Amazon’s business is getting tougher, with thousands of sellers popping up regularly. With many sellers selling the same products, Amazon buyers are confused about selecting genuine and authentic sellers.
Additionally, sellers must retain their customers and ensure that they are paying for the product to have the authenticity they expect. But how can the customers confirm it? That’s where Amazon’s transparency system comes in.
So, what’s the Amazon transparency program, how it works, and what are its pros and cons for Amazon sellers? You’ll learn everything about it in this article. You’ll also know how to enroll in this program, its costs, and how to add transparency codes to Amazon.
Let’s start.
What Is the Amazon Transparency Program?
The Amazon transparency program is a special program designed to check the authenticity of the products. As the program’s name suggests, it provides transparent information about the products customers require.
In this program, Amazon brand owners allocate unique serial numbers to every product. Customers can check these unique transparency codes to ensure they have received genuine and authentic products.
Brand owners use this program to win their customers’ trust by ensuring that only authentic units are shipped to customers.
This helps brands and customers ensure they are protected from counterfeit products.
How Does the Amazon Transparency Program Work?
The Amazon transparency program asks Amazon sellers to assign unique codes to each item or SKU of their products.
If your brand is enrolled in the Amazon transparency program, Amazon will always ask you to allocate the unique transparency code to your products every time you send your products to its fulfillment centers.
If you fail to allocate unique codes to your products, Amazon may not accept them or ask you to provide valid transparency codes for the items before selling them.
When a seller has successfully given codes to the products, Amazon will make those codes scannable via the mobile app.
Customers can scan those codes to verify their authenticity when receiving those products.
These codes can be scanned through Amazon’s app or any QR scanner app. When the customers scan these codes, they usually see a green check mark if the product is authentic. If not, the app may warn customers of the products being possibly counterfeit.
The unique transparency code is usually generated using a Global Trade Item Number (GTIN). A GTIN is also used to identify an item in international trade. The transparency code using a GTIN is printed on the product’s packaging and used to track products during shipment.
Pros and Cons of the Amazon Transparency Program
Let’s find out the advantages and disadvantages of using this product serialization service on Amazon.
Pros of Amazon Transparency
Enrolling your brand in the Amazon Transparency Program can get the following benefits.
Helps Customers Decide to Buy from Your Brand
When your customers are sure they will get genuine products by using Amazon’s app or a third-party app, they will trust your brand more and be more loyal. They are more likely to buy from you as compared to other sellers.
Enhances Brand’s Reputation
Using the Amazon transparency program will increase the brand’s reputation. Your Amazon shop will be treated as a professional seller. Hence, your brand’s name is stuck in your customer’s head for a long time.
Authenticates Your Private-label Products
If you’re running a private-label business on Amazon, you want to ensure that your customers get your custom-made products. The Amazon transparency program will keep your brand’s head high in the eyes of your customers.
Gets More Positive Reviews
Positive reviews and feedback matter a lot for an Amazon seller. Giving additional protection to your customers will increase customer engagement and encourage them to leave positive reviews on your shop.
Attracts Repeat Orders
Your customers feel special when you give them an added facility to authenticate products. Your customers are more likely to place repeat orders with such special treatment.
Competitive Advantage
Customers can feel a significant difference between buying from a seller who offers this transparency program and one who doesn’t. Offering the transparency program to your customers will give you competitive superiority.
Supply Chain Visibility
The unique transparency codes are scannable and traceable throughout their way to the customer’s address, making it easier for brand owners to keep track of their products in the supply chain.
Reduced Returns and Refunds
Using the Amazon Transparency program, you can reduce the headaches of returns and refunds. If your customers know they have received genuine products, they will be less likely to file return and refund requests.
This will not only save you costs but will also save you time in providing extra customer care services.
Avoids Legal Troubles
If your customers receive counterfeit or fake products, it may cause legal trouble for your business. Using the Amazon Transparency program will help your customers know about the authenticity of the products, hence avoiding legal troubles.
Cons of Amazon Transparency
Following are the possible cons of using the Amazon Transparency Program.
Additional Costs
The Amazon Transparency program is not free of cost. It comes at an additional cost. The costs may go significantly high if you have a lot of products for which you want to provide transparency codes.
This may reduce your profit margins if you don’t increase your product’s prices.
