July 25, 2016
The German company, Birkenstock footwear, will not sell any more products on the internet site due to counterfeit sales.
Business Insider reported that Amazon has lost a “huge” retailer due to the sales of counterfeits but the website denies that this is a problem. Birkenstock has issued a ban of “any sales of its products by third-party sellers on Amazon” which in effect means that its products will be unavailable to the “world’s largest on-line store”.
CNBC managed to obtain an internal memo from Birkenstock USA’s CEO David Kahan, who criticised Amazon for their increasing problem with counterfeiting, and said that it had become “impossible to police all the illegal activities” that are harming the reputation of the company’s brand.
In the email Kahan said: “The Amazon marketplace, which operates as an ‘open market’, creates an environment where we experience unacceptable business practices which we believe jeopardise our brand. This includes postings by sellers proven to have counterfeit Birkenstock products. It also includes a constant stream of unidentifiable unauthorised sellers who show a blatant disregard for our pricing policies. Policing this activity internally and in partnership with Amazon.com has proven impossible.”
CNBC have also reported in the past that many sellers are “growing frustrated” by the amount of fake products on the site, pointing out that they were undercut on price and that the measures taken by Amazon to prevent this were weak. When CNBC made that report, Amazon “denied the sale of counterfeit products on its site” and told the news team that “occurrences of counterfeit products are very rare”.
However, according to CNBC, Amazon sent the same statement out again in response to their story, saying: “Amazon does not allow the sale of inauthentic items on its marketplace and occurrences of inauthentic products are rare. Every customer who orders on Amazon is covered by our A-Z guarantee and if they do receive inauthentic goods, we will refund or replace that item.”
Categories : Around the Industry