Counterfeits are a nightmare for both sellers and buyers. They tarnish brands, trick customers, and often leave a bad taste all around.

How Commingled Inventories Impact Your Sales

Amazon’s commingled inventory system combines identical products from different sellers into shared bins, using manufacturer barcodes for tracking instead of seller-specific labels. This makes it easier for counterfeit items to sneak in, as fake products sharing the same barcode as real ones can blend right in. Still, Amazon can track each unit back to its source through those barcodes, so if counterfeits are flagged, they can jump in and quarantine the suspect stock. To avoid this, sellers can opt for non-commingled inventory, which uses Amazon FNSKU labels and keeps their products separate from everyone else’s.

Legal Consequences That Can Shut Down Your Business

Amazon’s hardline approach to counterfeit products can hit fast, suspending your account and cutting off your sales and revenue without warning. Once suspended, your inventory gets tagged as "unfulfillable," and after 60 days, Amazon might just destroy it, all while still charging you storage fees. The Counterfeit Crimes Unit doesn’t play around, and they’re known for slapping hefty fines on sellers—sometimes over $1 million. Brand owners can also take matters into their own hands via Amazon’s Brand Registry, leading to more legal headaches and penalties for anyone caught violating intellectual property rights.

Detection Methods Amazon Uses to Find Fake Products

Amazon's Counterfeit Crimes Unit (CCU) has taken down over 21,000 bad actors through legal action and criminal referrals, while removing more than 7 million counterfeit products in 2023. With machine learning and two decades of fraud-busting experience, Amazon’s system automatically flags suspicious activities and tailors its fraud models to fit each business's unique data. The CCU doesn’t just work alone. They team up with brands and law enforcement worldwide to raid, seize counterfeit goods, and break up global counterfeiting networks at their roots. Amazon’s automated systems dig into transaction data, email addresses, IPs, and phone numbers to build fraud detection models, which are then exposed via API for quick action. When counterfeit items pop up, Amazon moves fast—sidelines inventory, kicks off investigations, and teams up with the IPR Center to keep fakes out of the U.S. supply chain.

Steps to Protect Your Amazon Business From Counterfeits
Amazon's Brand Registry provides trademark protection, lets you control your listings, and enhances content features. It also gives you the tools to report IP violations and track protection metrics in real time. Manufacturing certificates, quality control reports, and supply chain records help establish your products' authenticity and combat counterfeit claims. With secure tracking systems—RFID tags, barcodes, and cloud platforms—Amazon ensures your inventory is sourced properly and keeps unauthorized products from slipping through. Daily monitoring of listings, customer feedback, and sales patterns quickly identifies potential counterfeit issues, alongside regular audits and automated fraud detection.

Quick Guide to Report Counterfeit Products Successfully

Amazon’s "Report a Violation" tool lets brand owners flag counterfeit products directly through the Brand Registry portal. Just pick "Trademark concerns" and "product is counterfeit." You’ll need to upload trademark certificates, product info, and clear proof—like comparison photos showing the real product next to the fake one. Amazon typically responds within 1-3 business days, but more complex cases might take a little longer. If your report gets rejected, no worries. Just resubmit it with extra details and clearer evidence.

Best Practices for Managing Customer Returns Due to Counterfeits

When inspecting returned items, sellers should carefully check under bright light, looking for authentic packaging, the right serial numbers, and any signs of a counterfeit. If it's a fake, don’t wait—process that refund ASAP. Be sure to keep all the evidence, like photos and customer messages, for your records. Make sure customers provide their original order number, clear photos of the item, and a description of why they think it’s counterfeit.

Conclusion

Protecting your brand is an ongoing fight, but it’s one that pays off. Keeping your customers' trust is everything, and staying on top of the Amazon policy for sellers can make all the difference.