Amazon's Chinese Counterfeit Problem Is Getting Worse
cnbc.com
cnbc.com
There are a couple of problems with his story.
First, Amazon denied it was due to comingling:
"I’m just calling to inform you that there were no other sellers of that item that were in the co-mingling program"
Second, he apparently didn't show up to the lawsuit and had a judgement by default. Never a good sign.
Third, he was moving hundreds of thousands of items, but couldn't afford a lawyer?
Fourth, he cites as evidence that his items were comingled the fact that his returns came from a different warehouse than he sent them to. As someone who regularly sends items to FBA warehouses, this is bullshit. Amazon sends your own inventory between their warehouses, and you can track this in reports. Often I send to warehouse A, and it immediately goes to my reserved inventory, and then it goes to another warehouse a few days later. Anyone who doesn't know this didn't invest enough time to learn about Amazon policies, and you should doubt their story.
Surely Amazon must have some clue the damage this is doing to their brand?
Seems time has come to buy from retailers that don't have highly suspect marketplaces intermingled on their sites.
A particularly humorous situation has evolved from this with matchbox toy cars. With matchbox cars, any 1 car box is entirely indistinguishable electronically from another 1 car box, as all 1 car boxes share the same UPC (as well as 2 car boxes and so on). Collectors now refer to buying from amazon as 6 bullet roulette, because it is now virtually impossible to actually get what you think you bought.
That seems to me to be missing the point rather badly (by Amazon, not by you). Counterfeits are designed to be indistinguishable, at least to casual inspection. Forging a UPC code is trivial.
Think ipod earbuds for instance, imagining they all actually Official ones, you wouldn't care which seller the one you ordered came from, as long as the product reference is the good one.
Let's say there was a SellerB with a real iPad for sale, located closer to the buyer. Could Amazon swap ownership in that case? Would SellerB be liable for fraud and damaged reputation if his real iPad was switched with a fake?
On the face of it, I cannot see how it would present a problem, except for the obvious one of scale. It would be interesting to learn the precise details of how Amazon implements its tracking policy.
It's gotten so bad with certain groups of items I don't even try. Sunglasses, handbags, all the usual stuff you'd expect.
My anecdote: I like gold colored Ray-Ban aviators with a brown or dark polarized lens. The two stores near me didn't have them in stock, I couldn't find my old pair and I was leaving for a week long motorcycle ride in two days. I ordered them up and immediately knew they were fake. They were too light, the nose pads weren't right, all the usual tells. I returned them 3 different times until I just cancelled.
https://www.amazon.com/gp/offer-listing/B000EYP57K/ref=dp_ol...
Buy from Amazon - the second choice. Pretty sure that is the default purchase option on the main page as well.
If you order from Seller A on "Fulfilled by Amazon", then Amazon will ship you from the nearest warehouse that has the same product, even if it's technically stock of Seller B.
And Seller B might have handed a crate of counterfeits to Amazon. Angering both the customer and Seller A who has no way to actually enforce the quality of what they sell on Amazon.
Pros to comingling:
1. Makes customers happier to get their item sooner
2. You don't need to label your items, which either saves you time or saves you the 20 cents per item fee Amazon charges
3. Your items get processed quicker. If your items are in between warehouses, they can still be "shipped" to the customer.
Cons:
1. Counterfeit possibility. This varies by item. Amazon claims to track which seller inventory was sold from.
2. Bad returns, may hurt your account or require time to deal with.
Basically sometimes it makes sense and sometimes it doesn't. I use a prep center which labels for me, and when I send in items myself I have Amazon label them.
Just because you buy someing from Seller A, even if Seller A is Amazon LLC, you may not be getting stock from Seller A
If I am A retailer selling SuperWidget 55, and I ship Amazon 100 Genuine SuperWidget's to store in their warehouse for amazon to ship to my customers (aka Amazon Fulfillment Service) . Then another competitor ship 100 Fake SuperWidgets to amazons warehouse. All Amazon records is they have 200 SuperWidgets.
When a Customer orders a SuperWidget, they will get what ever SuperWidget is closest to their location, and a random one from that location, it may not be my SuperWidget but one of the 100 fake ones, even though the customer selected to order from me.
So then the next question is why would a retailer use Amazon Fulfillment, well if you want to get any Prime buyers you must, as if you do not use Amazon Fulfillment your orders are not "Prime Eligible" which eliminates a huge number of consumers.
