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All the Information you Require on the Amazon Transparency Program

Every brand can't help but feel afraid when they hear the word counterfeit. It indicates that someone is out there taking your revenue...

Amazon Transparency Program

Every brand can't help but feel afraid when they hear the word counterfeit. It indicates that someone is out there taking your revenues and damaging our brand's reputation by selling inexpensive replicas of your products.


Since brands have existed, counterfeits have been a significant issue, and Amazon takes this seriously. Every year, counterfeit goods on Amazon cost the online retailer over $323 billion.


Because of Amazon's first-sale concept, which permits third-party sellers to lawfully resale branded items in their original condition, manufacturers have shipped counterfeit goods on the platform on multiple occasions without anybody noticing.


Selling phony, low-quality goods not only creates a bad consumer experience but also damages Amazon's reputation and the brand.


Consequently, Amazon created the Amazon Transparency Program to further safeguard brands on its website and guarantee that buyers obtain authentic products. This is a brief overview of everything you need know about the program:


Quick Guide

What is the Amazon Openness initiative?

How does the Transparency Program at Amazon operate?

For FBM merchants, how does the Amazon Transparency Program operate?

How can I sign up for Amazon Transparency Program?

Advantages of the Transparency Program at Amazon

Final Thoughts: Guard your Brand


What is the Amazon Openness initiative?

Before a product is dispatched, it can be verified using the product serialization service called Amazon Transparency Program.


The initiative was created in 2017 with the intention of identifying and stopping the delivery of fake goods to consumers.


Amazon started the transparency program and tested it as a trial on their product line. It gradually opened it up to third-party retailers after it started to see some success there.


The Amazon Transparency initiative is currently accessible in a number of nations, including the UK, Germany, Canada, France, India, Australia, Spain, and the United States. In the future, the corporation intends to introduce the concept in other marks.


The program is intended for brand owners and independent sellers. For example, in the event that a third-party vendor attempts to “hijack” a product and sell fake goods, their products will be blocked from delivery and placed on a blacklist.


How does the Transparency Program at Amazon operate?

Transparency systematically eliminates the risk of buyers being exposed to counterfeit goods through an intricate system of product labeling. 


Brands get a set of distinctive T-shaped 2D barcodes when they register for the Amazon Transparency program. The product's package is then affixed with these codes. The Transparency code is distinct to each individual item, unlike UPCs or GTINs, which are brand-specific and typically thought to be not very useful.


Amazon will scan the barcode on every item before shipping it to a customer in order to confirm its legitimacy. Every item without a barcode or that fails an authenticity test will be closely examined and flagged as possibly being fake.


Customers can quickly cross-reference and validate Transparency-protected products they have bought online by using the Transparency smartphone app that Amazon also offers. When consumers scan the product's QR code, the app indicates if the code is legitimate or invalid with a red cross.


Through the Transparency app, brands can additionally furnish customers with crucial unit-level details like the manufacturing date and location, in addition to other comprehensive product details.


The official FAQ states that transparency guarantees total centralization, creating distinctive barcodes that consumers can scan to confirm the legitimacy of the goods. This procedure stops dishonest third parties from manipulating codes.


In order to facilitate cross-referencing and verification of the codes for future use, the Transparency software also maintains track of each code generated in tandem with the products.


For FBM merchants, how does the Amazon Transparency Program operate?

Merchants can choose between Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA) for self-order fulfillment when it comes to completing orders. Sellers can stockpile their products in Amazon's inventory when they employ FBA. After a buyer buys an FBA-fulfilled product, Amazon will package and send the item on their behalf.


For each transparency-enabled item you sell, Amazon will request a unique transparency code from you as an FBM seller using the Amazon Transparency program.


In this manner, Amazon can guarantee that consumers receive only genuine units. The codes you use for your FBM products must be sent to Amazon, even though they will produce them for you.


Keep in mind that a distinct transparency code must be placed to the product packaging for every FBM item that is sent.


