December 5, 2020
Amazon Project Zero

Amazon’s New Counterfeit Protection Program could Seriously Drive Up the Prices Consumers Pay

Amazon Project Zero is a new initiative to combat counterfeit goods on the platform and it might drive prices up as brands gain more control…

It’s certainly no secret Amazon has a counterfeit problem. For many years, unscrupulous sellers have peddled fakes of all shapes and sizes. Just perform a quick search and it’s easy to find knock-offs of big brand names. 

Amazon Project Zero Counterfeit Program might Raise Prices across the Site

Amazon is aware albeit somewhat apathetic, of its counterfeit problem. Now, the world’s largest ecommerce platform says it’s doing something about the problem.

It’s called “Project Zero,” and it gives name brands the power to remove counterfeits without having to wait for Amazon to take action. 

Of course, giving large corporations such carte blanche over others creates a whole new set of problems. For example, it could prove problematic for sellers with similar products.

Then, there’s also the issue of Amazon exempting itself. The company has copycatted varies items, attached the Amazon Basics logo, and sold said items with undercut prices.

Another component of Project Zero is a tool for “product serialization,” which adds unique identifiers which ensures products are genuine. But, it comes with a cost, between, $0.01 and $0.05, per item, which depends on sales volumes.

Such fees will almost assuredly be passed directly onto consumers and coupled with the ability to suppress competition, that spells higher prices.

The good news is, Amazon’s machine learning is making progress and stops “100 times more” counterfeits than its previous system.

Ashley Lipman

Ashley Lipman is a super-connector with Outreachmama who helps businesses find their audience online through outreach, partnerships, and networking.

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