Chinese Counterfeiting Issue on Amazon Is Worsening (2026)
More and more Chinese manufacturers on Amazon counterfeit other sellers’ products. With the second annual Prime Day that occurred two weeks ago, Amazon has gained big this year, in terms of notoriety and margins. This event gives Amazon Prime members access to new deals about every five minutes. Therefore, there was a large flux of sales this day that strongly promoted Amazon and its sellers.
Nonetheless, this isn’t that popular among some sellers. Many sellers are facing huge competition, extremely fierce competition from competitors that aren’t always loyal according to them. They talk about the Chinese counterfeits, getting more and more numerous on Amazon.
The Way of Business of Chinese Companies
Indeed, sellers witness a lot of Chinese manufacturers offering the same product as theirs but at a much lower price. They are growing very fast and become a real trouble for other people businesses. Not only are niche brands counterfeited, such as kitchen tools or cosmetics, but also well-known brands such as Michael Kors or Canada Goose. Usually, using the method of hijacked listings, which is defined as randomly making appearing a list of competitors selling the same product but at a lower price. Consumers then tend to choose the products appearing on this list since they are identical but cheaper. Most of these sellers are China based and when asked how they could sell their products so cheap, they answered “it a secret”. Moreover, these online stores are claimed cheating about their reviews: critics say that these sellers offer discount on their products against a positive review. Very shortly, unknown brands come with an extreme amount of good reviews that encourage other consumers to buy their products.
By 2025, the problem had scaled further. Amazon’s Brand Registry had enrolled over 700,000 brands globally, yet counterfeit removal requests still numbered in the millions annually. In the cosmetics category specifically, counterfeit listings have become a serious concern: fake skincare and makeup products not only steal revenue but can harm consumers physically. We have seen this first-hand working with clients like Clarins and Novexpert, where unauthorized Amazon third-party sellers were undercutting official pricing while selling products of uncertain origin. Brands that want to sell cosmetics in China need to factor in brand protection from day one.
Anti-Counterfeiting Policy
To fight against the counterfeiting and sellers who do not respect the rules, Amazon set up an anti-counterfeiting policy but it doesn’t really work because fraudsters are very fast and relaunch under a new store name when they are removed. Because of this lack of efficiency, more and more sellers on Amazon criticize the company for not dealing properly with these counterfeiters. Regarding this issue, Amazon’s strategy is more reactive than proactive. There are so many stores and so many shoppers, it is quite difficult for them to control tightly everything, that’s why they react when there is obviously a counterfeiter but cannot prevent a counterfeiter from launching their products online. But still, genuine sellers want more checks to identify counterfeits.
Recently, Amazon even eased the subscription and the freight transport for Chinese manufacturers. The aim is to generate more trade and subsequently more profit. Since last year, Amazon’s market value hasn’t ceased to get bigger.
In 2025, Amazon introduced new AI-based detection tools to flag suspected counterfeit listings before they go live. The Transparency program, which assigns unique barcodes to products for consumer verification, expanded to more categories including cosmetics. Still, enforcement remains inconsistent. Sellers report that a removed listing can reappear under a slightly different store name within days.
Xiaohongshu and the UGC Counterfeiting Problem
The counterfeiting issue is not limited to Amazon. On Xiaohongshu (Little Red Book), which had over 300 million registered users by early 2026, fake cosmetics products circulate through user-generated content posts. Sellers use authentic-looking unboxing videos and paid reviews to promote counterfeit goods. For brands entering the Chinese market, this creates a dual problem: losing sales to fakes on Amazon internationally while also fighting unauthorized resellers promoting knockoffs through Chinese social media. A proper Xiaohongshu marketing strategy includes monitoring brand mentions and flagging fake product posts as a standard step in any China market entry plan.
What Brands Can Do
Finally, the losses encountered by the other sellers are sales losses, but also time lost trying to fight themselves against the hijacked listings or fake reviews. Therefore, when promoting your products, it is important to find a way to protect your copyright and increase the plus-value aspects that counterfeiters can’t copy.
- Register your brand with Amazon Brand Registry before launching any product
- Use Amazon Transparency codes on every unit to let buyers verify authenticity
- Monitor your listings daily or use a third-party brand protection tool
- Document all counterfeit activity to build a legal case if needed
- Control your authorized reseller network tightly, both on Amazon and on Chinese platforms
FAQ: What Brands Ask About Amaz
Looking for help? Our cosmetics marketing in China service can support your brand’s entry into China.
