Protect Your Business from Counterfeits with Amazon Transparency Codes 

With over 1.9 million selling partners on Amazon, it shouldn’t come as a surprise that sales of counterfeit goods on the site are a legitimate concern. Yet the extent of this problem is quite staggering, and unfortunately, it has gotten worse in recent years – in 2020 alone, Amazon blocked 10 billion counterfeit listings. 

To combat this growing threat, Amazon launched its Transparency Codes Program in 2017. This service allows Amazon sellers with registered trademarks to apply unique identification codes to their products. The benefit of this service is verifying product authenticity with ease, and counterfeits can be weeded out – before they are even shipped. 

If you are concerned about counterfeits eating into your bottom line and reputation, keep reading to learn more about Amazon’s Transparency Codes program. We will discuss how the program works, the benefits for sellers and consumers, and how you can get started. 

What is the Amazon Transparency Codes Program? 

Amazon describes Transparency Codes as a “product serialization service that helps identify individual units and proactively prevent counterfeits from reaching customers.” In practical terms, this means sellers can register their products and receive unique 2D barcodes for every single unit.  

How Does it Work? 

Let’s take a look at the Transparency Codes Program process: 

  1. Brand Owner Registers Product(s). The Amazon seller enrolls the desired product or products in the Transparency Codes Program. To enroll, a brand owner must: 
    • Verify they are the brand owner through enrollment in Amazon Brand Registry with a registered trademark.
    • Have a Global Trade Item Number (GTIN) barcode, such as a UPC (Universal Product Code) for the enrolled product.
    • Be able to apply transparency codes to every manufactured unit.
  2. Product Units are Labeled Before Shipment. Orders fulfilled by Amazon FBA (Fulfillment by Amazon) are labeled with Transparency Codes at Amazon’s fulfillment centers. If you are a Fulfillment by Merchant (FBM) seller, Amazon will provide you with codes that you are responsible for printing and applying to products.
  3. Transparency Codes Verified During Order Fulfillment. Amazon FBA orders are verified by Amazon fulfillment teams. If they see an order with an enrolled ASIN (Amazon Standard Identification Number) but no transparency code, Amazon will not fulfill the order. If you are fulfilling an order as an FBM, you will be prompted to enter the transparency code’s digits. 
  4. Customer Verifies the Order. Amazon offers another layer of verification for Transparency Code orders: customers can opt to use Amazon’s Transparency app to scan the item’s barcode upon receipt. If it is authentic, the app will display a green check; if not, it will display a red ‘x.’ 

What Are the Benefits of This Program? 

The Transparency Codes program provides Amazon sellers with many benefits, such as: 

  • Improved Trust Among Customers. Since products are verified to be authentic, customers will have greater trust in your brand and know they can depend upon a high level of quality. Trust can make all the difference when turning a one-time customer into a loyal, repeat buyer. 
  • Greater Revenue. You won’t need to worry about losing out on sales due to counterfeit sellers on Amazon. Counterfeit orders will, at a minimum, be canceled, and at most, result in the seller’s account getting suspended. That means fewer counterfeit items to compete with and more hits to your product listing. 
  • Fewer Negative Reviews. Customers who receive counterfeit orders will often post a negative review on the authentic seller’s profile to share their disappointment with the item’s quality – or outright claim it is a counterfeit. With Transparency Codes, you can rest assured customers won’t be posting reviews for products that aren’t truly yours. 

How Much Does the Program Cost? 

Sellers are charged per code, generally ranging from $0.01 to $0.05 per code based on volume. An order of 1,000 items, for example, could cost anywhere between $10 and $50. 

Protect Your Business with Amazon Transparency Codes 

Is your business struggling with lost sales and negative reviews due to counterfeit items? We are here to help. Contact us today to learn more about Amazon Transparency Codes and hands-on assistance with the registration process. 

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