Counterfeit sales comprise nearly 3.3% of global trade, totaling over $500 billion annually. Is your brand at risk? The Amazon Transparency program helps to protect sellers and customers from this widespread issue.
Highlights
- Brands enrolled in the program add unique transparency tags to their products, which are scanned before shipment.
- Each product unit receives a unique Transparency code, differentiating it from standard UPCs or GTINs.
- Units without a barcode or that fail the scan are checked for authenticity.
- FBM sellers must provide Amazon with Transparency codes for each unit, ensuring all shipped products are verified as authentic.
- The program typically costs between $0.01 and $0.05 per barcode, depending on the number of units.
Why We Wrote This?
We wrote this content to educate sellers about the Amazon transparency program designed to combat counterfeiting, a significant issue in e-commerce. Additionally, the blog can serve as a resource for boosting customer trust and satisfaction.
By explaining how the Transparency Program ensures product authenticity, sellers can communicate the added value to their customers, which can enhance their shopping experience and build brand loyalty.
So, in this guide, we’ll outline what this program is, how it works, how much it costs, and how to enroll in it.
What is Amazon Transparency Program?
Launched in 2017, the Transparency Program Amazon is a product serialization service that helps identify and prevent counterfeit products. Enrolled brands add transparency tags to their products, which are scanned before shipment and can be verified by customers for authenticity. In 2023 alone, Amazon seized 7 million counterfeit products.
How the Amazon Transparency Program Works?
Transparency is a product labeling system that stops counterfeits from reaching customers. Amazon gives companies special barcodes that prove their products are real. Companies must put these codes on every unit they make, even if they don’t sell them on Amazon.
These transparency codes differ from UPCs or GTINs because each unit has its unique code. For example, if you make 1,000 units, Amazon will give you 1,000 unique codes - one for each unit.
Before shipping an order, Amazon scans the unit’s barcode to ensure it’s real. If a unit doesn’t have a barcode or fails the scan, Amazon will check if it’s a counterfeit.
Amazon also has a transparent mobile app that lets customers check for real products. By scanning the code with a smartphone, the app shows a green check mark for valid codes and a red "X" for invalid ones.
How Does Transparency Work for Sellers Who Use FBM?
You can choose Amazon FBA or Amazon FBM when selling on Amazon. With FBA, Amazon stores your products, and when a customer orders, Amazon packs and ships them.
With FBM, you handle storage and shipping. You need to give Amazon a Transparency code for every unit you fulfill so they can verify it’s authentic. Amazon will create the codes, but you must tell them which ones you use for FBM orders.
Every FBM unit shipped needs its unique Transparency barcode on the packaging.
How the Transparency Program Benefits?
Guard Your Valuable Products
If you sell popular or high-value items, there's a chance someone might try to sell fake versions. This is common with electronics, clothing, watches, and toys. Transparency helps prevent this by using special codes that only you have. Amazon will mark your product as fake if someone tries to sell it without a valid code.
Avoid Problems from Counterfeits
Selling fake products can harm your Amazon brand's success. Counterfeiters might undercut your prices, costing you money. Plus, if a customer complains about a fake product, Amazon might temporarily shut down your listing, which means lost sales.
Protect Your Brand's Image
If a customer gets a fake item, they’ll be unhappy and may leave a bad review. This can hurt your brand’s reputation, scare away potential customers, and damage your listing’s success.
If you’re a buyer and want to check the product's legitimacy, read our guide on 6 Best Amazon Review Checker Tools.
How Much Does the Amazon Transparency Program Cost?
Amazon doesn’t publicly share exact prices for the Transparency program, but it typically costs between $0.01 and $0.05 per barcode, depending on the number of units.
For example, if you have 1,000 units, you might pay up to $50 for barcodes.
This program is ideal for selling expensive items on Amazon to prevent counterfeits. You can start with expensive products and expand to other items based on your budget and needs.
How to Get Enrolled in the Amazon Transparency Program?
To join the Transparency program, your brand must meet certain criteria. To participate, you must:
- Have an Amazon Brand Registry account
- Be the legitimate brand owner with a registered trademark
- You must have a Global Trade Item Number like a UPC, EAN, JAN, or ISBN
- Apply unique Transparency codes to every unit you make, no matter where you sell them
How You Can Apply for the Amazon Brand Registry Transparency Program?
Applying is easy. Go to the Transparency website and fill out a short form. If Amazon accepts your application, you can select products to authenticate with Transparency codes.
Does Amazon Assist Sellers in Applying Transparency Codes?
Yes, Amazon creates the codes for the SKUs you enroll, but you must apply them. They provide guidelines and support on how to do this correctly, along with resources for troubleshooting and questions.
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FAQ
Do I Need Transparency Listing Application For Used Items?
Yes, a transparency listing application is typically required for used items to ensure that all relevant information about the item's condition and history is disclosed to potential buyers.
