Amazon Transparency: Protect Your Brand from Counterfeits
Amazon Transparency: Protect Your Brand from Counterfeits
December 12, 2023December 19th, 2023
In the modern world of ecommerce, where billions of transactions occur daily, trust has become one of the most valuable assets. The statistics speak for themselves: 81% of consumers prefer to make purchases from sellers they trust.
While you work diligently to earn trust in your products and brand, companies distributing cheap imitations of your products significantly undermine it. Such actions not only deprive you of deserved profit but also jeopardize your reputation as a trustworthy seller.
Especially vulnerable are online marketplaces. In the mass transactions, it's challenging for marketplaces to maintain complete control over all sellers and products. In 2018, around 40% of products purchased on popular online platforms turned out to be counterfeit.
Amazon, being one of the largest online platforms, is not ignoring the issue. The company actively invests in combating the spread of counterfeit products on its platform. One of its successful investments is the Amazon Transparency program. In today's article, we will explain what this program is, how it works, and how it can protect your products from counterfeiting.
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1. What Is the Amazon Transparency Program?
Amazon Transparency is a product serialization service introduced by Amazon in 2017 in response to the growing issue of counterfeiting. It enables the tracking of product authenticity on the Amazon platform and actively prevents attempts to sell counterfeit goods. Counterfeit products are blocked, and violators face appropriate sanctions.
During the initial years of the program, Amazon actively tested it on its own products. After positive results, the company expanded its availability to third-party sellers. Today, Amazon Transparency has successfully verified the authenticity of over 900 million units of products from 33,000 registered brands.
The program is available to sellers in the United States, Germany, France, Canada, Australia, Spain, India, Italy, and the United Kingdom. It's important to note that the list of countries is not final. Amazon is working to expand the geography of the Amazon Transparency program, aiming to provide its benefits to brands worldwide.
2. How Does Amazon Transparency Work?
The main goal of Amazon Transparency is to ensure the authenticity of products. To achieve this goal, each unit of a product registered in the program is assigned a unique identifier in the form of a special barcode. This code is applied to the product, guaranteeing its authenticity.
Sellers using FBA and FBM can take advantage of Amazon Transparency. In the case of FBA, an Amazon employee checks the Transparency code during the acceptance of the product at the warehouse to confirm its compliance with the registered data. If it is not found in the database or if it is determined that the product has already been sold before, it is not allowed to be shipped. In the case of confirming counterfeiting, the company has the right to destroy the available product, block, or remove the violator's account.
For FBM sellers, Amazon generates codes, but sellers must print and apply the label to the packaged product themselves. Before shipping, the seller also needs to provide Amazon with the transparency codes for each unit of the product being shipped. This measure ensures that the customer receives an authentic product.
On their part, customers scan the special barcode using the Amazon Shopping mobile app or the Transparency app. A green checkmark confirms the authenticity of the product, while a red cross indicates its potential counterfeit status.
3. What Benefits Will the Brand Receive From the Amazon Transparency Program?
The main advantage of Amazon Transparency is the protection of your brand from counterfeits. By assigning unique barcodes to each unit of the product, the program creates a barrier for potential counterfeiters.
If your product is part of the program, Amazon will scan the Transparency code before shipment and verify its authenticity. This eliminates the likelihood of selling counterfeit copies of your product. Even if a third-party seller attempts to send a counterfeit product to Amazon, the company can detect and remove it.
Fulfillment-Box Lifehack: If a competitor is selling your product through FBM (FBA listing without a code for it is closed), you can take out their product and file a complaint with Amazon, providing evidence of the lack of 'Transparency Code'. After 1-2 such complaints, Amazon will block the seller for selling counterfeit goods.
The Amazon Transparency program ensures the safety and reliability of purchases from you. Customers will have confidence that the ordered product meets their expectations. In turn, you will be able to gain undeniable benefits for your business, including:
3.1 Gain the trust of customers
By using Transparency codes Amazon, you provide your customers with the assurance that they are purchasing an authentic product, not a cheap imitation. Confidence in the authenticity of the products will strengthen trust in your brand.
3.2 Stand out among competitors
Participation in the Amazon Transparency program will be your competitive advantage. Unique codes confirming the authenticity of products distinguish the brand among many others in the market. This creates a positive perception of your brand and contributes to the formation of a reputation as a reliable supplier.
3.3 Reduce the number of negative reviews
Protection against counterfeits reduces the likelihood of disappointed customers and, consequently, decreases the number of negative reviews. Customers receive what they pay for, allowing you to maintain a positive reputation for your brand.
3.4 Improve your ranking in Amazon search results
Amazon takes into account various factors when determining the ranking of products. Primarily, this includes feedback from your customers. Satisfied customers who are pleased with the quality of the product are more likely to leave positive reviews, directly impacting your position in search results.
3.5 Increase sales
Buyers who are convinced of the authenticity of the product are more likely to make a purchase. Amazon Transparency will help you draw even more attention to your brand and increase sales.
4. How Much Does the Amazon Transparency Program Cost?
Amazon Transparency provides reliable protection for your brand against counterfeits, but it comes at a cost. To obtain a unique code for each unit within a SKU, you will need to pay between 1 to 5 cents per code. However, when comparing these costs to the potential losses and risks associated with counterfeit products, they are often considered justified.
Investing in the Amazon Transparency program can be seen as an investment in the development of your brand. The case of Hairgenics illustrates this point, as the company lost $700,000 within a year due to counterfeit products. However, with Amazon Transparency, these losses were successfully turned into increased sales . This case demonstrates that investing in brand protection can have a significant impact on the success of your business.
Moreover, the program does not require you to purchase codes for all your products at once. Start by protecting your most valuable products or those more susceptible to counterfeiting. This allows you to concentrate efforts and resources on strategically important aspects of your business.
5. How Do I Become A Member of Amazon Transparency and How Can Fulfillment-Box Speed Up This Process?
The process of registering in the Amazon Transparency program is not complicated. However, before applying for participation, make sure that your brand meets the three main requirements of Amazon. These include:
Registration of the brand in Amazon Brand Registry
Availability of a global trade item number (GTIN, EAN, UPC, ISBN or others).
Ability to apply unique Transparency codes Amazon to your products.