WALMART stocks more than half a billion items in its inventory, a significantly large sum even for a retail giant.
This includes products from the Walmart Marketplace, which allows third-party sellers to list their merchandise.
Walmart is making changes to its online marketplace (stock image)[/caption]
It seeks to prevent the sale of counterfeit goods by fraudsters (stock image)[/caption]
But the retailer also says this seller-friendly format could open the door for bad actors who list counterfeit goods.
In fact, the Federal Trade Commission (FTC) has urged Walmart and Amazon to crack down on sellers listing products with false “Made in USA” tags.
That’s one reason why Walmart is revamping its campaign to combat the sale of counterfeit goods on its website, according to a press release.
Walmart’s mission includes the following operations.
- AI-driven and real-time monitoring of product listings
- Identity and business verification, with ongoing compliance reviews
- Restricting who can sell within certain categories
- Swift removal of sellers violating policies
- Deployment of tools that allow users to flag products
- Establishing convenient store-based return opportunities for Marketplace items
Last month, Walmart was accused of selling fake Sydney Sweeney bathwater soap.
But it can get a lot worse than being duped into buying fake celebrity soap.
In fact, it can be deadly.
According to the National Crime Prevention Council (NCPC), fake products like faulty electronics cause more than 70 deaths and 350,000 serious injuries each year.
“Bad actors seek to mislead and defraud customers in a rapidly changing environment,” Walmart said in a statement.
“While counterfeits are estimated to represent a tiny minority of the products sold on marketplaces, it is an issue that plagues all retail marketplaces.”
The chain is already delisting thousands of items.
In addition, Walmart will be partnering with the following agencies to crack down on counterfeiters.
- The FBI
- The Department of Homeland Security (DHS)
- Retail Industry Leaders Association (RILA)
- Buy Safe America Coalition
- National Retail Federation (NRF)
- Information Technology and Innovation Foundation (ITIF)
- The U.S. Chamber of Commerce
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Here’s how to sign up to Walmart+:
- Head to the Walmart website.
- Select ‘Account’ and then ‘Walmart+’.
- Click ‘Start free 30-day trial’.
- Enter your information.
- Enjoy the trial and benefits.
Remember to cancel before the 30 days are up, or pay $12.95 per month (which you can cancel at any time) or $98 for the annual plan if you want to keep it.
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ONGOING CHALLENGES
Despite these measures, criminals still slip through the cracks.
In fact, an analysis by Inc. found that Walmart was selling an 11TB SSD external storage drive for under $30 – a product that doesn’t exist at that price.
Walmart told Inc., “Our relationships with customers and third-party sellers who use our marketplace platform are built on trust, and Walmart has zero tolerance for fraudulent sellers or the sale of prohibited items.”
“We’re investing heavily in technology, people, custom-built capabilities, and robust policies and processes to protect customers and sellers,” Walmart continued.
GLOBAL ISSUE
While Walmart maintains the majority of products listed on its website are legitimate, counterfeiting has become a global challenge for the retail industry.
Each year, more than $2 trillion of counterfeit goods are sold.
And trade in pirated goods accounted for 2.5% of total world trade in 2019, according to a report by The Organisation for Economic Co-operation and Development.
Counterfeit electronics in particular make up a $169 billion industry, according to CSC, a global provider of business administration and compliance solutions.
Moreover, seven out of 10 individuals are tricked into purchasing counterfeit goods online, per a study by Michigan State University.
But retailers are stepping up.
Amazon has established an in-house counterfeit crime unit consisting of former federal prosecutors and data scientists around the world.
The company uses AI tools to scan more than 8 billion listings from sellers every day.
Walmart has also been making other changes recently.
It added a new “white box” feature to shopping carts, and consumers were urged to look underneath.
A memo was also leaked at Walmart recently that hinted at job cuts and a “community impact.”
