Defect Increase Analysis: Misbranded ASINs and Online Returns Centre

Our analysis identified two primary contributors to the rise in defects. Firstly, an increase in detection from the Online Returns Centre accounts for approximately 20ppm. Secondly, defects stemming from misbranded ASINs contribute around 44ppm. During Q2'23, misbranded ASINs were responsible for 32% of all defects, compared to 21% in Q2'22 and 18% in Q1'23. This surge in misbranding is largely attributed to a limited number of brands, with five out of the top ten brands experiencing misbranding issues. The spike in misbranded brands during Q2'23 can be attributed to a combination of factors: increased consumer demand, particularly for popular cosmetic brands like Beauty of Joseon, Thrive Causemetics, and National Mah Jongg League, and a lack of oversight on the issue, which was only escalated to ABP for takedown in late June and July.