E-commerce sales of counterfeit goods are becoming a growing problem in the U.S. economy. In the U.S. alone, counterfeit goods and piracy have cost U.S. merchants $41 billion dollars. Every year, the U.S. Customs and Border Protection seizes massive numbers of counterfeit goods from all over the world. Counterfeiters make profits by creating fake versions of popular products. When customers buy counterfeited goods, legal companies lose profits, causing a negative effect on U.S. jobs. More people than ever use the internet to buy goods, making it challenging for the government to detect and confiscate counterfeit goods. Business owners should take e-commerce anti-counterfeiting steps to protect their profits and their brands.
E-Commerce Counterfeiting has Become a Global Epidemic
Business owners should think globally when it comes to taking anti-counterfeiting measures. A community medical platform recently reported that one out of every five products sold online is counterfeit or fake. Businesses should invest in the necessary tools and technology to obtain a complete picture of the extent of counterfeited products.
E-commerce business owners should strive to shut down distribution channels for counterfeit goods. Nonetheless, counterfeiters always seek new ways to sell products. Business owners should monitor all of the promotional channels legitimate sellers use to sell products online, such as:
- Links within social media posts
- Black hat SEO tactics
- Spam
- Email advertisement
- Social media advertisement
- Cybersquatting
Take Proactive Action
While governments and regulators are attempting to address counterfeiting, regulations lag behind the ever-expanding counterfeit operations. Businesses benefit from taking matters into their own hands when it comes to counterfeit goods. When e-commerce brands aggressively fight back against counterfeiters, counterfeiters often become more passive sellers of the brand or product.
Report Counterfeiting to Online E-Commerce Sales Avenues
Brands should identify their biggest counterfeit offenders. Find the most highly-trafficked venues and the goods that are most often counterfeited and address these streams of commerce first. Brands that are publicly known to vigorously and aggressively remove counterfeit goods from online venues often see a decrease in the number of counterfeit goods using their brands. The tools available from large e-commerce retailers are free methods to identify and report active counterfeiters and intellectual property infringers.
Most large e-commerce retailers such as Amazon and Ebay provide mechanisms through which brands can report counterfeit sales. For example, when third-party sellers sell counterfeit products on Amazon, Amazon will take the following actions:
- Loss of selling privileges for the seller of the counterfeit goods
- Withholding of funds from counterfeit sales
- Destruction of counterfeit inventory in Amazon’s fulfillment centers
- Other legal consequences.
Owners of the rights to brands and products can notify Amazon about counterfeit goods. Amazon investigates promptly and takes actions to protect customers. Amazon also offers an Amazon Brand Registry that provides access to image and text search tools. While counterfeiters can still get through Amazon’s anti-counterfeiting measures, reporting counterfeit activity still acts as a deterrent and can slow them down.
Use State-of-the-Art Technology and Free Resources
Spending some money on brand protection can pay off in the long run. Businesses can purchase automated brand protection that can detect counterfeit or infringing products. Accuracy and speed are important while fighting online counterfeiters. Using state-of-the-art technology can save you and your team a tremendous amount of valuable time.
Start-up companies that do not have spare assets to spend on automated brand protection can find many free resources online. Free webinars, online courses, and articles can help business owners educate themselves about the current IP enforcement landscape. Taking the time to familiarize yourself with common counterfeiting practices can help you in your continuous fight against counterfeit products.
Educate Your Customers About Counterfeit Goods
Brand loyalty is one of the most important parts of successful e-commerce sales. Through the use of social media marketing, businesses can use customer loyalty for anti-counterfeit measures. Brands can benefit from educating their customers about all of the following:
- The risks of purchasing the brand’s good from an unauthorized seller
- How to identify a counterfeit item
- Warning signs that a seller is not authorized or that a product is counterfeit
E-commerce brands should also consider adding a page or form on their websites that allow customers to report counterfeit activity. Doing so encourages loyal customers to take an active part in combating counterfeiting. Consumer awareness is a growing trend. Today’s tech-savvy consumers want to know where the ingredients and supplies used in products originate.
Consumers are more conscious than ever about environmental hazards. Consumers who understand the potential toxins and hazardous materials in counterfeited goods are more likely to avoid purchasing counterfeit products. Toys, food, makeup, and personal use products are at high risk of being potentially dangerous. For example, one out of every three parents who purchase toys online thinks that major eCommerce marketplaces do not sell counterfeit toys. The lack of knowledge about counterfeit products online can be dangerous, especially when over 70% of U.S. parents planned to do at least half of their holiday toy shopping online.
Choose an Effective Brand Protection Solution Provider
Start-up companies are often rightly focused on expanding their product offers and profit margins. While many business owners understand that anti-counterfeit measures are important, they do not have the time or knowledge to effectively combat counterfeiters.AU LLC is a Chicago based law firm that assists businesses throughout the United States in anti-counterfeit measures. We help our clients identify counterfeiters and brand infringers. We also help them recover damages, secure injunctions and enforce their intellectual property rights.
Our experienced attorneys know how to secure temporary restraining orders against intellectual property infringers and counterfeiters. We know how to defend our clients’ rights, resulting in frozen Paypal accounts and online seller accounts. Our lawyers vigorously pursue counterfeiters who deny allegations of counterfeiting. We seek permanent injunctions and damages awards on behalf of our clients. If you are a business owner who needs assertive, experienced attorneys to join your anti-counterfeit measures, contact our law firm today to schedule an initial consultation.