You implied that sellers are required to use it.
Edit: it's a different user that replied to me, my mistake.
Also, Amazon tracks which order came from whose inventory, so if it's reported as fake they can punish the right seller. Any system of that size is going to have some slip through, but Amazon does a lot to vet sellers for specific products, categories, and so on. Just recently certain iPads were restricted, and I couldn't get approved with retail receipts, they wanted invoices from authorized distributors, for example.
As a buyer you can't do much about comingling, but that shouldn't be relevant except for products with an abnormally high counterfeit rate. And you will get your money back with very little hassle when buying FBA (they refund you immediately and then require you to return it), and it helps hurt the bad seller. The fact is the vast majority of purchases on Amazon are legitimate. I agree Amazon needs to do something about their image, but it doesn't seem to be hurting their sales. And who else are you going to go to? eBay is even worse, and retailers are more expensive most if the time.
https://www.amazon.com/gp/help/customer/display.html?nodeId=...
>Although products sent to Amazon as commingled inventory may be virtually pooled with those of other sellers, we track which seller shipped the units to our fulfillment centers from the time they enter our warehouse until they are shipped to the customer. This allows us to know who sourced the item that the customer received.
The other possibility is that they weren't fake, just the result of Ray-Ban moving production to China. You could return them 300 times and you'd still get the same cost-reduced crap.
Additionally I wasn't ordering ones that were too cheap to be real, this was full retail price- if they were significantly cheaper I would've expected fakes.
[1]: http://www.ray-ban.com/usa/sunglasses/RB8307%20MALE%20011-av...
If getting a genuine brand name item (e.g. an Apple charger) is important, I will buy it at a local retailer. And even then I'm not always sure, but I assume that places like Target have enough control in their procurement to not end up selling fakes.
There are plenty of low quality fakes, but as Jack Ma said, some are better than the licenced versions.
Though Whalley has a patent on it, the article claims, prior art for the basic idea can be seen on any truck that has a tarp tied down over a bunch of cargo.
Since the products are copies -- how would you know you don't get ripped off next week, when Amazon sell some other copies? The packaging etc look the same, by definition...
It is just not realistic to keep up with the exact details and doing a complete quality check whenever you buy anything, from toilet paper to cars. Every time.
I predict that this is just a short phase. If the quality of products at Amazon will be a total dice throw, the consumer reaction will be to buy directly from the producers' web sites. That is not in Amazon's interests, so they will soon be more transparent. Or become irrelevant.
The vast majority of sales go through without any problem.
I think Amazon maybe should restrict access to the comingling program to new sellers, which would help somewhat. They already won't let you get the buy box as a Merchant Fulfilled seller when you're just starting or when you're below metrics.
https://www.bunniestudios.com/blog/?p=284
https://www.bunniestudios.com/blog/?p=4297
There is no "stagnation in innovation", in fact I'd say things happen much faster because there's far more competition.
> "savoir faire"
I don't understand this phrase. All the definitions i found seem to be about personal behavior. Is there an alternate definition? What are you trying to convey?OP seemed to be referring to technical competency for an entire industry.
the proximity to people in charge of manufacturing the products also increases innovation- they see problems firsthand and can contribute to solving them.
(I think this fight is going to look a lot like the MPAA/RIAA vs. everyone-who-listens-to-music wars of the 2000s, except this time for real money.)
It sounds like the real problem here, if there is one, is that Amazon's rating system isn't good enough at preventing fake ratings.
I think the book gave the example of a high-end kitchen knife brand, maybe Wüsthof, that would not allow Amazon to sell their knives. Before you know it, cheap knockoffs appeared claiming to be Wüsthof knives. When they let Amazon sell the real deal, suddenly the knockoffs disappeared from the store.
I have a feeling the same thing is happening with the high-end perfumeries, like Creed. Everything sold on Amazon is a knockoff because the company doesn't sell there. I bet if they did, the fake stuff would magically disappear...
https://www.amazon.com/Apple-MagSafe-Adapter-MacBook-Display...
Now read this review (verified purchase):
https://www.amazon.com/gp/customer-reviews/RNA9AYHGA5JG0/ref...
