Online retailer Amazon.co.za has stepped up its anti-counterfeit controls to root out fake products on its platform, as the marketplace expands across South Africa.
With counterfeit goods increasingly flooding the South African e-commerce market, the shopping site says it is positioning product authenticity as central to its local growth strategy, as local customers increasingly take to the platform.
In an interview, Robert Koen, MD of Amazon Sub-Saharan Africa, tells ITWeb the platform, which launched locally last May, enforces a strict zero-tolerance policy for counterfeit products, supported by advanced technologies to stop fraudulent sellers and listings before they reach customers.
“Amazon strictly prohibits counterfeit products on our store,” notes Koen.
“We have put proactive measures in place to prevent counterfeit products from being listed, and our advanced technology scans for potential counterfeit, fraud and abuse. When we receive an accurate notice of infringement (NOI), our combination of expert investigators and technology tools allows us to quickly assess and validate the NOI and take action as appropriate.”
In cases where a NOI has been received, investigations take place and consequences may include removing listings, suspending accounts or permanently banning sellers from the platform, he states.
The growth of online shopping over the past few years in SA has made online platforms a breeding ground for counterfeit goods, as marketplace sellers and scammers stop at nothing to exploit unsuspecting shoppers, according to the E-commerce Forum South Africa.
By plugging into Amazon’s global infrastructure, Amazon.co.za says it established its local site with fortified counterfeit protection and the platform is consistently working to root out fakes not only on the surface — but deep into supply chains and seller networks.
The global scale of Amazon’s counter-counterfeiting effort is handled by the Counterfeit Crimes Unit − a global team that works with brands, law enforcement and customers across the globe to stop bad actors and hold them accountable.
According to Koen, Amazon.co.za’s first line of defence against counterfeit product listings is its stringent seller verification process. Before any seller is allowed to list items on the marketplace, they must undergo identity checks that include government-issued photo identification, business documentation and behaviour-based risk assessments.
“Amazon uses advanced technology and expert human reviewers to verify the identities of potential sellers [during the application phase]. When prospective sellers apply to sell in Amazon’s store, they are required to provide a form of government-issued photo ID, along with other information about their business. In addition to verifying these, Amazon’s systems analyse numerous data points, including behaviour signals and connections to previously detected bad actors, to detect and prevent risks.”
These checks allow the platform to detect and prevent risks at the earliest point, says Koen.
Expanding delivery footprint
Amazon − including Amazon Web Services − employs more than 5 000 people in SA and has invested billions of dollars in the local market over the past two decades.
Koen points out that the company is “here for the long-term” and will continue expanding its infrastructure as demand grows.
While SA presents typical emerging-market challenges, Koen adds customer expectations are consistent with global trends, with factors such as competitive pricing, broad selection and reliable delivery being key priorities.
Amazon has three fulfilment centres in Johannesburg, Cape Town and Durban – with this infrastructure expected to grow – as the online platform scales, according to Koen.
Since its local inception, the site has seen strong growth in sales with “hundreds of thousands” of shoppers and an increase in repeat customers, he adds.
The site has expanded its product selection, growing from 22 to 28 categories, while pickup points have increased from 3 000 to 4 300 nationally.
Amazon is seeing growing uptake from customers based in rural areas, with heat-map data showing order volumes reaching parts of the country traditionally underserved by large e-commerce platforms.
“We are pleased with our performance to date, which is currently exceeding expectations. Our repeat customer rate is growing fast.We’re delivering to all corners of South Africa. Customers in rural areas appreciate having access to a similar service and delivery experience as those in major cities.”
The e-tailer’s marketplace has also seen growth in online sellers and listed small businesses, although the company does not disclose its seller numbers.
“We have thousands of local sellers, including small businesses, registered to list and sell their products on the store. Independent sellers now account for more than 60% of global sales in Amazon’s stores. By enabling independent sellers, small businesses and brands to list products on Amazon.co.za, the marketplace expands the product range for customers, giving them more reason to shop,” Koen concludes.
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