What is the price of the Amazon Transparency program?

While Amazon does not provide its pricing structure for the Amazon Transparency program, depending on the quantity of transparency-enabled items, advertisers should budget between $0.01 and $0.05 per barcode.

Assuming you have 1,000 pieces of your goods, the most you could be required to spend to get it authenticated would be about $50.


If you sell expensive, luxury goods, it is advised that you enroll in this program to guard against losses from fakes. You can gradually extend the transparency program to your other items based on your needs and financial constraints.


When utilizing the Transparency program, you also need to budget for the expense of labeling. Units and/or things can have sticker labels put to them with transparency codes. Even while your supplier can complete the labeling as the product is being manufactured, this will typically result in a higher application cost.


Pro Tip: It is a good idea to use printers that utilize Transparency barcodes throughout the packing process to apply the codes yourself.


How can I sign up for Amazon Transparency Program?

Sellers must fulfill the requirements laid out by Amazon in order to apply for the Amazon Transparency program. These prerequisites consist of:


·       It is necessary for you to be the rightful owner of the brand and to provide evidence of this.

·       You must apply a Global Trade Item Number (GTIN), such as an EAN or UPC barcode, to your products and display it.

·       Every product you make needs to be able to use distinct Transparency codes.


Go to Amazon's Transparency page and select the "Get Started" button to get started if you can fulfill all the requirements listed above.


You must complete this brief form. After finishing, select "Request more information." to get further details about your enrollment from Amazon.


You can choose which goods you want to use Transparency codes for authentication if your application is approved.


Selecting your most expensive products first is advised rather than enrolling every item in your inventory.


Advantages of the Transparency Program at Amazon

The initiative benefits consumers as well as brands. Here are a few justifications for thinking about it:


Increase Your Profits

Products produced under the names of other businesses, frequently of lower quality, and marketed to unwary consumers are known as counterfeit goods. In the US, counterfeit goods are a major issue. The Department of Homeland Security reports that in 2020, federal agents recovered counterfeit items valued at over $7 billion. This poses a serious issue for businesses that sell branded goods. Since they take sales from reputable businesses, counterfeiters are direct rivals.


Hijackers are unable to sell your products because they do not have the special codes that Amazon generates for units that are enabled for transparency.


Should another vendor attempt to market your merchandise without being able to furnish the exclusive transparency code, that item will be identified as counterfeit and will not be shipped to buyers.


You may therefore boost your sales by locating and removing these counterfeit vendors, since customers will be forced to choose you.


Cut Down on the Harm Caused by Counterfeiters

Scammers that want to interfere with internet enterprises are called counterfeiters. They make listings for goods they don't produce and attempt to extort money from buyers by offering these goods for sale. Typically, they make money by offering those imitations for less or by selling them to distributors who resell the products to final customers.


Your company is at risk because these counterfeiters undercut you on pricing and steal all of your potential clients. Furthermore, they harm your brand's reputation since consumers believe you are selling knockoffs. Not to mention that your company may have to close while this is looked into further.


Avoids negative evaluations

It goes without saying that clients who obtain phony goods will be dissatisfied. Writing a bad review on your product website or social media handle is the last thing you want people to do. Given that 84% of consumers trust internet reviews, this might seriously damage the perception of your brand.For an easier time conducting business on Amazon, the Transparency program can shield your company from all of these calamities and preserve its reputation.


Final Thoughts: Guard your Brand

The scourge of the online retail sector is counterfeiters. They undercut you on pricing, harm the reputation of your company, and result in lost sales income. Registering your products for the Amazon Transparency program is one of the finest ways to safeguard yourself against falling victim to counterfeit schemes. By ensuring that your clients receive the genuine goods they anticipate, you can maintain their satisfaction.

Complete the enrollment requirements for the Transparency program if you are a brand-registered vendor to begin safeguarding your brand's reputation from counterfeiters. 


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