Dark side of Ecommerce: The rise of counterfeiting

1. Dark side of Ecommerce -The rise of counterfeiting

2. Introduction • The Covid-19 pandemic has resulted in a shift of consumer buying pattern from traditional retail channels to more of digital dependency and increased use of ecommerce platforms. • For many merchants, having the ability to trade online has been the difference between sinking and swimming, particularly for those who have seen widespread store closures. • This provides an opportunity for Ecommerce platforms to offer innovative, value-based and integrated products to meet customer needs.

3. Ecommerce Platforms • Amazon.com has maintained a buyer-friendly reputation, and for that reason has become the biggest online store globally with numerous fulfillment centers and a widespread supply chain network. • Even after having a number of checks and balances for monitoring operations, the top two complaints regarding Ecommerce platforms are usually about Non-delivery and Counterfeit goods sold via the online platform. • In addition, several brands are also complaining against e-commerce companies for allegedly selling fake products under original brand names. • For instance, in 2019, Amway, Modicare, and Oriflame complained about the unauthorized sale of their products on some of the leading e-commerce platforms such as Amazon, Flipkart, Healthkart and Snapdeal.

4. FICCI’s ‘Committee • According to trade body FICCI’s ‘Committee Against Smuggling and Counterfeiting Activities Destroying the Economy’ 2019 report, counterfeiting costs the Indian economy a loss of INR 1.17 lakh crore in 2017-18. • The report titled ‘Invisible Enemy: Impact of Smuggling on Indian Economy and Employment’ surveyed five industries – textiles, readymade garments, consumer durables (electronics), capital goods (machinery and parts) and tobacco products – and found that capital goods suffered the highest loss at INR 52,511 crore followed by consumer durables at INR 21,452 crore during the year.

5. Smart Packaging Solutions • The best way to currently tackle counterfeiting problems is to implement smart packaging solutions. • Smart or Intelligent Packaging by each brand will help with anti-counterfeit and anti-infiltration problems. • Smart Packaging can also help consumers confirm the authenticity of the product received since they can now simply scan the product label and verify. • They can also measure the quality of the product present inside and report its condition. • Also, smart packaging uses RFID chips/serialized ID’s to track packages throughout the distribution process, which further limits the possibility of counterfeiting. This trend is expected to positively impact the growth of the global anti-counterfeit packaging market.

6. Sepio Products • Sepio Products is an IoT platform focused on transforming supply chain security and efficiency by creating unique digital identities for products and shipments and tracking them through their lifecycle. • Sepio is industry leader in security products and solutions • Sepio has more than 2000 happy customers. • Sepio has rich experience in supply chain & digital technologies. • For more information about smart packeging solution, visit to Dark side of Ecommerce: The rise of counterfeiting

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