How Amazon Transparency Works & Why Your Business Needs It

What is Amazon Transparency?

In today’s e-commerce world, counterfeit products are the biggest threats to both customers and sellers. Buyers need the products they order to be authentic, and sellers expect their brand reputation to remain intact, but the fact is, without robust safeguards, counterfeiters can infiltrate even well-established listings. This is where the Amazon Transparency Program comes into action.

So, what is the Amazon Transparency Program? It is a unit-level product serialisation and authenticity verification service which is created by Amazon to protect brands and customers from counterfeit products. This works by assigning a unique transparency code to every single unit of your product, making it impossible for counterfeiters to infiltrate your supply chain.

The Transparency Amazon Program is not just about preventing fakes; it also enhances customer trust and boosts credibility, aligning your brand with Amazon’s strict quality standards.

The rise of counterfeit products

Industry estimates suggest that counterfeit goods account for over $300 billion in global trade annually. On Amazon, knockoffs damage brand reputation and can lead to financial losses for genuine sellers.

Protecting brands and customers

The Amazon Transparency Program gives sellers a direct way to protect their intellectual property while ensuring customers get authentic products. When customers scan a transparency code, they see confirmation that the item is genuine, plus brand-supplied content like manufacturing details or usage tips.

How it fits into Amazon’s overall brand protection efforts

Transparency is part of Amazon’s broader anti-counterfeiting ecosystem, alongside Brand Registry and Project Zero. While Brand Registry protects your content, and Project Zero removes fakes automatically, Transparency stops counterfeit units from ever reaching the buyer.

The Transparency Program Amazon uses serialisation technology to verify authenticity at the individual product level.

• Unique Transparency codes and labels: Once rolled, you will request unique, non-sequential 2D barcodes for every product unit. These Transparency codes are generated by Amazon and stored in their own database. No two codes are similar, and counterfeiters cannot predict them.
• How products are scanned and verified: When products reach Amazon’s fulfilment centres, every unit is scanned. If a Transparency code is missing, the product will be blocked from selling.
• The role of customers and Amazon fulfillment centers: Customers can download the free Transparency app to scan a product’s code. If the code matches Amazon’s database, they will see a confirmation text. If not, the app alerts them that the product may be counterfeit. This two-tier verification helps in providing protection.

• Brand protection against counterfeiters: With Amazon Transparency, counterfeiters cannot hijack your listing with fake products because every unit will need a valid code to be shipped.
• Increased customer trust and loyalty: Shoppers are likely to buy from brands that give visible authenticity checks; by displaying the Transparency Amazon program logo and informing buyers about the code, you can create a reputation for trustworthiness.
• Product authenticity verification: Customers can verify authenticity instantly by giving them peace of mind, especially for high-value products such as cosmetics, supplements, and electronics.
• Boosting product visibility and sales: Genuine products mean fewer negative reviews and a better Amazon ranking, leading to higher conversion rates.

• Brand registry and trademark requirements: You should have an active registered trademark and be enrolled in Amazon Brand Registry.
• Product types supported: Any product that is registered under a brand and has a Global Trade Item Number (GTIN), such as an ISBN, EAN, or UPC, is eligible.
• Countries and marketplaces where it’s available: Currently, Transparency is active in the United States, the United Kingdom, Canada, France, Italy, Spain, Germany, Australia, India, and Japan.

• Registering your brand: Make sure you have a legitimate trademark and are listed in the Amazon Brand Registry.
• Submitting product information: Enter manufacturing information and product identifiers into the Transparency portal.
• Ordering Transparency codes: These can be outsourced to an approved printer or printed internally.
• Applying codes correctly to your products: Before leaving your facility, each unit you sell needs to have a transparency code on it.

The price of the Amazon Transparency Program is determined by how many codes you buy:

• • About $0.05 per code for less than one million units.
  • Approximately $0.03 per code for 1–10 million units.
  • As little as $0.01 per code for over 10 million units.

