Counterfeiting refers to when malicious marketers create and start selling a fake copy of your original product. This is an illegal practice that some mischievous Amazon sellers employ to steal the profits of legitimate sellers and suppliers. As a result, Amazon has come up with an item-level tracing service to fight the counterfeiters. In this article, you’ll learn everything you need to know about the Amazon Transparency code program.
How The Transparency Code Program Works
The Transparency code program allows you to get rid of counterfeiters who are hurting your brand. Once you join the program, you receive a sequence of Transparency codes which have a Data Matrix 2D barcode.
So, you can place the codes on each unit you sell on Amazon or any other online platform. Each of your items on Amazon will then have a unique code. Amazon will always know that the code belongs to your brand because each of the codes can be traced back to your brand.
If Amazon notices a shipment on the platform from a brand that is already enrolled in the program, but doesn’t have a Transparency code, it takes action. Amazon will start investigating the seller who processed the shipment and destroy his or her inventory. You will have to pay for the codes depending on the number of products in your inventory.
In order to increase efficiency and avoid incurring stickering costs, smart Amazon sellers partner with third-party labeling companies. These companies print their codes directly on their packaging.
Sellers cannot use the program as a vendor management system to cut out resellers on the marketplace. Doing so is violating the program’s terms and regulations.
Who Should Enroll?
Before the Transparency program was launched, several brands suffered devastating counterfeit problems. Amazon invites interested brands to the program and issues them Transparency codes. This makes it difficult for counterfeiters or malicious sellers to pass off their own units as legit products.
Hairgenics and Beard Head are some of the reputable brands that have managed to salvage their products through the Transparency program. Paying for Transparency codes is a worthy investment because Amazon is a very popular online marketplace.
The Future Of The Transparency Program
Through the program, Amazon has proven that policing counterfeit items on online platforms is a possibility. But, implementing anti-counterfeiting systems can only work if popular online retailers such as Etsy, Shopify and eBay were to get on board. If these retailers were to cooperate, they would join forces to strengthen the protections against inauthentic products.
Unfortunately, many online retailers are not so likely to cooperate with Amazon as they consider Amazon the ultimate nemesis. So, without the cooperation that Amazon is anticipating, it will have to speed up its efforts to educate consumers/online shoppers on Transparency.
Online shoppers can utilize the unique Transparency codes to verify the authenticity of the products they purchase. As an online shopper, you have to use the Transparency app to scan the codes to know more about the origin of a product. However, Amazon already scans each product to verify it before it reaches shoppers.
Counterfeit is an illegal practice that causes brands a nightmare. Since 2017, Amazon launched its Transparency code program to curb the growing number of malicious sellers on its platform. So far, several brands have received invitations to join the program as Amazon keeps ramping up the adoption of it.