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SellerBites Branding

Lululemon is suing Costco because dupes are too good

By SellerBites
July 11, 2025


Amazon’s Prime Day chaos is so real, even the office crowd’s getting roped in.

Corporate employees in NYC got a Slack ping asking them to “volunteer” at a Fresh warehouse—picking groceries, packing boxes, and handing out snacks. It’s optional, sure.

But when white-collar teams are packing fruit in Red Hook, you know Prime Day is pushing limits.

  • Lululemon sues Costco over too good dupes 🧘‍♀️
  • Walmart Marketplace is 2025’s sleeper hit 💼
  • Seller uses stranger’s address to dodge returns 😳
  • Pair your brand with the right influencers 🔗

HOT TOPIC

In a newly filed federal lawsuit, Lululemon is suing Costco, accusing the warehouse giant of selling infringing knockoffs under its Kirkland brand.

According to Retail Dive, Lululemon isn’t just arguing confusion—they’re claiming the issue is that people know these are dupes… and don’t care. #LululemonDupes

💡 Consumers aren't confused

Dupes are undermining their brand by making consumers believe cheaper alternatives are just as good as the original. And thanks to TikTok and viral reviews, the dupe economy is thriving. 👀

According to First Insight, consumers aren’t being misled—they’re being strategic:

  • 70% of shoppers earning $150K+ are more likely to try a product if it’s marketed as a dupe of a premium brand.
  • Consumers care less about labels and more about value—balancing quality, price, and experience.
  • Costco’s “source ambiguity” (some Kirkland items are actually made by big-name brands) adds to the blur.

🧵 Can Lululemon untangle this?

The brand’s ask: a jury trial, a permanent injunction, and damages. But there’s a catch, Costco isn’t the only one riding the dupe wave.

Even The Washington Post ran with it:

“Is that hoodie a Lululemon or a Costco dupe? No one has to know but you.”

Lululemon may be fighting Costco in court—but it’s fighting internet culture in real life.

TOGETHER WITH WALMART MARKETPLACE

Selling on Walmart Marketplace is one of 2025’s smartest investments 

For eCommerce brands looking to diversify their sales and expand their footprint, there’s no better time to join Walmart Marketplace. Right now, Walmart’s New-Seller Savings event is offering new sellers up to $75K in incentives, which includes up to 75% off base referral fees and generous credits toward advertising and fulfillment.*  

Walmart is one of the world's most recognizable brands with over 255 million customers and members shopping at Walmart online and in-store around the world each week. New-Seller Savings run from sign up to January 31, 2026, so don’t wait—the faster you start, the more opportunity you’ll have to save. 
To take advantage of this unprecedented offer and the endless opportunities on Walmart.com.

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BITES OF THE WEEK

Seller hijacked a stranger's address to dodge return fees

A San Jose woman didn’t sign up to run a return center, but Amazon’s marketplace had other plans.

ABC7 News reported that she found herself on the wrong end of a shady Amazon return scheme. For over a year, she received hundreds of boxes—all containing car seat covers she never ordered.

🎩 Black-hat level: Expert

The culprit? A China-based seller named Liusandedian, who slapped a random U.S. address on their return labels.

Here’s how the scam works:

  • The seller avoids paying for Amazon-required prepaid international return shipping.
  • Customers eat the cost (sometimes $100+) to return faulty items—and still don’t get refunded.
  • Instead of going back to the seller, returns land on this woman’s porch.
  • Amazon support allegedly told her to “just donate” the junk.

The result: a driveway full of boxes, frustrated customers, and one exhausted woman wondering why she’s running a free warehouse.

⚖️ When profit trumps ethics

International sellers must either provide a valid U.S. return address, offer a returnless refund, or supply a pre-paid return label. Skipping all three? That’s suspension-worthy.

Luckily, after media pressure, Amazon finally stepped in to clear the packages and promised to crack down. A little late, but we’ll take it.

How to match your brand with influencers

The TikTok ban may be looming, but sellers aren’t backing off just yet.

According to Helium 10, Amazon and TikTok Shop sellers are still racking up solid ROI, especially when they team up with nano and micro-influencers.

🏆 How to win with creators

  • Start with a goal. Know what you're aiming for—brand awareness, TikTok Shop clicks, or Amazon conversions. Your goal shapes your creator picks and how you structure each deal.
  • Use the right tools. Skip the hashtag scroll. Use tools to filter creators by niche, engagement rate, and audience fit—zero guesswork.
  • Vet before you bet. 12%+ engagement is a great start for nano creators, but dig deeper. Is their content consistent? Does their tone match your brand? Do their followers look like your customers?
  • Pitch with purpose. Influencers are swamped with cold DMs. Keep yours short, specific, and personal. Spell out what you want, what you’re offering, and how to move forward.

💡 Start small, scale smart

Don’t throw five-figure budgets at TikTok just yet. Start with 2–3 creators, test different messages and formats, then scale what works. And remember—many creators are cross-platform, so if TikTok goes offline, your partnerships don’t have to.

Author : SellerBites

Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.


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