RedCloud CEO Justin Floyd Advocates for Open Commerce and AI to Combat Counterfeits

PR Newswire

28 May 2024 at 8:10 am·5-min read

A study reveals 60% of Amazon products are counterfeit, with 43% of reviews being fake. SMBs are hit hardest. Justin Floyd, CEO of RedCloud, advocates for Open Commerce and AI to combat counterfeits and restore trust. Counterfeits pose economic and health risks, funding crime. RedCloud's platform ensures product authenticity, connecting FMCG brands with reliable partners.

LONDON, May 28, 2024 /PRNewswire-PRWeb/ -- Studies have concluded that up to 60% of products sold on Amazon may be counterfeit (1), and 43% of product reviews for Amazon's best-selling products are fake. (2) Most third-party sellers on Amazon are small and medium-sized businesses (SMBs), accounting for 60% of Amazon's sales in 2023. (3) With $2 trillion worth of counterfeit products sold each year, (4) how can SMBs be sure that their inventory is what their supplier says it is? Who can they trust? Justin Floyd, Founder and CEO of RedCloud, suggests, "With a combination of Open Commerce, AI, smart technology, and small businesses working together, the blight of poor quality and often dangerous knock-offs could disappear over the next decade. Now is the time to bring trust back into trade."

A study by Markmonitor reports that 47% of brands are losing revenue due to counterfeit products, with one-third experiencing a drop of 10% or more. Fifty-eight percent of the companies interviewed believe things will get even worse as counterfeiters become more sophisticated and the high cost of living forces consumers to seek out cheaper goods and services. (5) Fast-moving consumer goods (FMCGs), such as clothing and health and beauty products, are the bread and butter of online sales. Apparel is the world's top-selling commodity. According to a survey by Michigan State University, clothes and shoes are the most counterfeited items in the retail supply chain. (6)

Combatting the scourge of bogus consumer products is truly a matter of life and death. Among the most dangerous counterfeit items are pharmaceutical, baby, cosmetic, automotive, alcohol, and food products. (7) The consequences of counterfeit products can be catastrophic as they are unregulated and not subject to any health and safety standards. Many fake products contain carcinogens and other harmful substances and chemicals that could pose serious health risks, even death. A laboratory study of counterfeit goods by the American Apparel and Footwear Association (AAFA) discovered that 36.2% of the items tested contained alarming levels of arsenic, cadmium, phthalates, and lead. (8)

It's an endless loop of cause and effect. The more consumers buy fake products, the more fake products are manufactured. Floyd warns, "The dangers of tolerating and even encouraging this vicious cycle are incalculable and infinite. We must do something about this now, not three years from now."

Getting to the bottom of this counterfeit quagmire requires clearly identifying exactly where these products are coming from. Despite recent efforts to crack down on fake merchandise in the online retail space, there are too many vulnerabilities along the eCommerce supply chain to prevent future iterations of temporarily sidelined counterfeiting cartels. RedCloud is a pioneer in Open Commerce, the second generation of eCommerce, utilizing deep tech software like Artificial Intelligence to pinpoint the source of fake products. RedCloud's Intelligent Open Commerce Platform helps FMCG brands, distributors, and local merchants connect with trusted trading partners along the supply chain, ensuring that all products have been vetted for quality and authenticity.

SMBs spend years building their brand's reputation, which can be destroyed in an instant by a predatory supplier of counterfeit goods. Open Commerce treats the cause, not the symptoms, by guaranteeing the integrity of every trade partner. Floyd attests, "By investing in technology and signing up with an Open Commerce environment, businesses can be confident that they are buying genuine, high-quality products from the right sources at the right price."

About RedCloud
RedCloud Technology, founded in 2012, stands as a "Rebel Alliance," leading a bold, second-generation e-commerce transformation. Rejecting the high fees of tech giants, RedCloud leverages AI-driven supply chain solutions to empower smaller businesses, giving them the tools to compete with major corporations. Their democratized, cloud-based platform provides real-time financial visibility, offering a level playing field that breaks free from the dominance of conventional marketplaces. RedCloud embodies a fairer, more inclusive digital commerce future where Davids can stand tall against Goliaths. For more about RedCloud Technology visit their website at https://redcloudtechnology.com/.

References:
1. Matcha, Vidyullatha. "Amazon Counterfeit Products: Everything You Need to Know." LinkedIn, 31 Jan. 2024, linkedin.com/pulse/amazon-counterfeit-products-everything-you-need-know-matcha-w6mpc/.
2. Millions of Amazon Reviews Fake, Study Finds, cybernews.com/security/millions-amazon-reviews-fake/. Accessed 14 May 2024.
3. Babcock, Stephen. "60% of Amazon Sales Are Generated by Third-Party Sellers." The Current, The Current, 25 May 2023, thecurrent.media/amazon-third-party-sellers.
4. "$2 Trillion Worth of Counterfeit Products Are Sold Each Year. Can Ai Help Put a Stop to It?" CBS News, CBS Interactive, cbsnews.com/news/ai-counterfeit-detection-amazon/. Accessed 14 May 2024.
5. Lg. "How Does Counterfeiting Affect Brands?" Potter Clarkson, potterclarkson.com/insights/how-does-counterfeiting-affect-brands/. Accessed 14 May 2024.
6. Person. "MSU Survey: 7 in 10 Consumers Deceived into Buying Counterfeit Products Online." MSUToday, 19 Oct. 2023, msutoday.msu.edu/news/2023/msu-survey-7-in-10-consumers-deceived-into-buying-counterfeit-products-online#:~:text=Clothes%20and%20shoes%20%E2%80%94%20the%20most,harmful%20chemicals%20such%20as%20lead.
7. Chekkit Technologies. "6 Most Dangerous Counterfeit Products - Chekkit Blog." Chekkit Technologies, 26 Nov. 2022, chekkitapp.com/blog/6-most-dangerous-counterfeit-products/.
8. Ndure, Isatou. "Aafa Demands Answers on Counterfeit Goods." Just Style, 1 Feb. 2024, just-style.com/news/aafa-demands-answers-from-e-commerce-giants-on-counterfeit-goods/?cf-view.

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RedCloud CEO Justin Floyd Advocates for Open Commerce and AI to Combat Counterfeits

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