Wednesday March 22, 2017

Amazon Expands Counterfeit Removal Program

Amazon has expanded it's counterfeit removal program by enlisting the help of third party companies that sell products on Amazon. Starting in April, any third party brand that registers their logo and intellectual property with Amazon will become empowered to flag counterfeit products for immediate removal from the e-commerce website. The brand registry is completely free of cost and has been in a testing phase for awhile. Amazon benefits from the relationship with a commission on third party sales while also selling fulfillment and advertising services to third parties.

Third party sellers have reaped the benefits of selling on Amazon. At least 100,000 third party sellers have generated $100,000 in sales on the platform. I hope this gets rid of some of the fake accounts that spring up when a new product comes out. They pretend to sell the same item as Amazon and the legitimate third party sellers for 25% less. It's a scam that needs some form of moderation on Amazon's part also.

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Shoppers, brands or Amazon itself can flag counterfeit goods via the brand registry, which the company developed in 2016. Amazon is also offering brands a program called "Transparency," which lets them label packages with a code so shoppers can cross-check their purchase against official information. Faricy said efforts against counterfeit products are at an early stage. "I don’t think it’s the kind of thing where you ever feel like there’s a clear ending," he said. "It’s a journey."