The growing menace of fake products in the e-commerce industry

The e-commerce industry in India is facing the menace of counterfeiting. According to Local Circles, a community media platform, one in five products sold on e-commerce websites in India is fake. Another survey by market research firm Velocity MR has revealed that every one out of three online shoppers has received a fake product. However, that’s just a minor revelation and the problem is much bigger. In the present times when your favourite products are just a click away the incidents of counterfeiting have increased rapidly.

Counterfeits pose a risk to the manufacturer, e-commerce players and end-consumers. According to a reputed media house, fake products are risky for the investors and government exchequer. Fake goods don’t just impact genuine brands and investors but also the customers. A fake cosmetic can ruin the skin, a counterfeit toy can be dangerous for a child or a fancy looking apparel may cause skin allergy the list seems endless.

In order to the fight the scourge of fake products in the e-commerce industry, the Indian government has issued a draft national e-commerce policy which aims at regulating cross border data flow, prevents piracy and counterfeiting and requires all online sellers to register their business locally.

E-Commerce giants like Amazon and Alibaba have also implemented different regulatory measures for curbing the sale of counterfeits on their platforms. In a blog post, Amazon has stated, “Brands provide us with their logos, trademarks, and other key data and we can scan over 5 billion product listing updates every day, looking for suspected counterfeits.”

Product tracking, digital authentication, serialization and holography can also play an important role in preventing counterfeits and any form of tampering. A recent example is the rampant use of QR enabled holographic labels or holograms by which help in authenticating the genuineness of the product instantly.

Many e-commerce companies are also using anti-tamper packaging labels and holograms to prevent tampering and duplication. Anti-counterfeiting mechanisms have become necessary today for e-commerce companies and manufacturers in order to clamp down on counterfeiting and prevent any possible loss. In case you are willing to secure your products from counterfeiting, tampering and diversion call us on +91–785-785-7000 or drop a mail at connect@holostik.com.