Turn – e-commerce collapses without counterfeiting protections due to consumer trust

It’s undeniable that the rapid growth of e-commerce has brought convenience and accessibility to consumers worldwide. But there’s a flip side to all this progress, primarily related to the proliferation of counterfeit goods. In fact, a report released by the OECD in 2021 titled Misuse of E‑Commerce for Trade in Counterfeits2 shows that the trend towards online shopping is expected to continue, especially in light of the COVID-19 pandemic, with an ever-increasing number of people buying products using mobile devices.

With this in mind, without the implementation of new, innovative and effective measures to create a secure and trustworthy online environment, the unchecked growth of e-commerce can lead to serious consequences.

As we have witnessed at Red Points when monitoring hundreds of marketplaces daily, counterfeit products infiltrating the e-commerce landscape pose a significant danger to consumers. What’s more, due to the nature of online counterfeiting, virtually no market is safe and almost no brand is safe. Many people think luxury goods are counterfeiters’ main targets, when in fact, these products are estimated to account for no more than five to ten percent of all counterfeit goods. According to the OECD, fakes are found in every category, from handbags and perfume to machine parts and chemicals. People are often surprised when they find out that at Red Points we protect a very diverse set

of brands from baby products and cosmetics, to software and wind turbine manufacturers.

In the context of back-to-school shopping, students and parents are particularly vulnerable to counterfeit electronics, backpacks, clothing, and footwear, as these items are essential for a successful academic year. When consumers cannot trust the authenticity of the products they purchase online, they are exposed to various risks, including substandard quality, potential health hazards, and financial losses.

Moreover, the unbridled expansion of e-commerce without equally evolving and robust anti-counterfeiting measures threatens the integrity of online marketplaces. Legitimate businesses suffer when counterfeiters flood these platforms with fake products, eroding consumer trust in e-commerce as a whole. This erosion of trust affects not only businesses operating online but also the broader e-commerce ecosystem.