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by phil21 3380 days ago
The problem is that it can say "Sold by Amazon" and still be co-mingled stock some third party seller tossed the same SKU on.

So there is no way to even know who the actual seller is. Amazon could end this particular fraud literally overnight by no longer co-mingling, but I suspect that would be wildly expensive for them to do.

Your method is fine for actual accounts selling scammy things - the problem is when those accounts send in product to Amazon and Amazon decides to mix it in with the legit stuff.

5 comments

Right. My bet has been that they've done the math and handling returns works out to be cheaper for them than stopping the comingling issue.

Another aspect is that it's not always obvious that you wound up with a counterfeit. I've had products where the longevity was not what I expected and when I look more closely it was in fact a fake. However by that point it isn't worth returning.

"they've done the math and handling returns works out to be cheaper for them than stopping the comingling issue..."

It may be cheaper in terms of short-term profits (which is what they can measure), but in the long run, it could be doing irreparable damage to the Amazon brand (which is much harder to measure).

I've been an Amazon customer since they first started out as an on-line bookstore, but at this point, I'm hesitant about every item I buy (even though I haven't personally been the victim of a counterfeiting scam). At this point, I'm ready to start exploring their competitors.

To your point I backed off of a purchase on Amazon today specifically because I was afraid of counterfeit. I wanted to purchase a bag in a particular color which no longer seemed to be available on the company's site nor their Amazon store. Another vendor had the bag I wanted in that color for half the price.

Perhaps it's legit. Perhaps I could have gotten what I wanted and saved $50. We'll never know.

My bet is that they do it for speed. "Hey, an identical item exists in a warehouse much closer, fast delivery means happy customer, what could possibly go wrong." That does not have to the explanation, but the commingling could be the logical outcome of tying the bonus of a really successful person to a single metric.
If they co-mingle they need to adjust there process and slap a custom tracking barcode or rfid sticker on the items when they arrive to track specifically what seller sent the item in. Then when they ship a co-mingled item, they need to scan the barcode or read the rfid chip to know who's item actually got sent. This won't address fraud by buyers claiming an illegit item though.
They could comingle and still solve the problems whenever they get stock from a seller they slap on an Amazon barcode that identifies both the UPC and the Amazon seller. That information gets included in the purchase details and when problems are identified with a product they pull those products and identify people who got the bad product. To cover the cost of that problem they can require sellers to insure their product or put down a deposit to cover the cost of a recall.
They effectively do require a deposit in case of returns in the way they pay. When you ship a product sold on Amazon they take the money immediately, but they don't pass on your cut until a few weeks later, allowing them to issue refunds if neccesary without losing anything themselves.
FBA sellers can opt-out of commingled stock. If you know an FBA seller sells authentic goods, you're better off buying from them than from Amazon.com or an unknown FBA seller. There is no way to know before buying whether an FBA seller uses commingled stock or not; it would just be a matter of recognizing the merchant from past authentic purchases or credible word of mouth.
Amazon needs to signal co-mingled and non-co-mingled stock so buyers can purchase with more certainty. The problem is Amazon doesn't want to admit to their co-mingled mess yet. It will hurt their brand admitting that there is a material difference between co-mingled and non-co-mingled stock.
If they clearly label commingled stock, they might as well call it "genuine" vs. "counterfeit." There'd be no reason to buy the commingled stock since odds are it'll be fake.
Touche. Which is also why they won't do it. And as a sibling comment says, they need to fix and get rid of co-mingling items.
Yes, I think they're going to have to disable commingling all together in the next 12 months or so. It will greatly simplify enforcement and help stop the bleeding on their reputation as a reliable marketplace.

Right now, the only option would be a third-party service which verifies and track this, but I'm sure Amazon would shut them down ASAP. It would have to be decentralized and anonymous.

Or, upon receiving goods from a seller, they could add an additional label-sticker number indicating the real provider of the goods so they could be readily tracked down, and singled out.