WATCH OUT FOR COUNTERFEIT ITEMS!

Imagine you are purchasing an item over the internet which cost you a fortune, only to realize that it was counterfeit. How would you feel about that? Wouldn’t you feel disappointed? Wouldn’t you lose your trust in online shopping? You see, this has been one of the ongoing issues which has been causing consumers to be in the state of trauma.

Some customers who initially planned to purchase genuine designer products reported that they received counterfeit products once receiving their packages and their efforts to contact the sellers remain pointless since the sellers have changed their contact numbers (The Star Online, 2016). Thus, before hitting the “buy” option, consumers are encouraged to carry out their own due diligence to avoid this kind of pitfall. If one encounters with a branded item but the price is too cheap, the chances that the seller may be listing fake products are rather high. Carousell, which is one of the popular digital marketplaces also advises their users to meet the seller at a particular for product inspection when purchasing such items. In order to safeguard and ensure the product meets the expectation of a customer, cash-on-delivery is said to be the best alternative (The Star Online, 2016). 

Basically, unauthorized seller would photograph the fake branded items in a set up premise, not only to make the stocks to appear attractive, but also deceiving potential buyers into thinking the items sold are authentic. On top of that, these sellers have the audacity to forge the certificates of authenticity. It is worth to mention that the certificate of authenticity does not have intrinsic commercial value and is never sold separately from the product. To prevent any suspicion among the buyers, they create the impression that the items are genuine by simply attaching the certificate together. In the case of customers who were fallen victims to this dispute, they are welcome to recognize sellers who advertise fake products on the internet by reaching KPDNKK toll-free line 1800-88-6800 in order to prevent other online shoppers from being the next target. 

It is not always the case of product originality, but there are other important issues namely the ability to differentiate genuine products from the fake ones. This issue may result in continuity in quality, risk reduction and protection of brand and intellectual property. Because of the almost identical packaging to the original ones, consumers are easily tricked into buying counterfeit products. This is extremely dangerous when it comes to products related to health product where consumers’ wellbeing may be jeopardized and they may be exposed to illnesses. Despite the usage of chemically hazardous ingredients in the products for advanced results, the sellers could not careless about the customers and would not take the blame as they are constantly making their way to generate even more profits from the business. 

Apart from seizing the counterfeit products, businesses who owned the brand of the products should immediately take legal action towards the sellers so that consumers can steer away from illegal businesses piracy can be put to an end. Furthermore, the authority should regularly conduct investigations at manufacturing premises as well as questioning the suppliers involved. The act of producing and selling counterfeit items is considered as a serious offense. In order to maintain the integrity of digital marketplaces, the goods are supposed to be destroyed under the order of the court, according to the Supply Control Act 1961, the Copyright Act 1987, the Consumer Protection Act 1999, the Price Control and Anti-Profiteering Act 2011 and the Trade Descriptions Act 2011. 

SEAMLESS ONLINE EXPERIENCE IN 2018 AND HOW IT IS DONE

In 2017, the online shopping sphere has been expanded all due to the rapid growth of the e-commerce market in Malaysia. Many businesses based in Malaysia are grabbing this opportunity by going digital. Furthermore, a penetration rate amounting to 2.5% is witnessed in the Malaysian e-commerce industry (Kim, 2017). However, 2018 is the year where the e-commerce penetration rate in Malaysia is expected to double, anywhere between 4% to 5% (Kim, 2017). Hence, it is time for digital marketers to step up their game by continuously innovating their services and offerings, supporting the development of the industry and surpassing the expectations of consumers. 

These days, other than taking the advantages of digital marketplaces to help them organizing their day-to-day expenses, consumers are looking forward to more options for payment. The Visa Consumer Payment Attitudes Study (2016) reported 7 out of 10 Malaysians are willing to utilize mobile wallets while 68% of Malaysians prefer the use of contactless payments instead of cash. Plus, online shoppers will not have to deal with the long queue at the ATM and businesses can operate with the minimal amount of investment, cost and risk. For instance, SMEs and micro-businesses are going cashless while enjoying a low merchant discount rate of 0.8% through the utilization of mobile payment applications such as vcash offered by Digi. After much consideration, many digital marketers are striving to provide a wider assortment of convenient and popular payment options for online shoppers. 

Would you believe that 80% of users are reportedly leaving the cart during the checkout process? According to Forbes (2014), consumers are more likely to the tab, without having to complete the transactions all because of the laborious and tedious process. In addition, digital marketplaces are suffering losses due to cart abandonment. Thus, digital marketplaces are ought to design a sophisticated, friendly and easy checkout system. Besides that, due to the massive information leaks from the internet becomes one of the factors of abandonment, digital marketplaces are introducing security feature onto their websites. 

Other than wishing for a fast delivery, consumers nowadays are anxious and curious about the whereabouts of their purchases. They would like to know the current location of the items and when they would be arriving at their doorstep. Hence, digital marketplaces are providing a greater transparency on product delivery by informing their customers the tracking numbers through a comprehensive tracking system. For example, Photobook Malaysia comes up with its own intelligent application where the progress of the ordered items is updated from time to time and should customers face any difficulties, their friendly customer care service is always ready to assist. 