Wizards of the Coast, Magic's parent company, maintains a reversed list of historic cards. Listed cards can never be reprinted to protect their prices on the secondary market for collectors. Many players complain this is a bad for the game. As the counterfeits are getting better, more players buy them, pressuring Wizard to act. Maybe Wizards will abolish the reserved list.
Reserved list: http://magic.wizards.com/en/articles/archive/official-reprin...
More links: http://www.starcitygames.com/article/27693_Counterfeit-Cards...
http://www.channelfireball.com/articles/how-to-dismantle-the...
It would then come down to how much the counterfeit is worth to the player. So long as these aren't being passed off as legitimate cards, I don't see an issue.
I had a friend with a color printer that tried to make counterfeit cards to use as proxies (not to try and sell, the printer he had back then was not very good), he got caught at a game night at a shop (unofficial tournament) and was actually banned from there.
There was a big deal about it recently with relation to counterfeiting. http://magic.wizards.com/en/articles/archive/news/proxies-po...
I think we'll start to see more and more games like this emerge over the next few years/decades, as the possibilities of traditional sports and games (and the humans who play them) are exhausted.
Magic the Gathering is good.
Because.
A lot of Wizards' approach to tournaments and playable cards is designed so that the secondary market's influence on the game is minimized.[0]
They saw beanie babies and comics implode in value after waves of speculation, so they set up a schedule where they churn out new cards and retire old ones on a predictable schedule. All this means the company has to think as little about the secondary market as possible.
You're right that counterfeits are a disruptor, but I think that's more a threat for current cards, not because people will print a bunch of black lotuses and moxes.
[0] http://www.npr.org/sections/money/2015/04/16/400140583/how-s...
meaning I was OK with generic Chinese merchandise, but it is more convenient for them to supply counterfeits than to produce something actually white-labeled.
Why don't they do this by default?
2) It marginalizes legitimate reviewers who bought the product somewhere other than Amazon
Regardless, I agree that it's a reasonable and sensible default.
The reason they would keep deleting and re-listing the item is because I would leave bad (but factually correct) reviews when I kept trying to find the phone dock and seeing their new listing in Amazon's search results. Their re-listing action caused my reviews to disappear because it was a 'new' product listing with their same fake photo every time. I flagged this repeatedly to Amazon as fraud via chat, email, and telephone and they never took any action. This went on for months, and Amazon never addressed it.
So my point is that by allowing anyone to post a review, you give consumers one more tool to warn each other about fraud and unethical sellers. Yes there are a lot of fake reviews, but there are also legit buyers out there too and we are willing to pester fake sellers for months and cost them a fair amount of losses (postage, abandoned fakes because they don't want them back).
Sellers know they can delete & re-list fakes all day long to disassociate negative feedback for an item , and they know Amazon will never ban them.
That's not "punk" -- the seller doesn't want the garbage anymore than you do. Most vendors of inexpensive products don't want you to mail back returns. It's not worth it.
As Brexit has shown us, there are plenty of downsides to Globalization. Amazon needs to get better at KYC, but Jeff's growth at any cost mantra just won't embrace that and his lieutenants will find it's hard to argue with results. Until this sort of stuff makes a dent in Amazon's top line, I believe they won't really crack down on this.
A totally different and important problem is counterfeit drugs. There are ways to battle counterfeit drugs.
Today:
Brand 1 makes product and sells on Amazon. Files IP to try and prevent others from copying their idea.
Brand 2 (Chinese company) makes similar product and sells through amazon - results in headlines like - Amazon has a Chinese problem.
Brand 3 (Amazon Basics) - makes similar products and has Chinese supplier add logo to their generic product. Even though brand 1 has the same problem (arguably worse), because Amazon does it instead of a Chinese company it is seen as less problematic.
They had a design patent (basically meaningless) and amazon just modded and started owning them.
> Her patented product called BedBand consists of a set of shock cords, clamps and locks designed to keep fitted bed sheets in place.
All these parts made in USA?
I am wondering if I should try to buy a last pair directly from the manufacturer. I am quite happy with my new Sennheiser, but they don't feel right...
Anyone in the US with recent experience?
When I came back, the transfer was complete, I unplugged the device, and I burned my fingers!
So now I have a broken USB-port in my Macbook, because I trusted Amazon to not sell me a fake product. I wrote a review, and rated it poorly, but they are still selling it[0], and most reviews are positive. They even write "by Sandisk", and "Dispatched from and sold by Amazon".