As the COVID-19 crisis continues to grow in severity, the worldwide number of cases of the virus has reached well over 1.5 million with roughly 13,000 new cases reported daily. The impact of the virus on the global economy cannot be understated. Brick-and-mortar businesses across the planet have ceased operations. Airlines are all but grounded. Populations are on lock-down. Global stock markets are experiencing unprecedented levels of volatility.
While the COVID-19 pandemic has had a significant negative impact on worldwide business, there is hope for those operating in the e-commerce space. While consumers are avoiding brick-and-mortar shops, the digital space is in a better position to adapt during COVID. As consumers shift their spending to online channels – for everything ranging from necessities such as grocery, sanitary items and pet food to entertainment items and electronics – e-commerce businesses can come out of the pandemic in good shape with the right strategy and maneuvering.
Navigating, without Exploiting the Situation
If you’re following the rules, you’re likely reading this at home while you practice “social distancing.” With such a large percentage of the global population isolated within their homes, e-commerce spending has skyrocketed. According to The New Consumers’ report from Rakuten Intelligence, e-commerce spending in the United States has increased roughly 36 percent year-over-year for March, “almost twice the growth rate it had been generating this year.”
On the surface, it appears that the pandemic is in fact, benefiting e-commerce. However, it’s a lot more complicated than that. According to the latest Europol press release consumers are not the only ones moving online. The report highlights how criminals who adapt during COVID have been quick to exploit the crisis with increased listings of counterfeit and substandard goods.
Many are exhibiting predatory behavior, such as purchasing these items and reselling them on Amazon or other e-commerce marketplaces at ridiculous markups, while others are listing unsafe and untested products. There are even sellers out there going as far as to claim they have products that cure the virus.
But alongside the obvious product lines linked to the crisis, counterfeiters and grey sellers in every category are taking advantage of the increased volume of unsuspecting consumers online.
Therefore, it’s now more important than ever before for brands to protect themselves and their customers from counterfeit and grey market activity by making an effort to adapt during COVID.
Protecting Your Brand and Customers
E-commerce marketplaces like Amazon have always had a problem with counterfeit goods. Now, the issue of counterfeit products on e-commerce marketplaces has been exasperated by the COVID-19 pandemic as panic-driven shoppers turn to the web for face masks, hand sanitizer, and other products that provide protection from the virus.
The unprecedented increase in demand for these products has opened a window of opportunity for counterfeiters to swoop in and take advantage of the situation with a flurry of brand-name goods at knock-off prices.
Savvy shoppers are aware of this issue, and have legitimate concerns about counterfeit or poor-quality products being sold online in the wake of COVID-19.
As a trusted brand, it is your duty to quell these customer concerns and to combat grey market activity in e-commerce marketplaces to ensure your brand and products stay out of the wrong hands.
While many online shoppers are cognizant of the risks, a significant portion of online consumers are unaware of the dangers of counterfeit products and grey market activity. It’s important to ramp up your educational approach to fighting counterfeiters – through marketing, social media, and other methods – to inform their consumers of what makes their products unique, how to spot fakes and list authorized resellers, where possible.
Luckily, two major players in the online advertising game – Google and Facebook – are offering small and medium-sized businesses incentives to ramp up their online advertising efforts. Google is offering, advertising credits for its platform, while Facebook’s Small Business Grant Program has opened up $100M in cash grants and ad credits to help brands – both online and off – navigate these challenging times.
What’s more, brands need to take steps to ensure the pathways that lead their customers to find fake versions of their products are severed and un-authorized resellers are shut down and removed quickly. As highlighted in a previous GreyScout blog, this is where brand protection software comes in. Brand protection technology with keyword monitoring, image recognition, and machine learning can autonomously alert you of fakes or unverified resellers on the internet so that you can take swift action to have unauthorized content removed.
This is especially true for e-commerce retailers dealing with products that have become increasingly popular during the COVID-19 pandemic, such as vitamins, health products, electronics, children’s toys and pet foods. These products especially should be monitored closely for an increase in activity by shady sellers. Be diligent. Keep an eye on marketplaces, search listings, paid ads, and rogue websites. Adapt during COVID!
The Bottom Line
Keep in mind that with this influx of new shoppers moving online, it may be the first time many potential customers will come into contact with your brand so it’s absolutely critical to safeguard the customer experience by protecting them from increased grey market and counterfeiting activity, and in the process ensure your brand comes out of this situation stronger in the long run.
