![]() But do it right."Īmazon's obsessive focus on pleasing consumers with discounts and service has come at the expense of brands like Forearm Forklift. It's that there is, in my opinion, a lot of pressure put on folks at Amazon to increase sales, increase sales, increase sales. "If Jeff Bezos knew exactly what was happening to us, he'd do the right thing," he said. Lopreiato, an Army veteran and father of two middle-school daughters, said he felt compelled to tell his story. Since began reporting on Amazon's budding counterfeit issue in May, we've spoken with dozens of merchants that have narratives similar to Lopreiato's, but very few are willing to speak on the record out of fear of retribution from Amazon. Analysts at Pacific Crest Securities, in their earnings preview, called Amazon "one of the most disruptive forces in retail and technology today."Ĭonversations with merchants elicit a very different reaction. Heading into the Seattle-based company's third-quarter earnings report Thursday, investor focus is on Amazon Web Services, Prime membership growth and additional investments in supply chain and fulfillment. The stock has climbed 37 percent over the last 12 months making Amazon the world's fourth-most valuable company, and 89 percent of analysts tracked by FactSet say shareholders should buy more. The counterfeit problem, in particular, goes largely undiscussed by CEO Jeff Bezos and ignored by investors and analysts. "We're competing with people who are stealing our brand, stealing our pictures and stealing our intellectual property," Lopreiato said in an interview last week from his 20,000-square foot warehouse in Baldwin Park, about 20 miles east of Los Angeles.Īmazon's growing dominance in commerce brings with it plenty of collateral damage. Meanwhile, Lopreiato bears the costs of workers' compensation, product quality control, commercial insurance, mortgage payments and patent management fees all so counterfeiters can act as freeloaders. But nothing has come close to replicating the success of his flagship Forearm Forklift. Lopreiato has diversified his product line, adding a harness for the shoulders, a strap that goes over a single shoulder and straps for carrying boxes. Retailers stopped placing orders because they were finding what appeared to be the same thing online for much cheaper. Annual revenue in 2008 topped $4 million and has since plunged 30 percent. The company is down to 21 full-time employees from 52 at its peak and recorded less than $500 in profit last year. "It's almost like winning the lottery if they choose our item."įorearm Forklift is hanging on by a thread. "It just keeps funneling business to the knockoffs," said Lopreiato, 48, whose wife Sophia also works at the company and traveled with him to New York. When "Good Morning America" viewers go online to buy a set, which retails between $20 and $25, odds are they'll be purchasing someone else's product. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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