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Four Ways Counterfeit Electronics Damage Revenue and Reputation: Soaring Warranty Costs

Our last blog post in this series illuminated how returns fraud can cut into electronic brands’ bottom line. In this post, we’ll examine the issue of soaring warranty costs. Many electronics component manufacturers know that counterfeits drive up warranty costs. Most don’t realize, however, that up to 30 percent of items returned for warranty repairs may contain counterfeit parts. The challenge is that many counterfeit items returned for warranty work are well-designed fakes. Identifying them takes training, time and effort. Include in the costs shipping, handling and time spent by service support personnel and the costs really add up. In fact, identifying fakes during the warranty repair process can sometimes cost more than the original product.

Solution: Item-level Serialization

Item-level serialization is a simple, cost-effective way to identify counterfeit parts. Item-level serialization allows manufacturers to quickly and easily track genuine parts every step of the way and weed out fakes. It can be deployed seamlessly across customer service departments, warranty and repair teams, internal investigators and even consumers. And our serialization tools can use almost any platform: website, text messaging, mobile app or call center—no special tools or equipment required. A simple, fool-proof inquiry can verify a legitimate part or identify a counterfeit almost instantly, saving you needless expense and hassle.

Next blog post: We’ll shine a light on how counterfeit electronics erode a brand’s reputation.


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