What is the Amazon Transparency Program?

Sellers on Amazon probably know about the Amazon Transparency Program. Launched in 2017, the service is designed to allow verification of goods prior to shipping. It is essentially a serialization service for products that exists to prevent counterfeit items from being sold on the platform. 

The transparency program is available in the United States, England, Germany, Canada, Australia, France, Spain, Italy, and India. Both brand owners and third-party sellers can use this service. If any third-party sellers attempts to sell counterfeit goods on Amazon, the transparency program identifies those infringing goods, blacklists them, and blocks delivery to the consumer. 

Exactly how does Amazon’s transparency program work? Brands and third-party sellers who sign up with the program are provided 2D barcodes in a T-shape that are fixed to the packing of a given product. Interesting, indeed. These codes are unique for each individual item they are attached to. The implementation of this labeling system with unique codes for each product allows for the systematic elimination of potentially counterfeit goods getting sold.

Verifying Product Authenticity | Amazon Transparency Program Benefits

Amazon scans the barcode on the item prior to shipping it out to the customer, thereby verifying the authenticity. If the barcode is not attached to the product, or if the authenticity test results in a failure for some reason, Amazon will mark the product as possibly counterfeit. Additionally, buyers can use the Transparency mobile app to conduct their own verification of goods they purchase on the platform. On the app, if the product is verified it will display a green checkmark, if not, users will see a red cross. What’s more, sellers can share the manufacturing location and date with buyers on the Transparency app, if they wish.

What’s the actual protection offered by the Amazon Transparency Program? With the use of unique barcodes, customers can ensure the authenticity of the products they buy. Not only this, it disrupts the ability for sellers with malicious intent to manipulate the codes, preventing counterfeit. Even further, the program maintains a record of all unique codes, which can be verified and/or referenced at a later date, if needed. 

Unique Barcodes Protect Sellers and Buyers

For any seller using Fulfillment by Amazon (FBA), when you sign up for the Amazon Transparency Program, the platform will require a unique code for all transparency-enabled products you’ll sell. While Amazon gives sellers the codes, sellers need to inform Amazon which codes they are applying to each product. 

Of course, brands and third-party sellers will want to consider the cost of the program. The cost varies between $0.01 and $0.05 per each unique barcode. Which is fairly reasonable. For those selling high cost or luxury goods, the Transparency Program can be a good option to prevent loss. Certainly, the program can be used for any type of product, depending on sellers’ budget. The labeling cost is another factor. The unique codes may be fixed to products with sticker labels, either during the manufacturing or packaging process. 

What’s the process of enrollment for Amazon’s Transparency Program? You’ll have to be the owner of a brand or business and be able to prove that. Amazon also requires sellers to display a Global Trade Item Number (GTIN) on their items. And, you’ll have to have the ability to apply the Transparency does on each item. 

Should I Use the Amazon Transparency Program?

Why go forward with the Transparency program? Because counterfeiting is a huge, costly problem that many sellers face! Having a unique transparency code will allow a seller to avoid all of the issues related to competitors who sell counterfeit goods of lower quality to unsuspecting customers. This way, you can potentially increase your sales and make more money, because the products you offer are verifiably authentic and legitimate. Moreover, you avoid having your reputation damaged by an ill-intentioned counterfeiter. Such outcomes as bad reviews, negative feedback, and other customer dissatisfaction can also be completely avoided with the Transparency Program. 

Our team at Stockman & Poropat, PLLC has a deep knowledge of everything related to selling on Amazon. If you ever encounter any issues as an Amazon seller, contact us for a free consultation! We can help you find solutions to a broad array of complicated situations, should you run into any while selling online. Let us get to work for you! 

Up next we will be discussing Walmart Sellers Accounts.