exist online, rather than assuming that their products and brands are safe from these infringements.
2. It's easy to spot fakes online
When we think of a counterfeit item being advertised or sold online, we may picture a website, product listing, or social media post containing low-quality, unofficial images, content riddled with spelling mistakes, and easy-to-spot design flaws. This couldn’t be further from the truth – these days, rogue sites, fake social profiles, and products offered on marketplaces can be difficult to spot, even for the most experienced.
Through the abuse of intellectual property, official images and product descriptions are used alongside logos to trick unsuspecting consumers. Today, scams are highly sophisticated and make it almost impossible to identify counterfeit products online.
In our recent e-commerce research study, we found that one in four shoppers has unintentionally purchased a counterfeit item when shopping online, and despite this alarming figure, two in five are confident they could spot a counterfeit advertised on a digital channel.
There are some telltale signs, such as an extra word or letter in the URL, the option to buy large quantities of a product, or the omission of brand or product names on marketplaces. Consumers should be alert to these indicators, and brands should ensure that they protect their customers, their revenue, and their online reputation.
3. Prices for counterfeits are always low and delivery times are long.
Many counterfeit items sold online are available for just a fraction of the price of the original item; in fact, this method of reduced pricing is used to encourage sales. However, not all counterfeits are sold for less.
The most convincing rogue sites offer counterfeit products at the same price as the original, a tactic used to convince consumers that what they are looking at is the real thing. If price is used as the only indicator to determine whether a product is genuine or counterfeit, we have a big problem.
Product delivery times have also improved over the years, with consumers now enjoying next-day, or even same-day, delivery. There is a belief that counterfeiters cannot match this speed of service, but this is not true. The same fast delivery options also apply to counterfeit products and should not be used as the sole measure to determine whether a product is legitimate or not.