The goal of the Amazon Transparency program is to combat counterfeiting. Selling defective and fake products can damage your seller’s reputation, result in account suspension, and give your consumers an awful experience.

One issue affecting the eCommerce sector is counterfeiting, and the Amazon marketplace is no exception. As a brand owner, you must take precautions to protect your name and goods from being copied. Due to the past sales of fake goods on its marketplace, Amazon faced harsh criticism from the media.

 

Registered sellers can now use the Amazon Transparency program to safeguard their brands and enhance customer satisfaction.

 

What is the Amazon Transparency?

A serialization service called Amazon Transparency Program is used to check the authenticity of products before they are delivered to customers. The transparency initiative assists registered brand sellers in defending their marks against the actions of counterfeiters. Amazon first tested the concept on its product line as a pilot project, and when it saw success, it expanded the program to include third-party sellers.

The following nations are the only ones where Amazon Transparency is offered:

USA, UK, Spain, Italy, Australia, India, France, Canada, and Germany. 

Amazon will extend the effort to other world regions as more third-party sellers continue to experience success with the program.

 

How does Amazon Transparency work?

Transparency is similar to how significant companies give serial numbers to every product they sell (i.e., every iPhone has a unique serial number).

When you ship products into the Fulfillment Center using Transparency, Amazon will check for this code to verify the authenticity and won’t accept any units without it.

When you make a sale, Amazon will additionally check the code just before the item ships out.

Your consumers can scan the code on an order when it gets to them to check the information and confirm the legitimacy. If there is a green check mark, it means the goods are genuine; otherwise, it means the product is a replica. Customers can then contact the Transparency team to report a possible fake.

As long as they adhere to the style outlined above, sellers can still include additional identifiers and unit-level information on the print label. This implies that the print label can display the UPC, FNSKU, and details such as the date of manufacture, the contents, and the materials employed. Many sellers were waiting for Amazon to provide them the option to link to a brand page or an Amazon storefront as of the time of writing.

 

How effective is Transparency for FBM sellers?

There are two selling options on the Amazon marketplace: Fulfillment by Amazon (FBA) and self-order fulfillment through Fulfillment by Merchant (FBM). Sellers can store their goods in Amazon’s inventory using the latter.

When customers submit orders, Amazon is in charge of packaging and sending the ordered goods to the customers.

For each item enabled for Transparency, Amazon will need FBM sellers to supply special codes. With this strategy, Amazon ensures that only genuine items are sent to customers. Even though Amazon produces the codes for your products, you, the seller, must give the codes for your FBM products before Amazon completes the sale process. The packaging for each FBM product has the transparency codes attached.

 

How to Enroll in the Amazon Transparency Program?

It’s pretty simple to sign up for the Amazon Transparency Program. You can get started by visiting Amazon’s page for its transparency program. Here are the requirements you must fulfill in the meantime to join:

  • By participating in the Amazon Brand Registry with a registered trademark, you must prove that you are the brand owner.
  • Either a UPC or EAN code must be present on your products.
  • Every product unit you produce must be able to accept an Amazon Transparency code.

 

What is the cost of the Amazon Transparency program?

You can anticipate paying between $0.01 and $0.05 per barcode even though Amazon hasn’t explicitly told vendors what they must pay to join the program. The number of units with Transparency enabled will determine the cost you would pay. For instance, if you have 1,000 units of merchandise waiting to be verified, you should budget about $50.

You should sign up for the program if you sell expensive goods or luxury items because doing so will assist you in avoiding any losses brought on by counterfeiters. In addition, you can gradually expand the Transparency program to include your other things as your firm grows and adds additional offerings based on your requirements and budget.

The cost of placing barcode labels on your goods or units is another item you should consider. This can be made more accessible by asking your manufacturers or suppliers to print the labels on the goods during production. This strategy will cost more money but also save you time.

Instead, imagine you lack the resources to compensate your manufacturers or suppliers for using specific transparency codes during production. If so, you can attach the barcodes manually during packaging using the necessary printers. You’ll save more money if you choose the latter.

 

Pros of the Transparency Program

Increase your profits

Most of the time, fake and low-quality goods are offered to unsuspecting customers under the names of other businesses. Since they lack the specific transparency codes that Amazon developed for you, counterfeiters will find it challenging to sell your products now that the transparency program has been implemented.

Amazon will mark a product as fake if someone tries to sell it but cannot supply the special codes assigned to it. As a result, the business won’t send the product to customers. So removing counterfeiters from your company will automatically increase your sales and bottom line.

Protect the products that are at risk

Counterfeiting is a concern that is likely to affect sellers of top-selling goods. Products, including clothing, gadgets, well-known toys, and watches, are at risk. A black hat vendor might be tempted to market a fake version of these goods in order to damage your brand’s reputation. However, the black hat merchant won’t be able to accomplish their goal thanks to Transparency because they won’t have access to the unique codes for your goods.

Avoid the potential damage that comes from fakes

The program aids in preventing the harm that counterfeiters may cause to your brand. For example, if your clients complain that your company sells fake goods, Amazon may remove your listing. Additionally, you lose money the longer your listing is removed from the Amazon marketplace.

Avoids negative reviews

Customers will be upset if they pay for fraudulent goods and then receive them. A customer writing a negative review about your brand on your product page and social media is the last thing you want as a seller who wants to generate money. Since the majority of consumers believe internet reviews, if managed improperly, could damage your brand’s reputation. Your brand has been protected, though, since the program was introduced.

 

Drawbacks to Transparency

Additional steps in the shipping process

If you are a new product, this Amazon program is an extra step that can take up some of your time. In addition, since each code is distinct, the automated labeling process for your products may be difficult and time-consuming.

Paid service

The transparency program has a price; it is not offered for free. You are applying transparency labels to your items costing between one and five cents each. The number of your orders dramatically influences the cost. You will also have to pay other expenses before exporting your goods. Printing and attaching the label to your merchandise will also cost money.

Eligibility criteria

The Amazon transparency program has several requirements before you may join, just like previous Amazon opt-in initiatives. Before submitting your application to join the program, you, as a seller, must work toward fulfilling the requirements.

Transparency is only for your listings

The transparency program only applies to your listings is another critical disadvantage. If counterfeiters try to sell your product elsewhere, you will need to file an IP complaint.

 

Should I sign up for Amazon Transparency?

Transparency, like most Amazon services, is more suitable for some sellers than others. If you already have a Brand Registry account and a trademark on your goods, it’s something to think about. In other words, if your product is in the middle of its life cycle and is valuable enough to warrant protection.

 

Conclusion

Amazon Transparency is a commendable effort on the part of Amazon to safeguard legitimate brands and lessen its counterfeiting woes. If you wish to safeguard your brand and fend off those bothersome counterfeiters, you would (and should) follow the prerequisites for signing up.

 

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