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