Online retail on the Darknet

Online retail Online retail on the Darknet

Published on 20.08.2019 by Markus Peter, Business Consultant, PostLogistics

The Darknet is the playground of criminals. To enter the Darknet, users need a special software package – for example the TOR browser. This conceals the connexion between websites and users via different servers. Without such a program, it is impossible to access the Darknet.

In the media, the Darknet is generally closely linked with criminal organisations. Nevertheless, there are also lawful applications for this “concealed” part of the Internet. In countries where the Internet is censored, the Darknet provides activists and critics of the regime with the possibility of disseminating information and working in concert. It is sometimes also used by journalists to communicate safely with these activists and to retrieve information.

The Darknet also underpins technological innovations, such as payment systems we have long wanted banks to introduce in everyday life. Cryptocurrencies are also very popular on the Darknet.

Illustration of Darknet iceberg: based on an illustration by GData

Marketplaces just like on the normal Internet

One of the first marketplaces on the Darknet was Silk Road. This was a platform where visitors could buy everything that wasn’t available from other marketplaces be it drugs, weapons, medicines, prohibited pornography, tutorials, hosting services or packages with stolen credit card data. Large marketplaces on the Darknet have listed approximately 100,000 services from different retailers. Researchers at Carnegie Mellon University reveals that between 300,000 and 600,000 US dollars exchange hands in this way every day.

User reviews submitted by buyers after acquiring a product are particularly important on these marketplaces. They create the trust that is a necessary element of a business relationship. Because fraud cannot be sanctioned due to the anonymity of the users, positive reviews are essential for doing business. All evaluations are listed on the trader profiles, and the number of negative and positive comments is provided for comparison. Suppliers can also purchase so-called sticky lists. This means they always appear among the first search results.

Competition between Darknet marketplaces is handled in such a professional manner that some of them even have affiliate programmes or customer sponsorship provisions in their marketing offer. Marketplaces even go so far as to employ their own marketing and PR officers.

How companies are damaged

It is important for manufacturers to know how their products are presented on the Darknet because counterfeit products not only lead to a fall in revenue, they can also damage a brand image due to poor product quality. Furthermore, corresponding user data, passwords and databases are available on the Darknet, which can cause considerable damage.

Entering the Darknet unintentionally?

Nobody enters the Darknet by chance. Browsers such as Chrome and Firefox are incapable of providing access. What’s more, these illegal websites are not listed by search engines.

Markus Peter, Business Consultant, PostLogistics

Markus Peter is a Digital Commerce Business Consultant at Swiss Post’s Digital Commerce Competence Center, and he also lectures at a number of universities of applied sciences.

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