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. 

Final thought

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.

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Sourced from Financial Times