With these strategies, the Malaysian e-commerce prospect in 2018 will be on the right track to succeed as well as making the digital marketplaces for both businesses and consumers.

FRAUD TRANSACTION AND DELIVERY: SHOPPERS ARE WORRIED

A number of online shoppers have voiced out their fear of buying goods online due to online fraud. There are numerous reports regarding fraud occurring in our country. Online shoppers reported that they did not hear any updates from the sellers by the time they have made the payment. Other than the sellers terminating their contact numbers or websites, they would deliver items which failed to meet the requirements as advertised on the digital marketplaces, leading the customers to ultimate disappointment. 

Moreover, there is a case where a scammer manages to access a depositor’s bank account to conduct his criminal activity. The scammer who disguised himself as a loan agent, had persuaded 200 people to deposit their money into the complainant’s bank account for RM1000 scooters he advertised on FaceBook. The complainant who realized his account had been so active with money going in and out was left with charges as those depositors had pressed charges against him. Unfortunately, the person committing the crime vanished with the loan processing fee and due to the small amounts involved, the reluctance of the victims to lodge police reports had prompt these scammers to pursue their illicit trade without being traced (Mukhtar et al, 2016).

Hence, before successfully enrolling these businesses or individuals on digital marketplaces, they need to be authorized first. The details of the company or individual, company registration number, identity card, company address and bank account statement should be acquired beforehand. These documents can beneficial when it comes to performing a verification check. Even though these online scammers would provide a false information, this measure would impede them from continuing their activities due to the high level of security. 

MALAYSIAN CONSUMER’S AWARENESS ON DIGITAL MARKETPLACE ISSUES

The e-commerce which was first introduce in the mid-1990s has been recognized globally as a multi-trillion dollar industry over the last 10 years. As for the Malaysian e-commerce, it is maneuvered rapid knowledge driven economy and ICT enablement. Furthermore, 6 out of 10 Malaysians preferred to buy flight tickets online, 58% Malaysian bought movie and performance tickets online while nearly quarters of Malaysian survey respondents utilized social media to look for promotion code while shopping on digital marketplaces (Mukhtar et al., 2016; Fathil Asri, 2015; Nelson Global Survey, 2014). This clearly shows that Malaysian consumers are accepting the existence of e-commerce with open arms especially due to the development of internet and technology. 

According to the Department of Statistics Malaysia (2016), it has been reported that age 15 and above using the internet was at 57% in 2013 while the percentage has increased by 14.1% to 71.1% in 2015 where most of them were using their mobile devices to surf the internet. Today, consumers be it adults or teenagers are actively making use of the internet, consequently contributing to the steady growth of the e-commerce. Unfortunately, Malaysian consumers are only willing to go digital using the latest technology if and only if they are shown a real evidence or positive development from other superior foreign countries (Che Mohd. Zulkifly, 2014). Although the e-commerce industry contributed to USD984 million the Malaysian revenue, there are still issues concerned by both businesses and consumers such as security and customer safety (Krishnan et al., 2017).

The level of internet security has been one of the fears to businesses and consumers to engage with e-commerce (Niranjanamurthy and Chahar, 2013). Generally, both parties want to protect themselves from such harms namely unauthorized access, uses, alteration and destruction. E-commerce security offers three essential component data security, network security and privacy of the customers. Furthermore, many businesses are updating their security system to prevent risks, consequently contributing to the efficient digital marketplaces. On the other hand, consumers are still doubting the digital marketplace due to their perceived risks involved (Muthaiyah et al., 2011). Thus, to ensure their security and privacy are protected, it is vital for consumers to enrich their knowledge on how to safeguard their highly confidential personal information and consumer rights.

Next, customer safety remains as the common issue be it in any activities (Cagaoan et al., 2014). E-commerce or digital marketplace is operated in global network internet which is entrusting. Henceforth, because confidentiality is listed as the requirement, it is also a must to keep it away from all kinds of threats. Moreover, customer awareness on digital marketplaces’ security is increased through the deployment of the Consumer Protection Act in 2007. Plus, the Consumer Protection (Electronic Trade Transactions) Regulation 2012 was introduced in 2013. These regulations that come with certain obligations to digital marketplace are implemented with aims to consumer’s confidence in making online transaction and shopping. Once these regulations are imposed, other than making the growth of the digital marketplace industry to spur, it is predicted that the people in Malaysia will be persuaded to access the e-commerce platform without hesitation.

GO-TO MARKET OPERATIONS AND EXECUTION

These days, social media such as YouTube, FaceBook and Instagram are not foreign to us. Social media can be helpful to us especially when we are about to buy something for the first time as it provides a platform where previous buyers could voice out their experiences or reviews of the purchased products. According to Nielsen (2007), the existence of social media not just allowing companies to promote their business to the society at large at such a low cost, but also aids in creating trust with the audience since there is a lack of trust among customers in most forms of advertisements. This consequently drive business companies to focus more on social media since it is gradually taking control of the brand reputation of companies (Kaplan & Haenlein, 2010). 

