Alibaba Cleans Out E-Commerce Platforms by taking Down Counterfeit Goods
Alibaba Group is facing scrutiny after their website was taught selling counterfeit goods which was then removed by the company. An as of yesterday more than 90 million listings were taken off the site that have might breached the intellectual property rights. The fake products were taken down across the e-commerce platforms of Alibaba until September this year after raising a record of US$ 25 billion for its initial public offering and spend US$ 160 million at the beginning of 2013 to block counterfeit products and boost consumer protection.
Part of Alibaba’s strategic plan is to create a reputation since now that the company is bigger in market value General Electronics and Procter and Gamble and is controlling the sales of fake and pirated goods is important in maintaining their credibility with investors and lessening the risk of lawsuits. Selling counterfeits is long been the criticism that faced the company and even when the company shares is doing well is doesn’t meant that Alibaba is not aware of the risks in the future.
Since its offering Alibaba gained 60 percent compared it with the 0.9 percent decline in the New York Stock Exchange Composite Index. Although Taobao and Tmall.com are the most popular e-commerce sites of Alibaba, these platforms do not sell any merchandise themselves but make most of their revenues on commissions and advertising.