AliBaba Keeps Dominating The Market Despite Of The Counterfeit Goods Issue

A week ago, Alibaba left a mark on the business world when it sold $14 billion of merchandise in a single day considered to be more than combined sales of Black Friday and Cyber Monday deals.

But the company is still working days and night to counter a mighty issue: counterfeit goods. Since 2013, Alibaba has spent more than $161 million to eradicate the dilemma of counterfeit goods, which once Jack Ma, the founder called ' cancer we have to deal with,' as reported by Business Insider.

Alibaba has been buried in queries concerning counterfeit goods for quite a long time now.

In May, a petition filed by Kering, which owns leisure titans, requested to find the financial damages and a sanction against Alibaba for supposedly selling artificial goods on their site. Few weeks later, a related later was sent to Ma requesting the crackdown on the matter sent by American Apparel & Footwear Association.

"We are asking for Alibaba to begin addressing counterfeits in a manner that is transparent, comprehensible and fast," the AAFA writes in the letter. "We are asking for Alibaba to create a process whereby Alibaba removes counterfeits quickly at the request of certified brands."

Business corporations and famous trademarks are frequently examining AliExpress which are worried that the company will send them bogus goods from Chinese factories straight into client's hands on a worldwide level.

Paul Kilmer, Founder of Trademark Working Group, a collective of U.S companies and organizations says, "There are substantial concerns among brand owners that expanding Alibaba's, AliExpress platform will result in a ver significant increase in the sale of counterfeit goods and otherwise infringing goods," as revealed by Wall Street Journal Blog.

Alibaba has said that counterfeiting is a common problem for all e-commerce companies and that only a small portion of transactions leads to client's complaints about fake goods. "Like all global companies in our industry, we must continue to do everything we can to stop these activities," a spokesman explained.

More than 40% of goods sold online in China during 2014 were either counterfeit or bad quality, according to official Xinhua news agency. A report conveyed to the China's top legislators on Monday revealed that just under 59% of items sold through Alibaba last year were 'genuine or of good quality' as quoted by Forbes.

As of 2012, Alibaba no longer comes on the list of 'Notorious markets' by US Trade Representative. And some analysts also believe this issue of counterfeit goods by Alibaba is also coming to an end. The company needs to work double time to release itself from the counterfeit issue if it wants to be still the dominating online retailer across the globe.