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23 December 2020
Shopify experiences 'growing pains'
Direct to consumerOnline retailUnited States
As many as one in five Shopify-powered retailer sites could pose some sort of risk to consumers, according to an analysis by data analytics company Fakespot.
What’s the story?
Shopify has grown rapidly during the pandemic as physical retailers pivoted to selling online, but it has also attracted bad actors, the Financial Times reports, including China-based merchants posing as US small businesses.
Shoppers are often attracted via social media advertising and there is no mechanism to flag problems via reviews and returns.
Among the activities registered by Fakespot are: collecting personal data with no intention of delivering a product; selling counterfeit products; very poor customer service.
Shopify has “multiple teams” addressing what it says is an industry-wide issue.
Aaron Cheris of Bain & Co suggests that criminals have moved away from marketplaces that have invested more in anti-counterfeit measures and that Shopify is experiencing “growing pains” as it attracts new merchants.