American e-commerce giant Amazon.com announced that it has shut down one of its third-party stores in China due to media reports that the store was selling fake cosmetic products.

Saying it was taking the issue extremely seriously and that it implements zero tolerance policy on third-party stores selling fake goods. Amazon further stated that it has officially closed down the store involved in the issue.

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The shutting down of the said store came after China Central Television (CCTV) ran an investigative report that showed a third-party vendor selling luxury perfumes and cosmetics that were actually counterfeit.

CCTV was able to trace the owner of the third-party store who at first claimed he was selling authentic cosmetics only to admit that he bought his products not from the makers of the cosmetics but from another Chinese store.

"We will refund shoppers who purchased the products sold by the third-party store in question," Amazon China said on its Weibo account.

It also assured its customers that it will further intensify the process of screening and regulating its Chinese sellers to ensure that only authentic goods are sold on its website.

Amazon and several other e-commerce website are working doubly hard to gain substantial share of China's multi-billion and growing e-commerce industry.

At present, Amazon holds only 1.6 percent of the market, which is dominated by Alibaba, with more than 45 percent market share. Alibaba also had its share of issues about third-party vendors selling fake goods on its website.

Another e-commerce site in China, Dangdang, is embroiled in controversy after CCTV also ran a story about a third-party vendor selling fake products on Dangdang. The Chinese website holds about 1.5% share of China's e-commerce market.