Why drive to the drugstore when you can have your shampoo delivered to your front door, for a fraction of the price? In this economy, who doesn’t want to save a few bucks on gas and basic goods. Therein lies the appeal of online marketplaces – better prices, no lines, no hassle.
Online shopping has revolutionized the way we acquire goods, offering unparalleled convenience with a simple click of a button. The marketplace has shifted predominantly to online retailers in recent years, providing an array of products at the tip of our fingers. However, the ease and speed of this digital convenience comes at a cost, as an alarming number of online retailers are peddling stolen goods taken directly from brick-and-mortar stores.
It’s fair to assume that online retailers are vetted and trustworthy, given the fact that we willingly store our personal and financial information on these platforms. Yet, the reality is unsettling – a substantial portion of these seemingly legitimate online marketplaces harbor sellers dealing in stolen merchandise. Just last year, 41 people were arrested in New York after a three-year investigation uncovered $3.8 million of stolen goods from Bloomingdales and Duane Reade were being sold on eBay. In 2021, an Atlanta based father and daughter duo were sentenced to federal prison for selling more than $6 million of stolen goods on Amazon, Walmart & Sears. And in California, a man was arrested in the biggest organized retail crime bust in California history for selling $8 million in stolen goods in 2020. Indeed the phenomenon is international, with British retailers voicing concerns about increases in organized retail crime and other theft.
The anonymity of the online marketplace makes it nearly impossible to distinguish between reputable sellers and those engaged in organized crime trafficking in stolen goods.
Videos of smash and grabs and stories of shoplifting have saturated media nationwide, instilling fear in both consumers and retailers alike. In a surprising twist, these videos are often promoted by organized crime rings in an active effort to recruit teenagers through social media platforms such as TikTok. While retailer complaints about the explosion of thefts are overblown, we can reduce organized retail theft by cutting off the avenue for resale via online marketplaces like Amazon and eBay.
Many online platforms already utilize verification systems to highlight reputable storefronts. It begs the question – why not extend this practice to identify and promote verified, legitimate sellers? In 2022, the Prosecutors Alliance of California sponsored SB 301 that echoed the INFORM Act, passed by Congress, which took effect in June 2023 and requires online retailers to identify high-volume third-party sellers in an effort to prevent online sales of stolen goods and deter organized retail theft.
As a trailblazer of legislative initiatives, California has an opportunity to lead the charge in combating retail theft. By implementing a verification system for online sellers we can establish an extensive process to verify online sellers. Requiring online platforms to implement compulsory training for all online retailers, enables them to qualify for a verification checkmark. An extensive verification process would allow consumers to make informed decisions about who they’re purchasing from, allowing them confidence that they are supporting legitimate businesses rather than fueling the retail theft epidemic.
By pursuing smart strategies to combat retail theft, California can become a model for the rest of the country and the world to follow – so you can buy your shampoo, and legally use it too.
Cristine DeBerry is the Founder & Executive Director of the Prosecutors Alliance of California
