Hacker News new | ask | show | jobs
by jdietrich 2668 days ago
Amazon's last 10-K report specifically listed counterfeiting as a risk factor for investors. Quote:

"Under our seller programs, we may be unable to prevent sellers from collecting payments, fraudulently or otherwise, when buyers never receive the products they ordered or when the products received are materially different from the sellers’ descriptions. We also may be unable to prevent sellers in our stores or through other stores from selling unlawful, counterfeit, pirated, or stolen goods, selling goods in an unlawful or unethical manner, violating the proprietary rights of others, or otherwise violating our policies. Under our A2Z Guarantee, we reimburse buyers for payments up to certain limits in these situations, and as our third-party seller sales grow, the cost of this program will increase and could negatively affect our operating results. In addition, to the extent any of this occurs, it could harm our business or damage our reputation and we could face civil or criminal liability for unlawful activities by our sellers."

https://ir.aboutamazon.com/node/32656/html

Anecdotally, it's trivially easy to find obviously counterfeit products on Amazon. For example, the eighth result when I search for "yeezy" is this listing for an obviously fake pair of Adidas Yeezy Boost 350 v2 shoes. In many product categories, Amazon looks more like a seedy flea market than a multinational retailer. I have no idea what proportion of supposedly legitimate listings are for counterfeit products, but I have personally received counterfeit SD cards and USB chargers.

https://www.amazon.com/HEIMA-TRADE-Lightweight-Breathable-Ru...

https://www.flightclub.com/yeezy-boost-350-v2-white-cblack-r...

1 comments

I agree with their assessment that the A2Z Guarantee is a financial risk as the potential for counterfeits increases with scale. Amazon returns are shockingly easy and I am always given the benefit of the doubt. Makes sense that they would call that out as a risk factor.

That listing for the "yeezys" you linked, though, is a great example of something I would never even consider... I don't have a specific heuristic for how I select products, but this listing violates a lot:

-Prime availability

-Multiple sellers with extensive trading history

-At least 10 ratings and preferably at least 100

-Rating above 4* and maybe 3.5* if there are limited options

-Description that is written in legible English and reflects the copy on the item as found in a store

-And only after multiple searches using different search terms to identify the "right" keywords that bring the most relevant products

This has and will be a problem on any platform, whether it's eBay or Alibaba or on Canal Street in NYC [1]. If it seems shady, it probably is.

[1] https://www.unpublishedarticles.com/handbags/