Etsy stock falls 8% on fears of large amounts of counterfeits being sold on its platform

The stock fell 8% today after a report from a analyst claimed that up to 5% of the companies listings could be counterfeit or infringe on someones intellectual property. I am not surprised that there are counterfeits on the site, I am only surprised investors did not know. I have covered Etsy long before Wall Street got a interested in it. Between the three major eCommerce sites: Amazon, eBay and Etsy, I believe that Etsy is the leader when it comes to intellectual property infringement.

Why? Because the companies main sellers are people who make hand crafted goods. Many of these hand crafted goods feature copyright images from other companies. You can find many listings with Pokemon, Mario, Disney figures, Superman and many more famous brands. It is interesting. Now we have two large companies public, Alibaba and Etsy, and both companies are highly dependent on counterfeits. Some even claim that Etsy is the king, far above the counterfeits on Alibaba, and even I agree. 
I pointed out long ago that Alibaba is to dependent on counterfeits and that them going public is just a way to dump stock on investors. Is Etsy doing the same? Here are just some pictures of counterfeits in from a simple search. I will use the most valuable brands for this example.

Here is a “hand crafted” t-shirt using Apple’s trademark and Starbucks:

apple counterfeit etsycounterfeit starbucks etsy

Hand made lighters using Louis Vuitton and Gucci IP:

counterfeit Louis Vuitton and Gucci etsy

Using Nike’s trademark to sell socks featuring a Bible verse:

counterfeit nike etsy

Someone may think that is real, and that Nike is endorsing a religion. I can make post after post featuring counterfeits on Etsy. I believe that the company is to reliant on fakes and that their slogan that they sell hand crafted goods is leading to sellers making fake goods. Some sellers do not know what they are doing, and some are. Etsy will need to spend tons of money to clean up its platform, but then their stock will sink even lower due to less sales, and more spending to fight counterfeits.



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