Amazon selling is often touted as one of the biggest opportunities of the century, with the marketplace attracting 3.09 billion users per month and generating $1.57 billion in daily sales. But not even Amazon is a completely safe bet: In 2023, the eCommerce juggernaut “found, seized and discarded more than 7 million” counterfeit items.

Despite Amazon’s best efforts, counterfeiting still threatens sellers and the platform. In a bid to eradicate fraudulent goods from the marketplace, Amazon launched the Transparency program. It boasts several attractive features, with one of the most notable being Transparency codes.

We’ll give you the full scoop on Transparency and its codes, including a brief overview of the program, how the codes work, and how you can grab your own to protect your Amazon brand.

What is the Amazon Transparency program?

The Transparency program is a product serialization service from Amazon that provides unique codes for every product. What started out as a bid to curb fake goods infiltrating their ecosystem in 2017 has now transformed into a full-scale security initiative.

The Transparency program even has its own platform procedures and solutions to:

• Stop harmful actions from criminals, like blocking and removing hijackers
• Prevent counterfeits from reaching buyers
• Improve customer engagement
• Give brands valuable insight to optimize their supply chains

Transparency is currently available in Canada, India, the UK, the U.S., Germany, France, Italy, Spain, Japan, and Australia, but Amazon plans to expand this list in the future.

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What are Transparency codes?

Transparency codes are two-dimensional QR codes designed to authenticate a product before it ships to customers. Buyers can scan them using the Amazon Shopping app or a Transparency-specific app to verify the genuineness of the item they’ve purchased. These codes also help you protect your brand on Amazon by preventing scammers from selling fraudulent products under your name.

The process to enroll in the Amazon program is simple: Once you sign up, you’ll immediately gain access to Transparency codes. Here’s what you need to get the green light:

• A registered trademark
• A valid Global Trade Item Number (GTIN) (e.g., EAN, UPC, ISBN)
• The ability to attach Transparency codes to every product you manufacture, whether it’s sold or not

You can apply for the program through Transparency’s online portal.

How do Transparency codes work?

Once enrolled in Transparency, you can apply its product protection measures right away. Here’s an overview of how the program works:

1. Amazon provides a series of unique Transparency barcodes in a CSV file. Each code corresponds to an individual product unit and can only be used once. They also give you a set of T-shaped, two-dimensional QR code stickers for you to put on your products.
2. You (or your fulfillment provider or Amazon’s prep service) attach each code to the corresponding product’s packaging.
3. Before fulfillment, Amazon scans every item’s code to verify it’s authentic.
4. If the product registers as genuine once scanned, Amazon will prep it for shipping. If it fails to pass the test or doesn’t have a code at all, then Amazon will set it aside as a potential counterfeit and flag the item for further investigation.

Transparency program FAQs

The Amazon Transparency program is easy to enroll in and brings several enticing benefits. Still, it’s inevitable for participants to run into a few snags along the way.

Can FBM sellers participate in the Transparency program?

Yes, but FBM sellers must handle applying Transparency codes for each of their Transparency-enabled listings. FBM sellers are responsible for their own fulfillment and thus for attaching barcodes to every product before shipping as well. To help ensure the goods are real, Amazon will provide FBM participants with unique Transparency codes.

Is every Transparency code unique?

Yes. Whether you’re an FBA or FBM seller, every Transparency code you receive is unique to an individual SKU.

How does Amazon ensure products from FBA orders are authentic?

Amazon personnel use an app designed specifically to scan every item in an FBA order to validate their authenticity before shipment.

Can customers scan Transparency codes too?

Yes. Amazon also empowers customers to scan and verify products for authenticity. Once they receive their packages, buyers can use the Amazon Shopping App or a Transparency-affiliated app to scan the items they’ve purchased and check for authenticity. If the app shows a green tick mark, they know the product is genuine; if it shows a red cross, it means the product is fake.