Additional Efforts
Generating and applying unique codes to every SKU may be hectic and time-consuming. If you use the Amazon Transparency program, you must spend additional time or hire additional resources to perform these tasks.
Not Available in Every Country
Although Amazon Transparency is a global service, it can only be used in the countries where it has been launched. The Amazon Transparency program is only available in ten countries, including the United States.
How Much Does the Amazon Transparency Program Cost?
The Amazon Transparency Program is charged per code. The cost of generating a unique transparency code ranges from $0.01 to $0.05 per code.
The costs per code may increase or decrease as per the number of codes you purchase. Higher the number, the lower the cost, and vice-versa. The cost of the code also depends on the size of the packaging.
You should also incorporate the costs of printing and pasting those labels on your packaging, especially if you are an FBM seller. These costs also apply to third-party sellers.
Amazon brand owners may also need to buy barcode printers and scanners.
How to Enroll in the Amazon Transparency Program?
First, you must be a brand owner on Amazon to utilize the Amazon Transparency Program. You can follow these steps to register your brand for this program.
- Visit Amazon’s Transparency Page and click “Get Started.”
- Fill in your business information about your brand, including its name, logo, and product categories.
- Mention how many codes you need for your products.
- Apply transparency codes to all or selected products using Amazon’s Transparency app.
How to Add Transparency Codes to Amazon?
After registering your brand on the Amazon Transparency Program, you can add transparency codes to your products using the following two methods.
Amazon Mobile App
Brand owners on Amazon may add transparency codes by using Amazon’s transparency mobile app.
You can apply codes individually to your selected products using this app.
This method is recommended if you have a limited number of products for which you want to add transparency codes.
- Sign in to your Amazon Seller Central account.
- Prepare the scannable barcode for your products.
- Scan the product barcode using the app’s scanner.
- Tag the transparency label on the product’s packaging.
- Save the progress in the app.
Bulk Upload
If you have many SKUs for which you want to add transparency codes, you should use the bulk upload method by implementing the following steps.
- Sign in to your Amazon Seller Central account.
- Prepare the scannable barcode for your products.
- Download the Amazon Transparency bulk upload template.
- Enter the product information into the spreadsheet, including the GTIN and transparency code.
- Save the spreadsheet as a CSV file.
- Upload the CSV file to Amazon Seller Central.
Tip: It is advised to scan the uploaded codes again to validate that you have set the transparency codes correctly.
FAQs about Amazon Transparency
Read the answers to the following frequently asked questions about Amazon transparency to better understand this program.
How to Check Your Eligibility for the Amazon Transparency Program?
You must fulfill the following requirements to utilize the Amazon Transparency Program.
- Your business must be registered with your relevant government.
- You should enroll your business in Amazon’s Brand Registry program.
- Your products should have a Global Trade Item Number (GTIN).
- You should be able to apply unique transparency codes for your products.
Which Apps Do Customers Need to Check Authenticity of Products?
Amazon customers can check the authenticity of products by using the Amazon Shopping app or the Transparency app. Both apps can be downloaded from iOS and Android devices.
In Which Countries Is the Amazon Transparency Available?
Amazon Transparency Program has been launched in ten countries. These countries include the United States, Canada, Germany, France, Italy, India, Spain, the United Kingdom, Japan, and Australia.
Which Information Does the Amazon Transparency App Tell Your Customers?
Your customers usually see a green or red mark to validate the product’s authenticity. Brands can also share additional product information that customers can see after scanning the code.
The additional information may include the product’s manufacturing date, the brand’s owner, and the product’s country of origin.
What Happens If Your Customers Can’t Confirm the Product’s Authenticity?
If your customers get a red alert after they scan your products, they may report it to Amazon. Amazon would take necessary actions if the customer received counterfeit or fake products.
Your customers can return the products to Amazon. Amazon allows you to resolve the issue within a short time, typically one calendar day.
Amazon takes counterfeit products very seriously. If your brand sold unauthenticated products, your Amazon account may be suspended or even removed.
Summary
The Amazon Transparency program is a valuable tool for brand owners looking to protect their brands from counterfeit products and ensure that their customers only get authentic and genuine products.
Brand owners can demonstrate true value to their customers at a little additional cost using this amazing program. If you are a brand owner at Amazon, using this simple yet powerful tool may bring encouraging results for your business.
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