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A village north of Auckland has become caught in the middle of an overseas dropshipping scam, with regular customers falling victim and buying duped products marketed as “local” and “boutique”.
Alana Silk, owner-operator of Two Boutique in Matakana Village, said 12 customers had travelled to her store last week inquiringabout a specific jumper that had never been sold there.
“They were all very shocked ... Most of them travelled to Matakana especially to try it on,” Silk said.
Confusion around the three-stripe sweater’s existence wasn’t an isolated case; 30 different patrons had travelled to Two Boutique in three weeks searching for items they’d supposedly seen online, Silk said.
“There is no physical address for the ‘shop’, but the Google algorithm is sending them to me.”
Complaints from Two Boutique and Matakana Boutique over the deception have been laid with the Commerce Commission.
Dropshipping is an online business model where retailers partner with a third-party supplier that controls the inventory. When a customer buys an item, order details are forwarded to the supplier, who handles its production and delivery.
AI-generated images like the two above are used to make the website appear as a legitimate Matakana boutique. Photo / Supplied
Suppliers are usually based in countries where clothing can be produced for far less cost at a much lower quality, while retailers can be rooted anywhere.
The website, mimicking a local establishment, even duped the mother-in-law of Matakana Village’s marketing and communications manager.
“It’s the first time she’s ever ordered anything online on her own because it looked so good,” Tom Klockseth said.
The frustration was most felt by Matakana Boutique owner Amy Hope, whose accommodation business shares the same name as the online store.
The only difference with Hope’s website is her .nz domain and the absence of AI-generated imagery that is used to promote the fake products and fictional shop.
“The website is styled to appear as if it’s a local, boutique clothing store – and looks like it could even be part of our accommodation business,” Hope said.
Amy Hope is the owner of the real Matakana Boutique. Photo / Supplied
“Every day, I receive calls – mostly from women aged 50 and up – asking about clothing they’ve seen on Facebook.
“They’ve clicked through ads on Facebook or Instagram, believing they were buying from a local business, and felt good about supporting what they assumed was a New Zealand business.
“But in reality, they’ve unknowingly ordered from an offshore site, often receiving poor-quality goods (if they arrive at all), with no way to return or get support – and then they call me.”
Hope recounted a customer contacting her recently to return a dropshipped item as the quality was “bad and not what was shown on the website”.
Scammers have increasingly begun creating websites that imitate legitimate New Zealand clothing boutiques, taking advantage of areas and regions that are usually famed for their artisan appeal.
The stores use elaborate backstories and names such as Tauranga Boutique, Ivory Auckland, Iconic Wellington and Taupo Trends to deceive unassuming shoppers into believing they’re locally owned.
The majority of complaints related to the product’s characteristics (54), place of origin (34), material difference (32), refunds (30) and quality (23).
Beyond creating brand confusion, Hope said the existence of these stores underscored “the vulnerability of both small New Zealand businesses and everyday consumers”.
“It’s a reminder of how easily offshore companies can undermine the trust and integrity that local businesses work hard to build.”
Both Silk and Hope had filed complaints with the Commerce Commission for false representation, but since the online stores aren’t registered in New Zealand, little can be done to enforce compliance.