The cost of Transparency codes

Amazon hasn’t given any concrete figures on the cost of Transparency codes, but word on the street suggests you’d pay between $0.01 and $0.05 per label. Typically, you can expect a charge closer to the lower end of that spectrum if you buy fewer than 10 million codes at a time, and closer to the higher end if you buy more than 10 million codes at a time.

While there’s no “catch” with Transparency codes, there are some strict rules to pay attention to. For example:

You can:

• Use Transparency codes on all your SKUs with active listings on Amazon
• Print your Transparency codes at home, in-house, or via a supplier, manufacturer, 3PL, or Amazon prep service

You can’t:

• Sell or give your Transparency codes to another brand or seller
• Obtain Transparency codes from anywhere other than Amazon
• Alter or tamper with your Transparency codes
• Reuse Transparency codes on other items
• Apply Transparency codes to unauthorized or unregistered products

Printing requirements for Transparency labels

To participate in the Transparency program, you must abide by Amazon’s specific guidelines — beginning with properly formatting and printing your labels.

Label specifications

• Material: Use durable label materials that can withstand handling, such as weatherproof and smudge-proof thermal labels. This is important to ensure the labels remain intact and scannable during shipping and storage.
• Size: Usually, a 1 inch x 1 inch label is sufficient. What’s most important is that the barcode is large enough to scan easily.
• Format: Each code must be printed as a two-dimensional DataMatrix barcode and include a unique alphanumeric identifier. You can import and set up Transparency codes in this format using label design software (e.g., Bartender, NiceLabel).

Printing specifications

• Printers: Use high-quality printers that can produce clear, sharp barcodes. For example, thermal-transfer printers are a popular choice due to their precision and durability.
• Settings: Ensure the printer settings match Amazon’s barcode guidelines to avoid smudging or misprints.
• Tests: Before printing large quantities, perform a test run to check for proper sizing, correct formatting, clarity, and scannability.
• Batches: Print labels in batches using the Transparency codes provided so they match perfectly.

How to apply Transparency labels correctly

Participating in Amazon’s Transparency program isn’t as simple as slapping a label onto a product. You must ensure labels are properly placed and adhere to each item so they remain readable and scannable throughout the product’s entire journey.

Follow these steps to apply Transparency labels correctly and prevent unnecessary issues:

1. Display labels in easily visible spots: Place the label on a flat, visible surface of the product or packaging where it won’t be obscured or damaged. Avoid curved surfaces, as it might be difficult to scan the barcode properly.
2. Put labels directly on products: Transparency labels should go directly on the packaging or the product itself. The specific location will depend on your packaging type (e.g., boxes, polybags).
3. Double-check you’ve applied labels correctly: After application, scan a few labels with a barcode scanner or a smartphone app to ensure they’re readable and printed accurately.

From purchase to reaching the intended buyer, every product sold on Amazon goes on a long, involved journey. Make sure your Transparency labels are prepared to withstand the entire trip by following these best practices:

• Check for accessibility: Ensure the label is easy to reach for scanning by both Amazon personnel during fulfillment and by customers post-delivery.
• Use pressure-sensitive adhesives: Pressure-sensitive labels adhere firmly without peeling. Don’t reposition labels after application to maintain adhesion quality.
• Avoid overlapping: Don’t place any other labels, tape, branding materials, etc., over the Transparency label; otherwise, you may obstruct the barcode.
• Enforce quality control: Regularly inspect the quality of your printed labels to ensure there are no defects or misaligned barcodes.
• Ensure proper storage: Store printed labels in a cool, dry place to maintain adhesive durability and readability.
• Prepare backups: Always keep extra labels available in case of printing errors or additional inventory needs.