Social media platforms offer opportunities to build value-added content for customers and to monitor negative customer sentiment. On the other hand, there may also be potential harms where companies may be encountering enraged customers who are believed to be value destroyers instead of value creators (Verhoef, Beckers & van Doorn, 2013; Verhoef, Reinartz & Krafft, 2010). Hence, companies are striving on dealing with the social environment as it is with the traditional way companies pursued marketing. According to Verhoef et al. (2013), the effort of interacting with customers through social media may be exposing companies to a weaker control. Companies may be at worrying state as the risks of a lack of control is a lot larger especially for strong brands in particular. For example, there is a risk of customers who use the opportunities to tarnish the companies’ established brand value. Henceforth, companies should be extremely cautious in managing the activities pursued.  

There are a few ways implemented by firms to manage brand health with social media. Firstly, about 49% of the firms created value-added content or services for customers on social media platforms and forums. Furthermore, 44% of the firms supervised brand mentions and sentiments in social media forums and addressing negative messages directly. Next, around 25% of the studied firms recognized influential discussion forums and joining in discussions about the brand while the other 22% of the firms reached out to key online opinion leaders to serve as brand advocates. Finally, an amount of 14% hired a third-party service provider to manage brand interactions in social media and other online forums (Leeflang et al., 2013).

GOODS ARE FAULTY? WARRANTY!

Although e-commerce is still developing and maturing rapidly in Malaysia, there are a few areas that need to be focused on in dealing with consumer protection. Other than being scammed by unethical sellers, online buyers are actively expressing their concerns regarding the warranty of their purchased goods. In general, any user guides are attached to the products being sold and return or exchange policies are often posted on the merchant’s website. Consumers are advised to register with them and store any proof of payment be it receipt or bill with them should any events occur. 

 Nevertheless, the warrant claim process could be tiring for buyers as it took quite some time to settle, which could lead for months. On the contrary, from a study carried out by Mukhtar et al., (2016) stated that half of the consumers mentioned that the process of claiming warranty for a product bought online usually required less than 14 days to accomplish. This issue arises because of several factors. Other than the delays, consumers are always denied of warranty because of the dispute between the service centres and their respective brands, together with the lack of service centres in the buyer’s location. 

In other cases, warranty claims are often ignored due to the absence because purchasers do not acquire formal bills from the sellers. Furthermore, the negligence of the dealer to stamp or sign the warranty card may decline the purchaser’s rights. Plus, due to the component being phased out by the goods manufacturer despite the products are still under warranty, dealers are not able to cover any future warranty claims. The issue involving the product life-cycles and growth in outsourcing is evident when purchasers buy items belong to the computer industry. 

It is important for both purchaser and dealers need to be certain that the warranty card is stamped with a clear date of purchase. Consumers should always keep in mind to check the expiration date of the warranty and the conditions that may void coverage. Also, it is recommended for consumers to look for conditions that could prove expensive or inconvenient especially when buyers need to deliver a heavy purchase to a factory for service. Lastly, because the e-commerce in Malaysia is lagged behind approximately 3 to 5 years when compared to industries in the US (Mukhtar et al, 2016), both stores and brands should come up with a feasible solution to resolve their issues. 

CUSTOMERS WHO LOVE ONLINE SHOPPING: WHAT ARE OUR RIGHTS FOR FAIRER DIGITAL MARKETPLACES?

From the previous year, it was reported that e-commerce sales has reached up to the amount of 2.29 trillion (USD) globally and the amount is expected to climbed up to 4.49 trillion (USD), which would be double the existing value by 2021. Consumers from all walks of life for could buy or book anything online. For example, due to the booming of e-commerce in Pakistan, working women are doing most of their shopping online (The Tribune Express, 2018). We can see that e-commerce has change how the way people shop, offering customers more options apart from creating products and services accessible. 

Although this might seem interesting, 70% of online customers are feel that there still issues arising namely scams or fraud whenever they are making online transactions when purchasing goods over the internet (The Express Tribune, 2018). Some people still disapprove the idea of online shopping as they fear unexpected and dishonest costs, illegal and fraudulent scams or unfair, unclear and confusing business practices. Consequently, the digital economy could be experiencing a significant impediment in further development if consumers do not trust businesses. It is no use for companies to serve so many choices on such a convenient scale never seen if the customers feel discouraged from using the advanced technology. 

Hence, there is an obligation to consider a customer perspective to the policy framework because it is vital to gain trust in e-commerce as compared to the traditional way of business. A few steps have been implemented to combat this issue which include developing supportive financial services regulations, provide import and export regulations as well as establish and regulate e-commerce establishments. Furthermore, when customers are provided with a strong, safe and secure internet access across the country, customers shall feel safe and confident when online shopping. Plus, business companies should address clear terms and conditions, fair pricing and good redress procedures as growth on the supply-side of the digital market presupposes consumer trust on the demand-side of the market. Business companies, especially in Malaysia, need to have a strong e-commerce policy which benefits both parties where the business can be safeguarded while at the same time focusing on the customers.