What is Amazon Transparency Program? | Bizistech Guide

If you are an Amazon seller, you might have heard about a counterfeit problem which is quite normal.

Amazon is working with thousands of brands and selling billions of products, and of course, not all of them are authentic. They are Counterfeit products.

What is the Amazon transparency program?

As a brand, your relationship with your customer is really important. When customers buy something online, they expect that the item will be authentic, but sometimes it’s not.

To solve this problem, Amazon launched a program named “Amazon transparency” in 2017.

Amazon transparency is a product serialization service that identifies the individual unit and proactively prevents customers from getting counterfeits products.

What are Counterfeit products?

Many third-party sellers manufacture cheap or copy versions of the original product and sell at lower prices; this is known as Counterfeit products.

Traditionally these sellers target those products that make a higher margin and display their listing with them. In many cases, they use Amazon fulfillment service (FBA) to quickly sell their low-quality, low-price products. 

Over the past few years, Amazon has recognized this issue and has taken several initiatives to solve this problem. Last year Amazon took action and blocked 10 billion listings that were suspected of counterfeiting.  

Today, Amazon gives their customers and sellers equal protection and starts programs like Brand registry and specifically Amazon Transparency that aims to protect the seller brand.

How Does the Amazon Transparency Program Work?

amazon transparency program working

In the Amazon transparency program, the brand owner selects the products they want to enroll in that program and shares the product information with Amazon. In return, Amazon will use that information to generate a transparency code from their secured software. Each code will be unique and must be added to each manufactured product unit.

Now, if any third-party seller tries to sell your enrolled products on your listing, they will have to provide a valid transparency code to sell them. Even if a seller is fulfilling its order by itself (FBM), Amazon will scan the transparency code before shipment and check whether the product is authentic so that only the correct or genuine products will be shipped to customers.

If the right code is not there, the product will not be shipped, and the product will be classified as a counterfeit product. This means that no third-party seller can now sell your product cheap copies on your listing. 

After purchasing the product, even the customer can check the product authenticity by the transparency app.

What is a Transparency App?

The transparency app allows the customer to scan the product and verify its authenticity. 

what is transparency app | Amazon transparency app

If the app displays the green checkmark, it means its authentic, and if it displays a red mark, it means it’s not. It displays additional product information like product manufacturing date, location, videos, or promotions.

This app is compatible with both iOS and Android.

How to get enrolled in the Amazon transparency program?

To get enrolled in this program, there are a few requirements that are,

  1. You must have a registered brand on Amazon to verify yourself as a brand owner of the product.
  2. You need a GTIN (Global Trade Item Number), a UPC (Universal product code), or an EAN (European Article Number) barcode on your product.
  3. You should be able to apply a transparency barcode to every unit you manufacture.

If you meet all these requirements, click “Get started” on Amazon’s Transparency Page.

What does the Amazon transparency program cost?

Publicly Amazon has not stated any price for the Amazon transparency program, but it has been that brands pay between $0.0.1 to $0.05 per code based on volume.

Tier #1: Less than 1MM codes – price per code $0.05

Tier #2: 1MM to 10 MM codes – price per code $0.03

Tier #3: Greater than 10MM codes – price per code $0.01

Here is the catch the more products you will enroll in this program, the less Amazon will charge you.

In which marketplaces Amazon transparency program is available?

Currently, the Amazon transparency program is available in 8 marketplaces that are:

  • United States
  • Canada
  • India
  • France
  • Germany
  • The United Kingdom
  • Italy
  • Spain

Pros and Cons of Amazon transparency program

Pros

  1. Keep counterfeiters’ sellers away from your listing.
  2. Protects your brand reputation from hijackers and copycat sellers.
  3. Help you earn more

Cons

  1. This program only works on your listing; if any seller tries to sell your enrolled product outside of your listing, it doesn’t work.
  2. The program is not free; it will cost you an additional labeling fee.
  3. You need you meet all requirements if you want to enroll in this program.

FAQs

Conclusion

Is the program worth It?

At the end of the article, I will say that this is not the all-end solution to protect your brand or product, but it protects some of the black hat competition.

Especially on Amazon, the world’s largest marketplace, you need an extra layer of protection for your brand.

So, if you have any experience with the Amazon transparency program, share it with us and let us know in the comment section.

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