Situation

A vendor in the Home and Kitchen category was encountering counterfeit product on several products sold on Amazon.com. Not only were there counterfeit offers in the buy box, there was a lack of control over price, content and loss of sales with 40+ 3rd party offers on the buy box. Quality of product reviews were diminishing due to customers receiving counterfeit product.

Recommendation

OMNI identified an opportunity to enroll these products in the Transparency program with Amazon. The transparency program is an item-level tracing service that protects your brand from counterfeit. Vendors and Sellers can enroll product into transparency by stickering a unique Amazon generated QR code to each unit. Amazon FCs scan Transparency codes to ensure authentic units are shipped to customers. We selected two products that had low buy box win rates as a trial to ensure this program would be beneficial for our products.

Outcome

The data points below show changes from July 2018 to August 2018.

QR Code Scan Start Date:
Product A: June 18th
Product B: July 25th

Offer Count:
Product A: 41 offers to 3 offers
Product B: 28 offers to 4 offers

Retail Price:
Product A: $38.39 to $49.50
Product B: $34.55 to $40.50

Shipped COGS:
Product A: up 51%
Product B: peaked at +43% temporarily; no change