Amazon started as online book store and has grown to be the worlds largest online retailer.
Amazon Project Zero to support brands tackling counterfeits
Amazon Project Zero has launched to support US-based brands tackle counterfeits on the US marketplace. The initiative uses a three-pronged approach that will see brands helping Amazon’s mission in removing fraudulent listings.
How Amazon Project Zero tackles fraudulent listings?
Amazon Project Zero enables brands to control the spread of fraudulent products on the marketplace. The initiative uses machine learning and knowledge that brands have of their own intellectual property and how best to detect counterfeits of their products. Amazon Project Zero tackles fraudulent listing through the use of the following three tools:
1. Automated protections
Amazon’s machine learning and automated protections continuously scan sellers’ stores and pro-actively remove suspected counterfeits. Sellers provide Amazon with their logos, trademarks, and other critical data about their brands, and Amazon scan more than 5 billion product listing updates every day to look for suspected counterfeits. Amazon have been testing these automated protections with a number of brands, and on average, their automated protections pro-actively stop 100 times more suspected counterfeit products as compared to what they reactively remove based on reports from brands.
2.A self-service counterfeit removal tool
Previously, Amazon Brands would need to contact Amazon to remove the fraudulent listings. Instead, they can do it now themselves using Amazon’s new self-service tool. This information also feeds into Amazon’s automated protections so they can catch potential counterfeit listings pro-actively in the future.
Product serialisation is a service that allows Amazon to individually scan and confirm the authenticity of every one of a brand’s products that are purchased in Amazon’s stores. The product serialisation service provides a unique code for every unit that is manufactured, and the brand puts these codes on its products as part of its manufacturing process. Every time a product uses the serialisation service is ordered in Amazon’s stores, Amazon scan and verify the authenticity of the purchase. With this product serialisation service, Amazon can now detect and stop counterfeiting for every product unit before it reaches a customer.
There is a cost to this service, but the benefits are 100% surety only genuine product is on Amazon regardless which channel it arrives their from.
“Amazon’s product serialization service has been a game changer for us. We are excited to have this self-service counterfeit removal tool for the US Marketplace and consider this to be an insurance policy.”
– Ken Minn, chief executive officer, Kenu
How to sign up for Amazon Project Zero?
Amazon said that the Amazon Project Zero is currently an invite-only experience, and they’re working on to get more brands on board. Brands can join a waitlist and Amazon will inform brands when they can enrol.
Amazon said that they aim to ensure customers always receive authentic goods when shopping on Amazon. They stated that the Amazon Project Zero builds on their long-standing work and investments in the area of tackling counterfeits. It allows brands to work with them, said Amazon, to leverage their combined strengths to move quickly and at scale to drive counterfeits to zero.
While this presents a good opportunity to tackle counterfeits, the question is will it increase instances of merchants having their products flagged as counterfeit when they are in fact genuine. Amazon say that they’ll be policing brands to ensure they don’t overstep the mark, but it only takes one false accusation for a merchant to get their account suspended.
Counterfeit goods overtime will destroy Amazon,s reputation and business model unless checked.
What will happen is that people that buy counterfeit goods on Amazon will then stop using Amazon and directly to go the companies own website when they want to buy a product. Where people will then stop subscribing to prime. Where Amazon will have a negative flywheel. A person buys counterfeit goods on Amazon the person stops buying goods from Amazon the person stops subscribing to prime.
Amazon needs to stop counterfeits quickly and these new services seem to address the problem.
Would be nice if Amazon would do something about counterfeiters using other marketplaces, such as UK to sell brands trademarked in other marketplaces, such as the US. Until that happens, counterfeiters will keep using this loophole to get away with their crimes. Most smaller businesses won’t be able to take on the expense of trademarking their products in every country, as that is the only way Amazon will consider their claims to be legitimate. A simple system would be for Amazon to have resellers contact the brand and be placed on a verified reseller list. If a seller isn’t on the list, they can’t offer the brand. Isn’t that kind of how the real world work? You need approval to become a distributor of a brand. Brands want qualified resellers working with them. When a customer has a negative experience with the counterfeit product, the negative review goes back to the original brand, not to the counterfeit seller. This also needs to be changed somehow so real sellers don’t have to fight with Amazon over their own ability to remain in good standing with Amazon.