Blockchain & Product Authenticity Verification on Amazon
Leveraging blockchain and transparency programs to combat counterfeiting and build consumer trust in high-value categories
Though Amazon has grown into the largest e-commerce company operating globally, that success has come with the downside of protecting the brand from the proliferation of counterfeit products for legitimate sellers on the platform. Concerning fakes, high-value products are always most at risk, especially in the areas of electronic items, luxury goods (watches, handbags, jewelry), cosmetics and beauty products, dietary supplements, and branded tools (e.g., equipment, adjustable screwdrivers, etc.). Selling counterfeit goods harms customers, erodes trust in a marketplace, and injures legitimate sellers’ reputations.
To counter the legal and reputational risk, the Company has been developing its Amazon Transparency Program and further investing in countermeasures using blockchain technology. These tools and systems do not only assist in combating product counterfeiting, but they also aid in tracking and managing supply chains, product release, and the promotion of fraud. In today’s world, blockchain technology empowers brands and gives consumers the confidence needed to purchase high confidence/ high risk items, especially luxury products.
An explanation of blockchain technology, its application and efficacy in combating counterfeiting, and providing a description of enhanced protection of the Amazon Transparency Program are the major components of this informative article, aimed at assisting sellers in developing trust with customers and increased sales in high-value products.
The Defining Attributes of Blockchain
To begin with, a blockchain is a system of digital records that cannot be altered in any way – they are permanent, and this system is simply known as a distributed digital ledger. Information that is written to the blockchain cannot be modified, hacked, or removed. Such characteristics make blockchain technology exceedingly useful for the purpose of product authentication and verification.
What Happens in the Supply Chain
Every item made on the production line will now have the following attributes that will be digitally recorded:
An item will have a distinct identification:
Manufacturer’s Serial
Date of Manufacture,
Batch number,
Place of Manufacture,
Shipping
Packaging
All of the information will be recorded in a blockchain system, meaning it will be immutable, and a random QR code or NFC will be created to allow Amazon, sellers, and customers to authenticate the product instantly.
Why Immutable Record Is Trusted
An immutable record ensures that the data is trustworthy because:
– It cannot be changed.
– It is transparent to all the supply chain partners.
– It can provide proof of authenticity for the data saved in it.
– It guarantees that the information saved cannot be duplicated and thus reduces the chances of product fraud.
For Amazon sellers, blockchain means complete visibility and traceability from producer to consumer.
Why Counterfeit Is a Problem for Amazon
Every year, there are millions of counterfeit items sold on the internet. The problem is centered on Amazon because:
1. Trust is lost.
Customers reproducibly receive suspicious items and shift their negative trust to the associated brand, irrespective of the actual seller.
2. Financial Value Erosion.
Counterfeit items directly compete for sales, eroding brand equity and brand value, thus, financially impacting legitimate sellers.
3. Increased Law Compliance.
Fraudulent items are the root cause of negative feedback and A-to-Z claims, return requests, and regulatory burdens.
4. High-value products are the most distressed.
Counterfeit items frequently target Electronics, Luxury Goods, Skin care products, Supplements, and branded Accessories.
Blockchain can solve these problems by providing digital histories for each product that are transparent and unalterable.
Benefits of Blockchain for Amazon Sellers
1. Full Traceability From Production to Customer
Every step of the process—manufacturing, packing, and logistics—gets logged into the system, and nothing can be edited or deleted once it goes onto the blockchain.
2. Protection against Counterfeiting
Fraudulent sellers can’t create or obtain blockchain-authenticated codes or entries, which prevents counterfeiting on and off Amazon.
3. Trust from More Customers
Being blockchain-verified makes products appear trusted and higher quality, which makes people want to purchase them when high-price items come with guaranteed authenticity.
4. More Sales
Authenticity verification leads to higher and faster conversions for listings, making them sell actively as people are aware of the genuine item.
5. Better Supply Chain Oversight
Brands can analyze and identify:
– Unauthorized reselling
– Gray-market diversion
– Record tampering in transit
– Fabricated documents
6. Reduced Complaints and Returns
Many return requests stem from authenticity doubts, which Blockchain significantly lessens.
Amazon Transparency Program: Amazon’s Official Solution to Anti-Counterfeiting
The Amazon Transparency Program is Amazon’s verification system for identifying authentic products. It works at the individual item level by assigning each unit a unique Transparency code.
How the Program Works
Sellers can register eligible products for the program.
The seller customizes and affixes these labels to their merchandise.
Upon receipt of inventory in Amazon FBA, Amazon catalogues these labels.
If the code is legitimate → the product is eligible.
If the code has no entry, is fraudulent, or is suppressed → the unit is blocked.
Verification of Customers
Customers may use the Amazon application to scan Transparency labels to:
Validate authenticity of the product
Access detail information of the product (manufacturer date, ingredients, attributes)
Counterfeits detected frictionlessly
Resellers are directly prevented from simonizing your complete inventory.
The Synergy of Blockchain and Transparency
These technologies are synergistic:
Blockchain Delivers:
Total visibility of the supply chain
Immutable digital records of all transactions
Unalterable history of the product
Amazon Transparency Delivers:
Protection at unit level
Verification from Amazon’s warehouses
Authentication at user level
Thus, no value is left behind in losing the complete authenticity protection for critical products.
