Get All Access for $5/mo

Amazon Is Cracking Down on Counterfeit Goods Apparently by levying a sizeable fee to merchants and requiring loads of proof that the products are legit.

By Timothy J. Seppala

This story originally appeared on Engadget

Shutterstock

Amazon is cracking down on more than just counterfeit reviews -- the ecommerce juggernaut is waging a war against fugazi products, too. In order to sell Adidas, Asics, Hasbro, Nike and Samsung products, Amazon is asking for a $1,000 to $1,500 fee and a surfeit of paperwork according to CNBC.

One of the publication's anonymous sources provided a screenshot of the submission process for Samsung. The requirements? An invoice no more than 90 days old showing the purchase of at least 30 items, with at least five different products across the invoices.

The reaction from sellers has been understandably fraught, with many saying it's going to cut directly into their bottom line. For its part, Amazon says that the change here is to protect customers and make sure they aren't burned by a bad purchase.

"We want customers to be able to shop with confidence on Amazon," a spokesperson said to CNBC. "For certain products and categories, Amazon requires additional performance checks, other qualification requirements and fees."

If that means fewer people wind up with knock-off goods, as a customer, it's hard to complain. Just ask basically anyone who's shopped on Alibaba. But! This will have an impact on smaller merchants, creating a schism between bigger sellers that can afford the fee and those who cannot.

If this goes more widespread beyond things like running shoes or TVs and into smaller items like music and kitchen items, for example, it's possible we could see less selection, higher prices and fewer sellers overall on the digital emporium.

Timothy J. Seppala is an associate editor for Engadget.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Find Success

How I Redefined My Success as an Entrepreneur With These 3 Questions

Success is such an arbitrary concept. It looks different for everyone. For me, these 3 questions helped redefine what I wanted from my business, and what it would take for me to feel truly successful.

Starting a Business

He Founded a Company That Was Acquired By Angie and Now He Is Disrupting CPG. Here Are This CEO's Strategies for Innovating and Scaling.

From building the home services platform company Handy to revolutionizing the consumer goods industry with Keychain, Oisin Hanrahan has mastered the art of scaling companies.

Business News

Disney Is Ditching Slack After 44 Million Messages Were Leaked, Spilling Company Secrets

Disney has decided to stop Slacking while employees weigh a possible move to Microsoft Teams.

Fundraising

A Bad VC Deal Destroyed My Multimillion-Dollar Company. Here's What I Wish I Knew Before I Signed.

These are the lessons I learned from working with — and getting screwed by — the wrong VC.

Money & Finance

Minority Entrepreneurs Face More Economic Disparities — and More Money Trauma. Here's How to Stop the Silent Struggle With Financial PTSD.

Also called "financial PTSD," it affects many entrepreneurs, especially in Black and brown communities where we have added layers of economic disparity. The good news is that here is the exact way you can overcome it.

Starting a Business

This 31-Year-Old Left Harvard to Help His Mom and Built a $25 Million Nutrition Business

How Sam Faycurry's family side hustle blossomed into Fay, a personalized nutrition counseling service.