Walmart Marketplace Grapples with Surge in counterfeit goods, Lax Approval Processes
BENTONVILLE, Ark. – โฃSept. 21, 2025 โค- Walmart’s โonline marketplace is facing scrutiny โover a rise in counterfeit products and allegations โof insufficient vetting of sellers, according to a recent report by PYMNTS.com. The issue has prompted internal concerns about eroding customer trust and โขdamaging the reputation of legitimate vendors.
Former Walmart marketplaceโฃ investigator, Tiffany Jones, revealed that approval processes for newโค sellers became increasingly lenient. “Itโฃ got toโ a point โwhere they were just โขlike, ‘You know what? Just go ahead โand approve everybody,'” Jones said, describing directives from her managers. “They wanted that business, so they were willing to take a chance on it.”
Walmart acknowledged the problem in a July โblog post, stating that “fraudulent sellers – who grow โฃsavvier, faking credentialsโ and dodging enforcement – erode โขtrust not just in the companies who run these โmarketplaces, but in the thousands of largeโข and small sellers who act with integrity and seek only to bring value and assortment to those who shop with us.” โค
In a statement to PYMNTS, Walmart said,โค “Counterfeiters threaten brands and โขmarketplaces worldwide, undermining trust and integrity. At Walmart,โค we continuously strengthen our marketplace to protectโ customers and sellers.โ Even with over half a billion products on our platform, we take swift, โdecisive โaction โขto remove any counterfeit goods and bad actors who โfail to meet โour standards.”
The issue atโข Walmart reflects a โคbroader trend in โeCommerce fraud, which PYMNTS reported earlier this year is a “mosaic of threats, each tailored to the operational rhythms of different verticals.” Retailers in the fashion sector are especially vulnerable to “friendly fraud” and false chargebacks, while consumer electronics sellers are battling “SKU inflation” – the manipulation of product listings with inflated reviews to promote โcounterfeit or low-qualityโค goods.