How Counterfeit Goods Are Silently Undermining Your Brand in E-Commerce

As e-commerce continues to grow rapidly, brand owners are leveraging platforms like Shopee, Lazada, and TikTok Shop to expand market share and reach consumers more effectively. However, a silent but serious issue is rising in parallel: the increasing presence of counterfeit products and unauthorized sellers.

According to the OECD , counterfeit goods currently account for 3.3% of global trade , equivalent to approximately USD 509 billion per year (OECD-EUIPO 2021). On digital platforms, the threat of impersonation is no longer just a possibility — it is a daily reality for mid-sized and large brands.

Why are counterfeits so persistent on e-commerce marketplaces?

• Low barriers to entry : Anyone can open a storefront with virtually zero cost.
• Official products are easy to replicate : Packaging, product images, and descriptions can be copied and pasted within seconds.
• Lack of in-depth monitoring tools : Platforms usually only take action after a report is filed — while violations often happen unnoticed.
• Price discrepancies create confusion : Many consumers opt for products that “look similar” but cost less, leading to confusion between real and fake items.

How do counterfeits impact your brand?

Loss of control over brand image

When your product images, content, or names are used without authorization, the customer experience is disrupted. This is especially dangerous for premium brands where positioning and brand perception are critical.

Legal risks and customer complaints

Customers who unknowingly purchase counterfeit products may leave negative reviews on genuine product listings. In worse cases, defective fakes can damage brand reputation and lead to legal liability.

Distortion of business data and marketing performance

When traffic or sales are diverted to counterfeit sellers, advertising campaigns yield misleading data, making it harder for marketing teams to optimize effectively.

The situation in Vietnam

Vietnam is one of the fastest-growing e-commerce markets in the region. However, there are currently no official public statistics on the number of brand impersonation violations reported on local e-commerce platforms.

From LMC’s direct experience working with major brands in Vietnam, counterfeit listings, price dumping, unauthorized use of images, and keyword hijacking are frequent occurrences — especially in categories such as beauty, mother & baby, dietary supplements, and FMCG.

Brand protection requires a system – Not just reaction

The solution cannot rely solely on “manually reporting each violation”. Brands need to build a detection–response–monitoring system , including:

• Regular marketplace scans : Identify unauthorized sellers, unusual pricing, and stolen images.
• Enforcement of MAP (Minimum Advertised Price) policies: Maintain consistent pricing across all distribution channels.
• Fast enforcement on platforms : Through internal legal teams or third-party service providers.
• Documentation of violations : Serve as evidence for legal actions or negotiations with platforms.

Assessing the risk level for your brand

Whether you are an emerging brand or an established name, being targeted by counterfeiters and unauthorized sellers is a risk you cannot afford to ignore. In many cases, businesses only realize the issue after customers complain or when sales suddenly drop without clear reasons.

LMC eCommerce is currently helping brands in Vietnam conduct free brand health assessments. We’ll help you quickly evaluate:

• The number of unauthorized product listings on Shopee, Lazada, and TikTok Shop
• Sellers showing signs of price dumping, keyword hijacking, or illegal use of images
• Potential risks across your existing distribution network

Want to assess your brand’s health independently?

Download the checklist “10 Signs Your Brand Is Being Compromised” here!

Proactively protecting your brand doesn’t just preserve revenue — it reinforces trust with your customers, partners, and your entire distribution ecosystem.