Having business ventures across multiple e-commerce platforms with a strong brand identity may sound gratifying, but the challenge of dealing with unauthorised third-party sellers can suck the fun out of it. Global markets have become more intertwined with each other, and the evolution of technology has made e-commerce purchases a daily activity. According to Flipflow, retail sales of e-commerce are projected to grow by 300%, from 7% to 21% by 2025. However, this has also increased the activity in the grey market.
According to the Fashion Law, the counterfeit market has grown to $4.2 trillion, of which the majority are luxury or fashion goods; because of this, business owners have to bear the cost of these goods in terms of reputation and brand image. Moreover, these sellers offer the product at extremely discounted rates, further hampers the company’s revenue streams. Unauthorised sellers exploit loopholes in distribution channels, either by selling counterfeit products or diverting authentic goods into unintended markets. This is particularly rampant in Asia, home to massive e-commerce platforms, where counterfeit and grey market products proliferate. Brands face reduced pricing power, customer dissatisfaction due to low-quality or unsupported products, and long-term damage to reputation.
The ease of doing business on platforms like Flipkart, Walmart, and e-commerce has made it easier for unauthorised sellers to thrive. However, some strategies can help you curb the growth of these sellers.
Brands like Nike and Apple have already implemented a multilayer strategy to combat unauthorised Asian sellers. Nike has streamlined its distribution model, cutting ties with smaller retailers to focus on direct-to-consumer channels. On the other hand, Apple employed strict price controls and leveraged its global legal team to enforce intellectual property rights across borders.
Meanwhile, smaller brands can regularly audit their listed products in the marketplace, which helps you detect the presence of unauthorised sellers. Moreover, they can use tools like PriceSpider and BrandGuarde, which specialise in monitoring e-commerce channels for counterfeit or unauthorised products. These tools help brands pinpoint and swiftly act against violators. Moreover, ensure that your products are registered in all the relevant markets. This provides you with the legal right to take action against the offenders. Moreover, initiatives like AliProtect allow brands to report and remove counterfeit listings on platforms such as Alibaba. Although time-consuming, such measures are vital for long-term brand security.
Also, smaller brands are turning to external agencies to monitor and enforce MAP (Minimum Advertising Price) compliance. For instance, BrandGuarde’s services help brands regain control over their pricing strategies by targeting unauthorised sellers and optimising Buybox’s presence on e-commerce platforms, ensuring competitive visibility. This will prevent authorised sellers from undercutting prices, often incentivising grey market activity. Additionally, managing authorised distribution channels tightly—via exclusive contracts or geo-restricted sales—can curb parallel imports into unintended markets.
Another approach that business owners can use is shaking hands with the devil. Not all unauthorised sellers act maliciously. Some may be unaware of restrictions or willing to collaborate. Brands can convert high-performing unauthorised sellers into authorised partners, creating mutually beneficial relationships. This approach can turn potential competition into strategic allies while ensuring customer satisfaction with authentic products.
Further, educating customers about the risks of purchasing from unauthorised sellers can drive loyalty to authorised channels. Highlighting issues such as lack of warranties, poor quality, and potential safety concerns associated with counterfeit products empowers consumers to make informed decisions, reducing demand for grey market goods. This was done by the global brands like Apple and Nike. Both companies complement their strategies with customer education initiatives. By informing customers about the risks associated with counterfeit products—such as lack of warranties and compromised quality—Nike and Apple empower their audience to make informed choices. These initiatives and technology and legal enforcement serve as a blueprint for brands aiming to curb unauthorised sellers while protecting their market presence and reputation.
Partnering with major e-commerce platforms is another effective strategy. Platforms like Alibaba have introduced tools to combat counterfeiting, and active collaboration can enhance brand protection. Such partnerships can involve joint enforcement efforts, data sharing, and co-investment in anti-counterfeiting technology.
Unauthorised Asian sellers represent a persistent challenge, but proactive strategies can limit their impact. By combining technology, legal enforcement, education, and strategic partnerships, brands can protect their reputation, pricing integrity, and customer trust. As e-commerce grows, companies must stay vigilant and innovative to stay ahead of grey market dynamics.
