The Amazon Transparency Program: What It Does, Who Can Sign Up, And How To Get Started
As counterfeiting continues to be a problem in eCommerce, Amazon has announced several measures in recent years to combat it. Last year, the marketplace blocked 10 billion — yes, billion —listings for suspected counterfeiting, as the pandemic seemed to spur a new wave of crooks hoping to cash in on the online shopping boom. However, when progress is being made, there is still much more to be done.
Brand security must be a primary priority for today's Amazon retailers. The consequences of a hijacked listing and a low-cost counterfeit of your best-selling item are just too costly to your bottom line and brand reputation. While there is no one-size-fits-all solution at the moment, Amazon's Brand Registry, particularly its Amazon Transparency program, is an excellent place to start.
What is the Amazon Transparency Program?
The Amazon Transparency program is a product serialization solution that allows Amazon to validate each item before sending it to consumers. Launched in 2017, Transparency was created to address the growing problem of counterfeit goods being sold on Amazon.
How Does the Transparency Program Work?
For products enrolled in the Transparency program, Amazon checks each unit to verify it has a unique serial number printed on the packaging. This "Transparency code" authenticates the item is genuine, not a counterfeit copy. Amazon scans these codes when inventory enters their fulfillment centers and again before the order ships out to the customer.
If a third-party seller attempts to sell inauthentic goods, Amazon will detect the lack of a valid Transparency code and block the sale. This prevents counterfeits from reaching consumers while ensuring customers receive the real product they ordered.
In addition to Amazon's checks, customers can also scan the Transparency code on their packages to independently verify authenticity. The scan will indicate if the product is genuine or potentially counterfeit.
Benefits of the Transparency Program
The Transparency program offers several key benefits:
- Protects high-risk products prone to counterfeiting like electronics and luxury goods
- Prevents revenue loss and brand damage from counterfeit sales
- Reassures customers they are receiving authentic goods
Joining the Transparency Program
To join Transparency, sellers must:
- Prove brand ownership through Amazon Brand Registry or trademarks
- Obtain a Global Trade Item Number (GTIN) like a UPC code
- Commit to applying unique Transparency codes to every product unit
Amazon has streamlined the signup process to be fast and simple. Sellers have access to handy tools for generating and managing Transparency codes as well.
Is Transparency Right for You?
While beneficial for many, Transparency codes do come with additional costs and production requirements. The program tends to provide the most value for established brands facing regular counterfeit issues. New sellers or those with few code-worthy products may find the investment less worthwhile.
Ultimately, registering your top-selling and high-risk items for Transparency can help instill customer trust and protect your brand reputation. The codes offer assurance to buyers while blocking counterfeiters - a win-win for both your business and your customers.
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FAQs
What are the main benefits of Amazon Transparency?
The main benefits are protecting high-risk products prone to counterfeiting, preventing revenue loss from fake sales, and reassuring customers they receive authentic goods.
What requirements do I need to join Amazon Transparency?
To join, you must prove brand ownership, obtain a GTIN like a UPC code, and commit to applying unique Transparency codes to every product unit.
How much do Transparency codes cost?
Transparency codes cost 1-5 cents per unit. Volume discounts are available. You can also work with approved Transparency Service Providers.
Can Transparency codes replace UPC barcodes?
No, UPCs identify the product itself while Transparency codes authenticate each individual unit.
Is Transparency worthwhile for new sellers?
The program tends to benefit established brands facing regular counterfeiting the most. New sellers may find the investment less beneficial.
Can I enroll my entire product catalog in Transparency?
No, Amazon currently only allows enrolling certain ASINs in Transparency, not a seller's whole catalog.
How do customers benefit from Transparency codes?
Customers can scan Transparency codes on their packages to independently verify the products are genuine, not counterfeits.