Moneycontrol
HomeNewsBusinessStartupFake goods: Why foreign investors are turning a blind eye to counterfeit e-commerce
Trending Topics

Fake goods: Why foreign investors are turning a blind eye to counterfeit e-commerce

As more Indians are expected to shift their daily shopping to the online world, stringent laws will ensure their trust in e-commerce.

December 29, 2017 / 21:13 IST
Story continues below Advertisement

It’s not a hidden fact that foreign investors who have backed India’s online marketplaces are aware of the problem of fake products listed on their investee portals.

But it’s not widely known that by turning a blind eye to operational laxity of e-commerce portals, foreign investors often encourage such practices and thus gain from rising numbers and a subsequently increased valuation.

Story continues below Advertisement

In the race to increase gross merchandise value, online marketplaces have resorted to building lax and sloppy processes through which sellers are on-boarded in a few hours, without proper verification and quality checks on the products being sold.

The problem also stems from the fact that 'onboarding executives' in
e-commerce companies have been given targets based on the number of sellers they can enroll in a month than the quality of the listing.