Amazon, Dangdang selling fake goods in China

Summary:Well-establihsed Business-to-customer platforms, including Amazon and Dangdang.com, were found selling counterfeit cosmetics products in China from third parties.

E-commerce sites Amazon and Dangdang.com were found to have carried fake Estee Lauder cosmetic products, according to state-owned China Central Television (CCTV) reported on Wednesday.

Both Amazon and Dangdang.com reacted immediately to the reports.

Amazon responded on Thursday that fake goods were sold by a third-party seller, and it has closed down the shop permanently. Amazon added it will beef up scrutiny on these third-party sellers, particularly the beauty, personal care products online shops.

The U.S.-listed Dangdang.com, however, recognized that cosmetics sales on B2C platforms has long been an issue in China as most international brands refused to authorize online sales. In this case, the website could only require these individual sellers to provide official "product proof of purchase" to ensure that these goods for sale were genuine ones.

Dangdang.com also vowed to cooperate with these international cosmetics distributers to open their online sales channels.

A report by Daily Economic News said both Amazon and Dangdang.com, which started up their business by selling books in China, have not been involved much with cosmetics sales till today. Cosmetics distributors, on one hand, do not take the B2C platforms seriously due to their relatively limited sales, on the other hand, they are also reluctant to expand online.

A Guangzhou Daily news report revealed that over 20 percent of cosmetics sold online are fake in China these days. But it is hard to tell if these platforms are negligent in these cases, or otherwise, as all these B2C platforms are actively attracting all kinds of third-party merchants, and some earned more than half of income from these individual shops, making these platforms hard to resist the enticement, said the report.

Topics: E-Commerce, Amazon, China

About

Cyrus Lee, writing under a pen name, is a Hong Kong-based reporter in an English-language newspaper and a correspondent for a radio station.

Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.