3 Compelling reasons why Transparency codes are a must

Like most growing brands, you probably have a lengthy list of projects you’d like to invest in. But there aren’t enough resources to go around, so you must choose wisely. Transparency codes are one such worthy expenditure due to a few enticing reasons:

• Protect your brand reputation: A great deal of time, money, and effort goes into establishing a brand and securing rankings on Amazon’s SERPs. So, it’s essential you be proactive in safeguarding your assets, which include your goods, sales, and brand reputation. Transparency codes are a great starting point and can kick-start your shift to more sophisticated security for your Amazon business.
• Deter counterfeiters to boost revenue: While there’s no way for you to stop all criminals, Transparency codes make it hard for counterfeiters to ambush your goods, so they’ll be less likely to target you. This approach prevents you from losing sales to bad actors and thus increases your revenue by default.
• Instill confidence in your customers: No customer wants to open a package and discover the item they spent their hard-earned money on is a fake. This creates a poor customer experience and makes shoppers reluctant to buy from your brand again. By adding an extra layer of protection with Transparency codes, you reassure shoppers that you’re trustworthy. That’s especially important if you sell high-ticket items or goods known for being targets for fraud.

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How to stay safe when selling on Amazon

Undoubtedly, Amazon’s tough on security: In 2022, the eCommerce giant aided in the dissolution of three major counterfeit networks and “identified, seized, and appropriately disposed of” over three million fake products the year prior. In 2023, they more than doubled that number, capturing over seven million counterfeit goods.

However, while Amazon’s Transparency codes offer game-changing protections, keeping your goods safe from counterfeiting takes a concerted effort. The codes should be a part of your security measures on Amazon but not your sole safeguard. Let’s break down some other protections you can embrace.

Set up alerts for problematic actions on the platform

To keep your brand, listings, and products safe, you’ll need to watch for fraud 24/7. As a growing brand though, it’s unrealistic to monitor your eCommerce ecosystem around the clock. So, lean on security tools from brands like Helium 10 or SellerApp to spot cloned listings, hijacking, and intellectual property infringements.

Also, make it a habit to report suspicious activity via Amazon’s Report A Violation tool, which you can access when you sign up for Brand Registry. This measure will help you eliminate issues sooner to minimize damage.

Adopt trustworthy prep, pack, and fulfillment

Your fulfillment process can actually make your goods vulnerable to fraud. All it takes is a shady logistics company swapping out your authentic products for cheaper ones and sending those to your customers. Then, they turn around and sell your real goods on the black market. But, with some due diligence, you can avoid that drama.

To point you in the right direction, look for the following traits in a potential 3PL:

• Strategic when labeling goods, especially if you have a large product portfolio. For example, the service starts with products that have been targeted in the past or are in a category that criminals regularly hit.
• Possesses internal security measures to shield the goods they store for you from tampering and theft.
• Has experience in adding security seals to a range of product types.

Tip: Remember to add the cost of Transparency codes and the labeling service into the price of your products to keep your operation profitable.

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Keep up to date on the latest security measures and anti-counterfeiting news

Innovative security measures are constantly released on Amazon and in the anti-counterfeiting world, so it’s vital to stay on top of them to inform your strategy.

Read blogs about online selling security, watch webinars, and attend seminars to expand your knowledge and refine processes to catch and block the latest counterfeiting tricks. Also, if you sell goods that are commonly targeted, invest in expert help to craft solutions that further protect your offerings.

Wrapping up — The secret to safe selling on Amazon

Amazon’s Transparency program is an excellent entry point to upgrade your product authentication and brand security. When used in tandem with other security-boosting measures, Transparency codes can help you stay ahead of criminals and keep your brand, sales, and customers safe.

But your work doesn’t stop at these barcodes. As your sales and product portfolio grow, you’ll need to implement other initiatives both on and off Amazon. Embrace tech tools that’ll monitor product, listing, and IP infractions on your behalf. Research security measures for eCommerce businesses and continuously refine your approach. Your fight against counterfeiters will continue as long as you’re in business, so get started on your security optimizations today and rest easy as your brand scales unhindered.

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Published: November 1, 2022
Updated: November 11, 2024