Amazon’s Plan To Fight Counterfeiters Will Cost Legit Sellers A Ton
Amazon.com is taking steps to protect big brands after a recent surge in counterfeiting, and many rule-abiding sellers are paying the price. Online stores that want to sell brands like Nike, Adidas and Hasbro are being told they have to pay a one-time nonrefundable fee of up to $1,500 per brand, according to interviews with multiple sellers. That’s after being asked to provide invoices from manufacturers or distributors that show the purchase of 30 items within the last 90 days. The process, which started rolling out selectively last week, is called “brand gating,” and it amounts to a big toll for sellers. There will be plenty of detractors in the low-margin and highly competitive business of e-commerce. But it’s a sign that Amazon, which dominates online commerce in the U.S., is taking counterfeit selling seriously. The site is making it significantly harder for unauthorized merchants to flourish. See more at CNBC.
