THE WHAT? Fake online reviews will be behind some US$3.96 billion of online fashion sales in the US and US$800 million of beauty and personal care buys, according to a study conducted by CHEQ and the University of Baltimore.
THE DETAILS Reviews – whether real or fake, influence some US$98.4 billion of US online fashion sales in 2021, with at least 89 percent of fashion buyers relying on consumer reviews to buy goods and services.
At least 4 percent of all reviews are fake, the study found, meaning that they directly influence e-commerce sales to the tune of US$28 billion. By sectors, this amounts to US$3.96 billion of fashion sales and US$800 million of beauty and personal care purchases.
THE WHY? Professor Roberto Cavazos, Executive in Residence in the University of Baltimore’s Merrick School of Business, explains, “Given the size of the market, the ease of entry and the immediate economic benefits, bad actors remain highly incentivized to engage in fake reviews. This complex market is adversely influencing our purchases, causing significant economic detriment, creating real revenue losses for businesses, and severely diminishing trust in online purchasing.”