Amazon is a robust platform that enables businesses to reach customers with ease. But it’s rife with competition and counterfeits, so understanding fundamental Amazon fraud prevention techniques is critical. While marketplace competition is beautiful, it can pose a potential threat.
This guide will detail why fraudulent sellers target businesses and how they could harm your brand. We’ll also examine the steps you can take today to protect your brand on the platform.
You'll learn about Amazon's counterfeit prevention tools and strategies for identifying Amazon unauthorized sellers selling your products. And we’ll reveal tips for enforcing your intellectual property rights to safeguard your products from infringement.
As a brand owner, it's common to find black hat resellers selling your products on Amazon without your permission. As such, it’s essential to protect your brand against these unauthorized Amazon sellers and ensure your customers receive the best experience. The best defense is to take proactive steps to safeguard against this kind of infringement.
But first, brands must know the dangers of organized crime on the platform before implementing Amazon fraud prevention measures. Essentially, there are four core criminal elements you should be aware of on Amazon. To help you pinpoint the fraudsters, let's delve deeper into the four horsemen of bad Amazon sellers.
These are any Amazon sellers who are unauthorized to sell your products. In other words, you have yet to permit them to resell your products or know who they are.
These could be brick-and-mortar retailers trying to move inventory or someone who thought it would be easy to sell on Amazon. The biggest issue is how long it can take to figure out who they are. For instance, their seller name may not match their physical store or your list of authorized retailers.
These fraudulent sellers can drive your brand to extinction. For example, one client we worked with had 14 spreadsheet buyers selling the same product through 5 listings.
Amazon spreadsheet buyers relentlessly track the best-performing products using third-party tools to analyze Amazon. Then they bombard brands with calls until they agree to sell their product.
This buyer group slowly dilutes your brand by ignoring MAP agreements, undercutting other sellers, and eroding the product's value. Plus, they typically violate Amazon's Code of Conduct policies.
Amazon listing hijackers copy your product to create a fake version that looks and functions like yours. But it isn't your product, and these Amazon counterfeit retailers sell the product using your barcode and retailer listings.
The black hat seller’s product is usually significantly cheaper and of poor quality. This type of underhanded activity can have a devastatingly negative impact on your brand reputation.
Piggy backers on the platform are like Amazon unauthorized sellers because they lack permission to resell your products. These retailers typically purchase your product legally but at a discounted warehouse or store without your consent.
The issue arises when they sell last year's model as this year's product on Amazon. Your customers eventually notice the difference and post a negative review, reflecting poorly on your brand.
These four horsemen of Amazon's unauthorized sellers won't safeguard your brand's integrity or values.
One practical Amazon fraud prevention approach is to check the Amazon listings from your retailers. Determine whether they lack any of the following:
If the answer is “yes” to any of the above elements, it could lead to negative customer feedback and a tarnished brand reputation. Don't lose your brand identity to bad reviews.
When consumers are ready to buy a product, nearly 75% of them go straight to Amazon to do it, according to Feedvisor. Meaning your customers see those reviews before purchasing a product anywhere else.
You can prevent negative feedback by creating compelling content for your product listings, including a thorough, engaging description and striking visuals.
Knowing the best Amazon fraud prevention method is crucial for protecting your brand on the platform.
Fortunately, you have the option to report Amazon unauthorized sellers to Amazon’s customer support team. While it may seem arduous, it can and must be done.
Here are some first steps to take before considering litigation:
For a quick run-through of reporting unauthorized Amazon sellers, watch this helpful video: How to remove unauthorized Amazon sellers: First steps.
In taking these first Amazon fraud prevention steps, you remain one step ahead of Amazon's unauthorized sellers, counterfeiters, and other threats. And you’re one step closer to keeping your brand's reputation intact by proactively removing them from the platform.
Always keep tabs on who is selling your products. And don’t hesitate to take action if you discover someone has taken advantage of your brand without permission.
