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Amazon Launches Transparency Badge to Help Combat Counterfeit Products

Ryan Faist

Ryan Faist, Channel Key

February 27, 2023

Amazon has introduced a Transparency badge to confirm the authenticity of products sold on the platform. This is the latest step Amazon has taken to combat the growing problem of counterfeiters and unauthorized resellers. The new badge is part of Amazon Transparency, a program that helps brands protect their products from counterfeiting and other unauthorized activity. Amazon Transparency provides the following key benefits:

  • Verify Product Authenticity
    Ensure that only authentic units are shipped to customers. Whether fulfilled by Amazon or shipped directly by selling partners, products cannot be listed on Amazon or shipped without valid Transparency codes.
  • Engage with Customers
    Connect with customers post-purchase, no matter where they bought your product. The Amazon Shopping app and the Transparency app both allow customers to scan Transparency codes to confirm authenticity and access content you provide.
  • Optimize Your Supply Chain
    Gain additional insights on your items at the batch or lot level, helping you identify supply chain or other issues, diagnose their root cause, implement solutions, and improve products with minimal disruption to your business.

How Amazon Transparency Works

Amazon Transparency enables brands to assign a unique code to each unit of their products.  The code is often a 2D barcode or QR code that can be printed on the product or its packaging.

When a customer buys a product with a Transparency code, they can scan the code using a mobile app to verify that the product is authentic. The app will display information about the item, including its origin, manufacturing date, and other details. If the code is not recognized or has already been used, the app will alert the customer that the product may be counterfeit or unauthorized.

Amazon Transparency provides a way for brands to track their products through the supply chain. It makes it easy to monitor distribution to prevent unauthorized sellers from offering fake or inferior versions. Transparency also allows brands to identify and investigate any suspicious activity and take appropriate action to protect their brand reputation and customer trust.

How to Enroll in Amazon Transparency

To enroll in Amazon Transparency, follow these simple steps:

  1. Register for Amazon Brand Registry: You must have a registered trademark with the relevant authorities and enroll your brand in Amazon Brand Registry. This process allows you to have control over your brand’s product listings and intellectual property.
  2. Enroll in Amazon Transparency: Once you are enrolled in Amazon Brand Registry, you can enroll in the Transparency program. You will need to provide your brand’s information, including your trademark registration number, product information, and the number of Transparency codes you need.
  3. Print Transparency Labels: After enrolling in the Transparency program, you can print the Transparency labels for your products. The labels contain a unique code that customers can scan to verify the authenticity of your products.
  4. Affix Transparency Labels to Your Products: Affix the Transparency labels to your products before sending them to Amazon fulfillment centers.
  5. Monitor Transparency Codes: You can use the Transparency portal to track the distribution of your products and monitor the use of the Transparency codes.

Once enrolled in Amazon Transparency, you can protect your brand from counterfeiting and provide your customers with the confidence that they are receiving genuine products.

Why Counterfeiting is Bad for Brands and Customers

Counterfeiting is a significant problem on Amazon. It affects both consumers and legitimate sellers on the platform. Counterfeiting refers to the practice of producing and selling fake or unauthorized copies of branded products. This illegal practice undermines consumer trust in the authenticity and quality of the products sold on the platform. Here are some of the key problems of counterfeiting on Amazon:

Brand Reputation: Counterfeit products damage the reputation of legitimate brands, as customers may receive poor-quality or unsafe products that are falsely labeled as authentic. This can lead to a loss of trust and loyalty among customers, which can impact sales and revenue.

Consumer Safety: Counterfeit products may not undergo the same safety testing and quality control as authentic products. Consumers who unknowingly purchase counterfeit products may be at risk of harm, such as health problems or injuries.

Revenue Loss: Counterfeiting can result in significant revenue loss for brands. Counterfeit products are often sold at a lower price than authentic products. This can result in a loss of sales and market share.

Intellectual Property Infringement: Counterfeit products often violate intellectual property rights, including trademarks, copyrights, and patents. This can lead to legal disputes and financial damages for brands.

Channel Key Takeaway:

Counterfeit products and unauthorized resellers are an unfortunate reality of ecommerce.  Amazon has taken numerous steps to combat counterfeiting on its platform, including the implementation of Amazon Transparency and its related badge. This program helps to protect intellectual property and ensure that customers receive authentic products. It is especially valuable for brands looking to protect their reputation and prevent counterfeit products from damaging their business. For customers, it ensures that they receive the products they expect and can trust the authenticity of the products they purchase on Amazon.

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