Illustration:
Let’s take the example of a skin care company; it could retain product formulas, batch numbers, and packaging dates in blockchain systems, and have Transparency document all packaging units of deliveries. The customers subsequently receive the maximum assurance.
High-Risk Amazon Categories That Benefit Most
High-risk perishable items also lose a significant amount of money & gain a significant amount of negative reputation for Amazon.
Electronics (phones, smartwatches, audio devices) lose a negative reputation due to hijacking
Skincare and beauty products lose money for Amazon and gain a negative reputation due to hijacking
Nutritional supplements lose a negative reputation due to hijacking
Luxury accessories lose money for Amazon and gain a negative reputation due to hijacking
Jewelry and watches lose money for Amazon and gain a negative reputation due to hijacking
Designer clothing and handbags lose money for Amazon and gain a negative reputation due to hijacking
Automotive parts lose a negative reputation due to hijacking
Premium kitchen appliances lose money for Amazon and gain a negative reputation due to hijacking
Collectibles and limited editions lose money for Amazon and hijacking and gain a negative reputation due to fraud
These perishable and easy to counterfeit and hijack items from Amazon create a fraud defense system for counterfeiters.
How Amazon Sellers Can Implement Blockchain Authentication
Step 1: Assess Blockchain Platform Options
Vechain, Sap Blockchain, IBM Food Trust, Oracle Blockchain, and Propriety brand blockchain systems
Weigh the costs, scalability, and ease of integration.
Step 2: Record Product Data on the Blockchain
Complete the form per field with minimal addition of details.
Product ID
Serial Number
Factory Information
Batch
Packaging Date
Shipment Transit History
Step 3: Register Product Unique Identifiers
How to bypass the blockchain record will be small single units.
Step 4: Modify Amazon FBA Supply Chain to Link Data
To the blockchain record on needed to include Packaging, Insert cards, Amazon Transparency, and FBA Shipment plan
Step 5: Customer Instructions
Scan to Verify Authenticity
Powered by Blockchain Verification
To gain trust, Use A+ Content, product inserts, and brand stories
Customer Benefits
Peace of Mind
Customers can be at ease, knowing they will receive a legitimate item.
Transparency
Customers have visibility into how and where the product was manufactured.
Safety
Authenticity critically matters for safety, and this is particularly the case for health and beauty products.
Trustworthy Shopping Experience
Customers are able to perceive brands that incorporate blockchain as trustworthy and of a higher caliber.
Sales and Reputation Effect
Incorporating blockchain and Transparency will improve your Amazon business.
Increased Revenue
Customers are more likely to purchase. Trust is particularly essential in beauty, electronics, and supplement products.
Increased Positive Feedback and Decreased Complaints
Your reviews will be more favorable and your ratings will improve due to a decrease in concerns regarding product authenticity.
Enhanced Brand Reputation
Supply-chain based blockers will protect your brand from counterfeiters and hijackers.
Increased Market Share
Adopting blockchain visibility before other competitors gives you the advantage of early market entry.
Final Thoughts
E-commerce in the Amazon Transparency Program will use blockchain technology to improve how authenticity is verified. Companies need to adopt more advanced counterfeit detection to protect consumers and brand image, as counterfeit products are more prevalent now than ever. Blockchain Technology with Transparency Program provides visibility in the entire supply chain as it provides verified units for Amazon.
In categories where the product’s authenticity is critical, it helps sellers protect their listings, improve brand loyalty, and increase trust. This is particularly beneficial for high-value products.
Investing in blockchain verification is building trust and credibility for sellers for the future premium branding.
Q&A Section
1. What is product authentication in blockchain technology?
A digital record for each product is created which is tracked on an immutable and secure blockchain making products counterfeit proof.
2. Do Amazon sellers need blockchain?
It is not mandatory across the board, however, it is highly recommended for high and high risk value categories such as electronics, supplements, beauty and luxury.
3. Are there Amazon blockchain services?
No is the answer. Amazon Transparency Program integrates with the blockchain authenticity systems utilized by brands.
4. What is the Transparency Program by Amazon?
Amazon’s program in which each product unit is assigned a unique code that Amazon scans and verifies in order to prevent counterfeit copies from reaching consumers.
5. Can customers verify the blockchain authenticity?
Yes, customers can validate transparency blockchain authenticity proof via QR codes, NFC chips and transparency codes.
6. In what way can blockchain prevent hijackers?
Amazon can automatically block hijackers who try to bypass the system by attaching fake units with genuine blockchain or transparency codes.
7. Is blockchain too expensive for small sellers?
It depends. Some sellers can afford plans depending on usage. Sellers with high values usually get more than enough to cover their costs through losses on counterfeiting.
8. Will there be more sales with blockchain?
There are increased sales. Conversion rates improve with more confidence from customers when they can verify authenticity.
9. Can all products on Amazon stop being fake with blockchain?
Nothing is 100% but counterfeiting risks are lowered significantly with transparency and blockchain.
10. Do all new brands need to adopt blockchain technology?
If brands are in high-value and sensitive or fast changing categories, they benefit from adopting it earlier for sure in blockchain technology.
