I remember it pretty clearly, it was about 3 years ago. One of my friends showed me some fake Beats by Dre, and was bragging on how he sold 4 of them within a hour on eBay making about $400 in profit. Here I was just starting my own online business selling mobile accessories, and my friend with little to no effort made a lot of money, specially in profit. Marketing was all done on the DR’s budget, so all he had to do was list the counterfeit headphones online. He showed me the packaging and the headphones. It looked just like the real thing. The audio sound was close to the real thing, not bad enough for you to think they were fake or anything was wrong.
Below, is the real product, and a fake one. Tell me, as a first time buyer, can you tell me which is the real one, and if you did not know these were heavily counterfeited, would you suspect anything if you received one in the mail.
I meet up with him a few days later, and he told me his Amazon account was banned. If you did not know, Amazon does not allow 3rd party sellers to list Beats under New without approval. He said they suspected he may be selling fake items due to the fact he only sold these headphones and had no seller history. Those two factors are usually a sign they are fake. eBay was a different story.
On eBay, there is no single listing. Each seller makes their listing. My friend used the real retail packaging as the picture. He sold 22 on eBay before being banned, and 6 on Amazon. Of those sold, 1 was returned due to the buyer saying it was fake, and 1 was returned as the head phones broke within a few days. Netting a profit of around 50%, he took home around 2-2.5k in profit. Not bad for only having to list the item and ship it. I estimate it was less then 5 hours of work.
How much revenue will you make from selling counterfeit and fake Beats by Dre online?
Here is the break down of profit from selling on eBay. This is from around late 2011. Unfortunately, he never recorded the cost of goods sold. I remember it was around $40. These were the big headphones, as the picture above shows. The ear plug style headphones were usually less then $10.
While Dr. Dre may be the worlds first hip hop billionaire, he like any other company that owns intellectual property has to fight counterfeiters. Beats has recently filed a lawsuit against a few Chinese counterfeiters. Good luck on collecting that. Nike gave up a long time ago on trying to protect its property in China and get money from the counterfeiters. They now make their products in other countries such as Vietnam.