How to Fight Counterfeit Sales Online
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Transcript of How to Fight Counterfeit Sales Online
How to Fight Counterfeit Sales Online The sale of counterfeits has been a problem for many years. The rise in
e-commerce channels: marketplaces, social commerce, live streaming,
B2B exchanges – has made counterfeits available globally and
anonymously.
Yet, there are ways to combat the sales of counterfeit goods online.
Want to protect Your Brand? Contact us for a Free Demo
Understanding online counterfeiting
The problem of online counterfeiting is growing. Counterfeit goods are
on the rise where production capacity increases, especially in China.
The supply is met with demand on a global scale.
Illicit sellers can buy fake goods from the manufacturer or go on
wholesale sites to purchase the goods. They then sell them online
directly to consumers (on e-commerce sites, social media, and other
digital channels) or on auction sites.
It is easy to set up stores or create listings on various platforms. Then,
illegitimate sellers use marketing tools and best practices for online
sales just like legitimate sellers, through paid search ads, SEO (search
engine optimization), and more. They can even bid up paid search
advertising and drive costs up for brand owners.
The problem of counterfeits
Fake products hurt your brand in many ways, some more obvious than
others. Lost revenue is just one of them. Subpar quality products (as
fakes often are) can have real, serious consequences for both
consumers and brands.
Unregulated products can not only cause damage but compromise
human health. Counterfeits are everywhere: toys, food products,
pharmaceuticals, pesticides, cosmetics, auto parts, and the list goes on.
Consider fake makeup and cosmetics.
They may look like the real deal, but when you apply them to your face,
they can cause infections and rashes. Another example
involves counterfeit automotive parts, such as fake airbags, that pose a
threat to the safety of passengers.
These consequences result in a negative impact on brands. Since many
consumers are unaware that the product they bought online is a fake
one, when it does not work as it should or does not meet their
expectations, they connect your brand with the lower quality.
The poor experience results in the brand dealing with more customer
service and warranty issues. Even when consumers are aware that they
had bought a fake, often the availability of fakes erodes brand
reputation. Inevitably, counterfeits lead to loss of customer trust and
loyalty.
Free-riding on your R&D or product development, marketing efforts,
and reputation, counterfeiters introduce not only illegal but unfair
competition. Offering similar- or identical-looking items for a fraction of
the original price eventually hurts sales and may drive prices down.
How to fight counterfeiters online
There is no single way to eliminate counterfeits completely, but there
are ways to combat them successfully.
1. Get the full picture of the counterfeiting problem
Counterfeiters operate across many online channels. Brands must
review and analyze every sales and distribution channel. Social media,
for example, increasingly enables in-app shopping and should be
examined closely to understand the scope of the counterfeiting
problem.
Monitoring software can help detect where counterfeits of your brand
are present online.
2. Monitor marketing and promotion efforts
Brands must also be on the lookout for marketing and promotion
efforts. In the online world, illicit sellers can use the same promotion
practices as legitimate sellers. Savvy counterfeiters use effective
practices: paid search advertising, links on social media, SEO and more.
They also attract buyers away from legitimate sellers to their illegal
operations through false advertising, black hat SEO tactics and spam.
3. Prepare your intellectual property
Registered IP rights, such as trademarks, copyrights, and patents, are a
prerequisite to enforcement. For example, registration is crucial for U.S.
Customs and Border Protection (CBP) seizures of counterfeits.
It is also a necessary tool for brands who wish to approach
marketplaces and make takedown requests. So, if you ask how to
protect a brand, we suggest that you start by registering the brand’s
name and logo as a trademark.
In case some of the brand’s products have unique, identifiable names,
consider registering each one of those names as a separate trademark
as well.
Trademarks are territorial. Therefore, it is crucial to register a
trademark in every jurisdiction in which your brand manufactures,
markets, or sells abroad.
Brands also need protection in countries where counterfeit goods are
often produced, particularly China. Registering a trademark as early as
possible is the best way to protect your intellectual property in China.
China has a first-to-file trademark system. In this system, intellectual
property rights go to the first party who registers the trademark, a
process that requires no proof of use. Therefore, if you do not want
somebody else to register your name or logo, you should do it yourself.
4. Be proactive
When brands do not fight back, counterfeiters have it better. A brand
that chooses not to act to stop counterfeiters gives them even more
reason to continue violating its intellectual property and profiting of it.
When you fight to remove counterfeit goods from online channels, such
as Amazon or AliExpress, you make it more challenging for
counterfeiters to violate your rights. Although they are unlikely to stop
their illicit activity, they often choose other targets.
5. Adopt an effective strategy
Look at the counterfeiting issue holistically to devise the best protection
strategy for your needs.
For effective results, prioritize your enforcement efforts according to
threats and efficiency. Online and offline. Online, start with the biggest
counterfeiters first in the most trafficked channels with best sales.
As for offline efforts: investigations, evidence collection and raids are
usually both costly and time-consuming, and should be applied when
effective.
Wiser Market – Online brand protection like
no other
The online ecosystem calls for unique solutions.
Monitoring and reporting counterfeits and other IP infringements lie
mainly with the authentic brands. It is a heavy burden, especially given
the number of online channels and the number of listings and sellers.
After a takedown, infringers can simply open a new account, listing, or
store. Continuous monitoring and action are therefore critical.
Wiser Market anti-counterfeiting agency helps clients in their fight
against online sales of counterfeits. We use innovating technology and
extensive know-how to fight counterfeiters and protect your brand,
your partners, and consumers across online marketplaces, eCommerce
platforms, and social networks.
Working globally, we have an international team and collaborations to
provide expertise and overcome language barriers, especially Chinese.
Wiser Market’s successful online brand protection strategy defends
your brand’s intellectual property, revenue, and reputation, resulting in
an over 90% success rate.
With Wiser Market, your brand will have a 360° protection suit, allowing
you to grow your business.
Want to protect Your Brand? Contact us to learn more
Get a FREE Brand Check
WiserTip: Use up-to-date information to make informed decisions with
the help of an online brand protection agency.