Alibaba Removed 90 Million Fake Products and Listings from its Sites Pre-IPO


To control the sale of fake and pirated goods, Alibaba has removed 90 million suspicious listing form its marketplaces. The fake products listing were taken down across its e-commerce platform through September this year, the company said during a press conference on Tuesday in Hangzhou. The firm had raised USD 25 billion in an IPO and invested heavily in removing knock-offs from its sites.

As per a TechCrunch report, the company is also working with the law enforcement as well as brand owners to identify and remove counterfeit goods on its sites. In a company report, Alibaba Group stated that it had invested over USD 160.7 million from the beginning of 2013 till end of November this year, to block counterfeit products and boost consumer protection.

It also cooperated with Chinese law enforcement agencies in over 1,000 counterfeiting cases this year, which resulted in the arrest of 400 suspects from 18 counterfeiting rings and 200 brick and mortar stores, factories or warehouse were closed.

The research further states that 90 percent of all counterfeit goods were distributed from 10 regions in China, with the top three being the Pearl River Delta region, Yangtze River Delta region and Southeast China. “By using transaction data and mapping technology Alibaba Group found that more than 60 percent of counterfeit watches and jewelry originate from Southern China, while 60 percent of counterfeit outdoor sporting goods are from Southeast China region and 50 percent of counterfeit apparel originates from Eastern China,” the company said.

The tools to detect these activities include data mining technology to analyze and track transactions for counterfeit distribution and sales; an online complaint platform for brand owners to report infringements and random checks by using third parties to look for fake goods on its platform.

In 2012, Alibaba was removed from the U.S. Government’s Notorious Markets list in 2012 and at that time company acknowledged that the problem will be difficult to remove.

Counterfeit products and unauthorized selling is a plague in Indian e-commerce as well. Brands have been crying out for long against the marketplaces who are unable to regulate the unauthorized sellers and duplicate products. Maybe India and Indian marketplaces can take a learning from Alibaba and Chinese Government to realise the gravity of the situation

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