Imagine spending months developing a best-selling product, only to see it suddenly appear in other sellers' stores at lower prices while their sales skyrocket. This phenomenon of product hijacking has become increasingly common on Amazon, keeping countless sellers awake at night. What makes this practice so rampant, and how can sellers effectively protect themselves?
Amazon Hijacking: A Gray Area Within the Rules
The issue of product hijacking on Amazon has long been a contentious topic among sellers. On one hand, it's viewed as unfair competition that steals other sellers' hard work and can lead to negative reviews that damage brand reputation. On the other hand, Amazon's platform actually allows this practice as a legitimate listing method, where sellers don't need to create new product pages but can sell existing items by providing relevant information.
This mechanism lowers the entry barrier for new sellers but also creates opportunities for malicious hijacking. It's important to note that product hijacking isn't automatically considered infringement. Only when brand owners can prove that hijacking violates their trademarks, copyrights, or patents can they potentially succeed in removing listings through Amazon's reporting system. However, this process is often time-consuming and ineffective at stopping the practice.
Amazon has implemented an "application to sell" requirement as a gatekeeper measure, forcing sellers to obtain approval before listing certain products. However, this system contains loopholes that unscrupulous actors frequently exploit.
The Invoice Scam: How Hijackers Bypass Amazon's Controls
One seller recently shared their experience of having their product listing hijacked, baffled by how the perpetrator circumvented Amazon's "application to sell" requirement. The community pointed out that obtaining approval isn't difficult - all that's needed is an invoice. Some bad actors exploit this vulnerability by submitting forged or purchased fake invoices to gain unauthorized selling privileges.
Hijackers typically use two main methods:
1. Shared Suppliers: Hijackers may source from the same suppliers as legitimate sellers, allowing them to offer nearly identical products. This makes infringement claims difficult to prove.
2. Fake Invoices: Some hijackers create or purchase counterfeit invoices to pose as authorized suppliers, obtaining Amazon's selling approval through deception. This practice severely disrupts market fairness and harms legitimate sellers.
Protecting Your Business: Multi-Layered Defense Strategies
Faced with growing hijacking threats, sellers must take proactive measures to build comprehensive protection:
1. Brand Registry and Zero Tolerance: Brand registration is fundamental. Amazon's "Self-Service Counterfeit Removal Tool" lets registered brands remove counterfeit listings without waiting for Amazon's review.
2. Transparency Program: Amazon's Transparency Program assigns unique codes to products. During warehouse intake, Amazon scans these codes to prevent unauthorized products from entering inventory.
3. Legal Action: When hijacking violates intellectual property rights, sellers can pursue legal remedies. While costly, lawsuits serve as powerful deterrents against serious infringements.
4. Product Differentiation: Beyond protective measures, sellers should enhance product competitiveness through quality improvements, customer service excellence, and innovative designs. Unique value propositions help withstand hijacking pressures.
5. Continuous Monitoring: Regular listing surveillance allows prompt reporting of hijacking with supporting evidence. Quick action helps contain damage and protect business interests.
Amazon hijacking presents a complex challenge requiring cooperation between sellers, the platform, and regulators. By implementing robust protections while advocating for systemic improvements, sellers can help maintain a fair and healthy e-commerce ecosystem.