Amazon requires one-time deposit fee to fight counterfeit sellers

In an effort to fight counterfeit goods sold online, Amazon has introduced a new policy that will require sellers to deposit a one time non-refundable fee.

Those looking to sell products of brands such as Nike and Adidas will have to cough up $1000 to $1,500 for a single label. In addition to that, vendors must also provide proof of purchase of 30 items within the last 90 days.

Amazon's largest market is the United States, followed by Germany, the UK and Japan.

Amazon’s largest market is the United States, followed by Germany, the UK and Japan (file photo)

“We consider several factors when determining qualifications and criteria to sell certain products. For certain products and categories, Amazon requires additional performance checks, other qualification requirements and fees,” an official with Amazon clarified to EcommerceBytes .

Not only show purchase invoices from a manufacturer, sellers must also submit proof of being authorized to sell products of any leading brand.

Critics have long expressed concern over Amazon not taking stringent action and putting in place a foolproof mechanism to check the surge of fake goods.

In fact more than 40% of Amazon’s retail sales come from its Marketplace of third-party sellers. However, counterfeit products witnessed a surge only after the e-commerce giant aggressively pursued Chinese manufacturers. Reports state that sales from Chinese-based sellers doubled in 2015.

But, Amazon has its own Anti-Counterfeiting Policy that clearly states that products illegally replicated, reproduced, or manufactured, is strictly prohibited.

“We take product authenticity very seriously. It is each seller’s responsibility to source and sell only authentic products. If you sell counterfeit goods, we may immediately suspend or terminate your selling privileges and destroy inventory in our fulfillment centers without reimbursement,” the policy states.

“In addition, if we determine that a seller account has been used to engage in fraud or other illegal activity, remittances and payments may be withheld or forfeited. The sale of counterfeit goods can also lead to legal action by rights holders and civil and criminal penalties.”

In July, The Counterfeit Report had sent notifications to Amazon, eBay and Alibaba asking to remove listings for nearly 3.8 million items which it suspected of being counterfeit.

Not just e-commerce portals. According to the consumer advocacy group, social media platforms such as Facebook, Twitter and Instagram have also become popular counterfeit outlets.

The entire counterfeit goods market is said to be worth $1.7 trillion worldwide.