Amazon makes move to protect brands online

Online retailer Amazon has revealed a new strategy to help protect brands from counterfeiting in the US.

Sellers on Amazon.com will now be charged a one-time, undisclosed fee if they decide to sell particular branded goods online. The process began rolling out on August 22.

Erik Fairleigh, Amazon spokesperson, said: “If a seller is already selling brands on Amazon that are now subject to a fee, they are not required to pay a fee to continue selling those brands. The fee applies to new sellers of particular brands. Sellers can see whether a product requires a fee to sell when you search for that product using the ‘Add a Product’ tool.”

The purpose of the fee is to discourage bad sellers from listing inauthentic items, which should decrease competition for good sellers.

“We want customers to be able to shop with confidence on Amazon. We consider several factors when determining qualifications and criteria to sell certain products,” said Fairleigh.

“For certain products and categories, Amazon requires additional performance checks, other qualification requirements, and fees.”

In July, sandal maker Birkenstock made the decision to remove its products from Amazon in the US in an apparent protest against “unacceptable business practices” which, Birkenstock stated, jeopardised its brand.

From January 1, 2017, the footwear company will no longer supply its products for Amazon to sell online. Additionally, it will not authorise any third party merchants to sell on the marketplace section of the online retailer.