The Amazon Transparency Program is a service offered by Amazon to its sellers to verify the authenticity of products before they are shipped to end-users. Launched in 2017, the program helps registered brand sellers protect their brands from the activities of counterfeiters; a practice that has grown rapidly in recent years, not only on Amazon but on all existing marketplaces. Currently, Transparency is available in the United States, Canada, Germany, France, Italy, Spain, the United Kingdom, Japan, Australia, and India.
How does the Transparency Program work?
The program is based on a complex labeling system to ensure that only authentic units are sent to customers. When you join the program, you will be provided with a series of unique barcode labels, which you must attach to your product package. The codes are unique to each product, unlike Global Trade Item Numbers (GTIN) or Universal Product Codes (UPC), which sellers have found to be unreliable. Before shipping any item to customers, Amazon will verify the product’s authenticity by scanning the barcode. Any product that fails the authenticity test or lacks a barcode will be flagged as a potential counterfeit.
To simplify the process, Amazon has provided a Transparency mobile app that buyers can use to independently verify the authenticity of their purchased products. Once the buyer uses the app to scan the codes, the app will display a red cross if the code is invalid. Similarly, it will display a green checkmark if the code is valid and the product is authentic. Registered brands can also use this app to provide important information about their products to customers, such as manufacturing date, location, expiration date, and other sensitive details. The manufacturing date helps buyers determine if the product is still valid and has not expired.
FREQUENTLY ASKED QUESTIONS
As with any new program, it’s natural to have doubts as a seller about whether it’s worth enrolling or not. We’ll address some common questions to help you make the right decision.
1.- Can I enroll in the program if I’m selling through FBM (Fulfillment by Merchant)?
Whether you’re selling on Amazon as a vendor or FBA seller (where Amazon stores and ships your product), there’s no problem, as Amazon will handle placing the transparency code on your package. If you’re an FBM seller, meaning you store and directly ship to buyers, there’s also no issue. You simply need to attach the transparency code to each product. So, no problem.
2. – I’m selling on Amazon, not just in one country, but in all possible ones. Do I need to enroll my products in each country separately?
You don’t need to go country by country because the Transparency program is a global service. What you need to do is enroll in the program, define which products, correctly code them, and activate protection. Keep in mind that Amazon’s warehouse system is identical in any country. Transparency codes are valid worldwide.
3.- Do I have to enroll my entire catalog in the program?
The decision of which products to include in the program is up to the seller, and there’s no minimum requirement to include your entire inventory. Each product will have its Transparency code, so there’s no issue. However, the rule of 1 product = 1 unique code is mandatory. This means that if, for example, I have a code for Tablet X, all units of that Tablet X will carry the same Transparency code, and if that Tablet X comes in various sizes and/or colors, each type will need its unique code.
4.- What are the minimum requirements to enroll in the Transparency program?
There are three mandatory requirements for participating in the program:
a) Register your trademark with Amazon’s Brand Registry.
b) Have a GTIN for your product (an International Article Number) such as an ISBN, EAN, or UPC.
c) Have the capability to apply the unique Transparency program codes to each unit you manufacture.
5.- Does the Transparency program have a cost?
Indeed, the program has a cost. It’s a few cents per code, but for more information, contact support to inquire about the current price range as it has recently changed. If you’re selling as a seller, in Seller Central, for more information, go to Help – Brand Registry in Amazon – Transparency, a proactive solution for counterfeiting.
BENEFITS
It’s clear that the program has its advantages, and with careful consideration, certain categories like electronics, home products, etc., may be more suitable for enrollment. Brands like Xiaomi, Samsung, Apple, etc., already use it for all their products. Here are the main advantages of enrollment:
1.- Increase sales and consequently revenue.
Most counterfeit products are of low quality and are sold to unsuspecting consumers under reputable brands. Thanks to the program, counterfeiters will find it more difficult to impersonate your brand, leading to increased sales and better brand control.
2.- Protection of your at-risk products.
Counterfeiters target trending, popular products with a good reputation and high sales potential. Products like toys, clothing, electronics, watches, bags, accessories, etc., are excellent candidates for counterfeiting. This way, you protect your flagship products as well as your brand image.
3.- Prevention of damage caused by counterfeiters.
We’re not just talking about brand image, but also damage on Amazon’s platform. We all know that if a product consistently receives negative reviews, Amazon will block it or even remove it from listings if necessary. And be wary of comments – even if it’s explained that the negative review was about a counterfeit product, negative reviews still hold prominence, and users will focus on the negative and likely not make the purchase.
How much does the Amazon Transparency program cost?
Though it depends on various factors, you pay based on the number of units of product you enroll in the program. You can always expand the number of units and products without issue as you find it profitable for your brand. Another cost to consider is the price of applying barcode labels to your products/units. You can economize to some extent by
having your suppliers or manufacturers print the labels during the manufacturing phase. However, while this approach costs more, it saves time. Alternatively, if you don’t have the budget for your suppliers or manufacturers to apply unique codes during manufacturing, you can apply the barcodes yourself using suitable printers during the packaging process. This latter approach will save you more money.
In conclusion, the program is available to any manufacturing brand, but it’s obvious that it’s not accessible to all. Categories that use the program the most include electronics, fashion, toys, etc., which are higher-priced and recognized brands where damage to brand image is significant. Now, Amazon has launched an offer where they provide 20,000 free Transparency codes for a year for each new product registered in the program before December 31, 2023. So, if you’re considering it, here’s your opportunity to try it out.
For more information, here’s the link. If you have any doubts or need assistance, the Amazing team will be delighted to help you, as well as with any Amazon services you require. Email us at hola@amazingagency.io without any commitment, and we’ll get in touch as soon as possible. Alternatively, visit our website at amazingagency.io and use the contact form to reach out.
