Brands taking marketplaces to court; Customers Watchout!

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Marketplace giant Flipkart accused by US based performance brand Skechers. Recently, US based performance shoes brand Skechers filed a petition in Delhi High Court against eCommerce marketplace giant FLIPKART and others for selling Skechers duplicate products. Around 15,000 pairs of forged shoes were branded as Skechers and reports also state that company is yet to raid other warehouses of vendors who are involved in buying and selling of counterfeit shoes. Tommy Hilfiger, Superdry, Calvin Klein, Lacoste and Puma have helped confiscate thousands of fake apparels through court aided raids on warehouses. Skechers has said it will take appropriate action to protect its brand name and safeguard copyright and intellectual property, as reported by Economic Times.
Several eCommerce websites have been accused of selling dummy products on their platform but this was a tawdry move by eCommerce marketplace tycoon Flipkart.
According to April 2017 report, Flipkart recorded an average of 5 lakh shipments daily which makes Flipkart India’s largest ecommerce market place.
There are few important points’ customers as well as business owners should keep in mind before buying or selling online.

Brands adopting Direct-to-customers strategy

To increase product sales dealers go for eCommerce marketplaces such as Flipkart and Amazon in order to reduce cost of online marketing and find it stressful to manage an online store. The only problem with these marketplaces is they don’t verify the product whether it is original or counterfeit and end up selling substitutes of brands to customers. For a  brand to sell its product online the first thing it should do is setting up its website with online store so that it is easier for customers to buy the original products from authorised dealer.

Online stores which wants you to buy more

Online stores want their customers to spend more on their site but this idea of selling often brings more problems rather than sales. Dealers who provide products to online stores are not necessarily verified sellers. The sole duty of online store owner is to cross verify what they are selling and whom they are promoting. If a brand creates an online store it will be more beneficial for them as it can build customer relationships as well as increase the sales of their products online. More and more people are preferring to buy online rather than visiting the store personally.

Marketplace vs Online Brand Store 

Customers can buy directly from trusted brand owners rather than from third party.
Products bought from Online Brand Store are 100% genuine whereas products bought from marketplace wouldn’t always be that genuine. Cross verification does not take place in matters of marketplace. Thus products bought from marketplaces doesn’t give you the assurance whether the product is 100% genuine or not.

This could be the reason for Nike to launch it’s own online store on its official website. Customers will now be able to buy Nike products from the online store.

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