Walmart Details Efforts to Crack Down on Counterfeit Sellers

Walmart says it is making efforts to rid its online marketplace of counterfeit sellers.

“While counterfeits are estimated to represent a tiny minority of the products sold on marketplaces, it is an issue that plagues all retail marketplaces,” the retail giant wrote in a Tuesday (July 22) blog post.

“These fraudulent sellers — who grow savvier, faking credentials and dodging enforcement — erode trust, not just in the companies who run these marketplaces, but in the thousands of large and small sellers who act with integrity and seek only to bring value and assortment to those who shop with us.”

Walmart says its anti-counterfeit measures include vetting sellers before onboarding them, which include verifying their identity and businesses. The company says it also removes listings and sellers in violation as needed, and provides owners with brand protection tools that lets them flag offending items.

“These systems are continually enhanced and strengthened to protect consumers from the latest threats facing every open marketplace,” the company said. “When issues arise, our dedicated Trust & Safety team acts swiftly to investigate and resolve issues, alongside the many sellers who act with integrity on our site every day.”

As covered here last month, the impact of eCommerce fraud is real. A recent report from Amazon’s anti-fraud division noted that the company has, in the last five years, filed more than 200 civil suits against fraudsters. The resulting settlements and judgments added up to $180 million, with more than 65 people going to prison.

“In 2025, eCommerce crime isn’t monolithic,” PYMNTS wrote. “It’s a mosaic of threats, each tailored to the operational rhythms of different verticals.”

For example, retailers in the fashion sector have to deal with things like friendly fraud and false chargebacks from customers who claim a product wasn’t delivered or was returned, when in fact it wasn’t. The industry’s high transaction volume, coupled with liberal return policies and frequent promotions, has sown a fertile landscape for abuse.

“Meanwhile, consumer electronics sellers face an altogether different problem: SKU inflation,” that report continued. “Here, fraudsters can manipulate product listings by inflating reviews, boosting visibility for counterfeit or low-quality goods.”

And in the beauty sector, the problem extends beyond counterfeit goods to the problem of return abuse. Scammers sometimes order expensive skincare products, replace the contents with lookalike substitutes, or even just water, and ship them back for a full refund.