Greatest Ways Sale Of Fake Products Can Hurt Your Business


The following are 7 Ways Sale Of Fake Products Can Hurt Your Small Business:

    • Fake products are inferior
    • They make customers spend more
    • Destroys business relationships
    • Causes poor customer retention
    • Fake products cause customer service problems
    • Harmful effects
    • Your take away

Simply put, fake or counterfeit products are goods, often of inferior quality, made or sold under another’s brand name without the brand owner’s permission.

Firstly, when you are involved in the sale of fake products, you should realize that you are infringing on the rights of the trademark, patent or copyright of the brand owner.

Secondly, they are made to look like original products, when in fact they are not.

In fact, sale of fake products is a global issue.

They are generally intended to deceive and take undue advantages of unsuspecting buyers.

Furthermore, sale of fake products is like a knife of two edges.

It affects both the seller and the buyer in much  the same or different ways.

This article is, therefore, looking at how sale of fake products can hurt the growth of your business.

Fake products are inferior

Inferior products do not usually meet the needs of the customers.

When your customer buys from you a product that did not meet his needs, there are five possible outcomes:

  • the customer returns the product to you
  • you replace the product for the customer
  • You refund money to the customer
  • the customer does not get a refund
  • He customer retains the product, though unhappily.

You can, therefore, see that sale of fake products creates more problems.


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Make customers spend more

Fake products makes customers feel bad.

Moreover, it the customer to spend more money.

For example, the customer will need to spend money moving from one shop to another, in search of the original product.

Consequently, you have left the customer:

  • disappointed
  • unsatisfied
  • frustrated
  • and unhappy.

At your own end you risk loosing the customer, if you do not manage the situation wisely

Consequently, loosing customers every now and then, you can end up with a failed business.

Destroy business relationships

The sale of fake products is one of the surest ways of destroying business relationships.

For example, when you started your business, you probably spent a lot of time and money trying to get customers.

Therefore, it will be bad news if, due to fake products, you now have to loose customers that you have labored so hard to get.

Most importantly, you can remember that if your customers no longer trust you, that is a huge problem.

Poor customer retention

Sale of inferior products can make you lose valuable customers to your competitors.

You are  in business to make sales. You need customers to remain in business.

And without customers, you cannot make sales and profits.

Moreover, if you sell a fake product to your customers, they will not give you referrals or recommend your business to their family and friends.

  • customer takes his

Furthermore, if you are reputed for selling inferior products, chances are that you will not be able to attract new customers.

Furthermore, if you will not be able to compete in the marketplace.

Causes customer service problems

Sale of inferior products can lead to huge customer service problems.

For example, even though you are able to make some customers happy, others may never come back to buy from you again.

Researchers have estimated that only about 5% of dissatisfied customers will complain.

Those who complain to you are the ones that are still interested in doing business with you in the future.

The remaining 95% will complain. Instead, they will simply walk away without a word!

These are the ones that will never ever make think of coming to your store again.

Fake products: Harmful effects 

Some fake products can actually be harmful to the buyer.

Fake products can be found in many products. But they are much more common in cosmetics and medicines.

For example, you cannot expect a customer that bought a cosmetic that damaged his skin to recommend your business.

But if you sell quality products, many customers will be willing and ready to pay a little more so long as they get value for their money.

Most importantly, satisfied and happy customers will not only stick with you, they will be proud and confident to recommend your  business to their family and friends.

They will talk the talk for you. And the best part is that talk is free.

Your take away

If you an importer, do not tell the exporter “ship the products. I know my people. They will buy”.

Or tell the supplier to mix up the supply:  “10 original and 40 fake products”.

Finally, in order to maintain your integrity, reputation and keep your business growing, you should distance yourself from selling fake products.

Related: 101 Customer Service Skills You Need For Your Business


By Samuel Ijenhi, B.Sc. Accounting

University of Benin,

Benin City, Nigeria.


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About Samuel Ijenhi

A graduate in Accounting, University of Benin, Benin City, Edo State, Nigeria.
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