Amazon.com, Inc. (NASDAQ:AMZN) has announced that it is rolling out an initiative that will shut down counterfeit products from third-party retailers.
The e-commerce giant has become a hotspot for third-party retailers to sell their product over the years, following a number of years in which the company sold its products directly for the most part,.
Amazon noticed how much money there is in adding third-party companies to its servers as each of these businesses shells out a portion of their revenue to the online retailer in exchange for garnering more exposure thanks to the site’s popularity.
This move has been a win-win for the most part as roughly 50% of the sales that take place in the site are conducted by third parties, but some of these are selling counterfeit versions of popular electronics and other products that are faulty upon arrival in order to grab a quick buck.
Amazon is battling this move by encouraging other retailers to register their logo and intellectual property in order to differentiate the legit businesses from the conniving few looking to hoodwink consumers.
The retailer recently announced that it will be charging Maine customers a sales tax starting April 1. There are 36 states where Amazon charges a sales tax to its customers, including New York, New Jersey and Colorado.
AMZN stock is up 0.6%.