  In comparison to the possible losses brought on by counterfeiting, these expenses are negligible. The ROI is favorable for most sellers, even after accounting for label printing and application.
  

Labeling and code application errors

One of the most common issues sellers face in the Transparency program is improper labeling or code application. Each Transparency code should be printed clearly and remain undamaged during shipping and handling. If the code is smudged, torn, or positioned incorrectly. Amazon’s scanning systems may fail to read it and result in the product being rejected. Such errors not only lead to delays in fulfillment but can also negatively affect customer trust or prevent buyers from verifying authenticity.

Inventory delays

Another challenge arises when transparency codes are missing. Products without valid codes cannot be processed efficiently at Amazon Fulfillment centres, often leading to significant shipment delays. These delays can disrupt inventory planning, affect product availability, and potentially lead to stockouts, especially during high-demand periods. Sellers should ensure that all units are correctly labelled before shipment to maintain smooth operations and avoid costly delays in reaching customers.

Misunderstanding program requirements

A frequent mistake among sellers is misunderstanding the scope of the transparency program requirements. Once a brand enrolls, transparency codes are needed not just for Amazon sales but across all sales channels where the product is distributed. Many sellers mistakenly assume the requirement applies only to units sold on Amazon, which can lead to compliance issues, unauthorised sales, or gaps in product tracking. Awareness of this broader obligation ensures that every product unit carries a valid Transparency code, maintaining brand integrity and customer confidence.

After joining Transparency, Hairgenics reportedly reduced negative reviews and counterfeit infiltration, saving hundreds of thousands of dollars in lost revenue.

In crowded markets, smaller supplement brands have swiftly gained consumer trust by using Amazon’s Transparency Program.

After teaching consumers how to scan transparency codes, a high-end electronics brand saw a 20% increase in repeat business.

Amazon Brand Registry

The purpose of the Amazon Brand Registry is to safeguard a brand’s control over listing content and intellectual property. Sellers can control product descriptions and images, report and remove infringing listings, and stop unauthorized sellers from manipulating listings by signing up for Brand Registry. It’s crucial to remember that Brand Registry does not confirm the legitimacy of every single product unit; rather, it concentrates on protecting intellectual property at the listing level. Although it helps a brand better manage its market presence, it doesn’t always stop fake goods from being offered for sale under the brand name.

Amazon Project Zero

By using automated technologies and artificial intelligence to identify and eliminate fake listings instantly, Amazon Project Zero goes above and beyond brand protection. Without depending on Amazon’s help, enrolled brands have the ability to immediately remove suspected counterfeit listings, which speeds up and improves the process. Additionally, Project Zero gives brands more precise control over product authenticity with features like serialized codes for unit-level tracking and automated counterfeit detection. By combining direct action with AI-driven monitoring, brands are able to uphold greater levels of consumer safety and trust on the platform.

Other third-party anti-counterfeit measures

Brands can further secure their products by utilizing third-party anti-counterfeit measures in addition to Amazon’s internal programs. Holographic labels, serialized QR codes, blockchain-based tracking, and other unit-level verification tools from third-party vendors are available options. These solutions provide an extra degree of security over Amazon’s systems by enabling buyers and sellers to independently confirm the legitimacy of each product. Brands can improve their anti-counterfeit strategy, lower the possibility of counterfeit goods getting into the supply chain, and preserve consumer trust across all sales channels by incorporating these external technologies.

The Amazon Transparency Program is a worthwhile investment if you sell expensive goods, work in a market where counterfeiting is common, or just wish to increase the legitimacy of your company.

Advice for beginners:

• Start with the SKUs that are most at risk.
• To prevent code errors, use approved printing partners.
• Customers should be instructed on how to scan transparency codes.

Long-term advantages include increased brand equity, improved customer loyalty, and fewer complaints about counterfeit goods. The modest cost per unit of the Amazon Transparency Program is often more than compensated for by most brands.