As someone who purchases nearly everything on Amazon (#primeforlife), I am very aware of who I am purchasing my goods from, where they are being shipped from, and if the items have the potential to be counterfeits. Problem is, I am in advertising and help sell many products on Amazon, but, the average Joe – they might not seek out these answers prior to purchase. When products are purchased on Amazon, under the belief that they come from one brand, but the products are really from an unauthorized seller – problems typically arise.
Some of these not-so-fun issues include:
Customers bad-mouthing a product to their friends and family, or worse on social media when the product is not as expected or described.
Customers leaving horrible Amazon reviews – a sure-fire way for sales to plummet if it impacts the brand’s overall rating.
Most customers these days will only give a brand one shot, and if they get a counterfeit item, or an item they don’t like, they won’t purchase again. With enough of these encounters, lifetime value (or revenue for the company over span of a customer’s lifetime) can decrease significantly.