Amazon.com, Inc. (NASDAQ:AMZN), one of the largest online shopping platforms is on the receiving end even as it gets ready for its next week’s Prime Day promotion of more than 100,000 deals. Notably, not many of its subscribers are keen on the development given the blast of concerns of illicit activities by the Chinese.
Many of third party sellers are frustrated by Chinese counterfeit products. A report by CNBC’s Ari Levy details how Chinese counterfeit sellers are playing tactic games to enhance vendor rankings. Over 300 dealers have outlined complaints relate to fake reviews and undercut prices as some of the illegal activities that the counterfeit sellers are using to their advantage.
Amazon has reached out to the frustrated retailers by expressing its concern over the recent situation which has been termed as chaotic. The company may have failed in one of its principal policies that involve familiarization an induction of the Chinese retailers into the company’s logistics operation. The failure may have created some loopholes that fraudulent manufacturers seem to be capitalizing on.
The fraudsters are way ahead to an extent of changing their names and identities when they sense that they are being monitored which leaves the third party sellers very vulnerable to unauthentic activities. Manufacturers have also lost shares into these activities.
The Way forward for Amazon
The retail giant must derive some solution, an emphasis that has been made by Amazon’s top sellers. Sebastian Gunningham, Amazon’s SVP of Seller services has been asked to come up with a strategy that will curtail the number of Chinese counterfeit sellers.
The company’s reputation is on the verge of going south if the situation is not dealt with immediately. Enhanced policies and regulations must be out into place. The company has vowed to keep its customers protected and on that note, it will give its customers a full refund of any counterfeit products. After all, its online market is growing rapidly which translates to a better future for the company.
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