Observed Signal · Apr 27, 2020 · Technical Release · Source: OnlineMarketing.de · Impact: 2/5 · Sentiment: Neutral
Amazon tests video calls to verify new sellers
Amazon is testing a video-conference-based verification process for new sellers on its marketplace to curb product fraud and protect major brands from counterfeit listings. The pilot, reported by Reuters, includes more than 1,000 brands applying to sell in the US, China, Japan, and the United Kingdom. The test was prompted by long-standing concerns about counterfeit goods, with Nike having previously accused Amazon of inadequate action against product piracy and reportedly halting its direct selling on the platform in 2019. The program’s checks are designed to verify seller legitimacy and are intended to include in-person meetings when possible; however, the COVID-19 pandemic has shifted the process entirely to video calls. Amazon indicated brands’ concerns are being addressed and suggested that the verification hurdles could increase for sellers if the pilot proves effective, though results remain to be seen.
Moderate impact; pilot for seller verification to reduce fraud on Amazon's marketplace
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Key Takeaways & Evidence Grounding
- Reuters reports Amazon is piloting video-conference seller verification for new Merchants.
- Pilot includes over 1,000 brands applying to sell on Amazon from the US, China, Japan and the UK.
- The test aims to reduce product-fraud and counterfeit listings on Amazon's marketplace.
- Nike previously accused Amazon of not doing enough against product piracy and halted direct selling in 2019.
- Originally planned in-person checks; the pandemic shifted verification entirely to video calls during the pilot.
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