Insights

Is Amazon's Transparency Program Killing off 3rd Party Sellers?

The video discusses Amazon's Transparency Program and its impact on third-party sellers. The Transparency Program, designed to protect brand owners from unauthorized sellers, requires brands to apply serialized labels to each product, effectively gating their listings and limiting third-party sellers. This has become a source of frustration for many resellers, who find themselves locked out of listings they’ve previously sold.

One of the central complaints is the perceived abuse of the program by some brands, who use it to control pricing and restrict competition. These brands often sell through distributors, but resellers on Amazon may offer the products below the suggested retail price, hurting traditional retailers. The program allows brands to regain control over pricing and who can sell their products on Amazon.

The video addresses sellers' grievances, including cases where products purchased from reputable distributors lacked the required transparency labels, leading Amazon to mark them as defective. Some third-party sellers have seen their inventory rejected by Amazon and returned at their own cost.

While the program is a benefit to brand owners seeking control, it presents a significant challenge for third-party sellers, particularly as more brands adopt it to protect their listings. As a result, the video advises caution for sellers when purchasing inventory to avoid being locked out of future sales.

If you're interested in a deeper dive into this topic, check out the video below!