Alibaba Becomes Largest e-Commerce Company - Impact for Retail Brands

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Simon Jackson, chief commercial officer at brand protection company NetNames, comments on the news that Alibaba has become the largest ecommerce company in the world.

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“The news that Chinese online marketplace Alibaba has become the largest ecommerce company in the world has important implications for brand owners in the retail and consumer goods industries. The fact that Alibaba’s gross merchandise volume of $157 billion, for just two if its sites, adds up to more than Amazon and eBay combined shows China’s exponential growth into the world’s biggest retail market and reveals just how much retail traffic is moving online.

However, these spectacular figures, bring in to focus the growing threat of counterfeit products available online. Netnames is working in partnership with Alibaba to tackle counterfeit products which, for NetNames customers, can be as high as 70% of products offered on global marketplaces. This is a serious issue for brand owners as these products divert revenue, particularly in retail and luxury goods sectors where replica goods are most common.

So what can brand owners do to protect against this threat? By actively monitoring those selling fake products online via auction sites, organisations are able to identify where the goods are being offered for sale and can work with the platform providers to have them removed from the internet. In the past 12 months, NetNames has worked together with Alibaba to remove thousands of listings of counterfeit items from their websites, equating to millions of dollars of potential revenue – proof that action can be taken to remove a significant proportion of this threat.”

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