That Amazon has long launched an aggressive campaign against unauthorized sellers is nothing new. Just as, ultimately, the trend toward increasingly strict brand controls is not new either, with listings being deactivated without notice when deemed necessary.
This strategy responds to growing concerns about third-party sellers, like those recently expressed by Nintendo (we discussed it here), which pulled its products from the platform after discovering that sellers were importing discounted stock from Southeast Asia to sell below market value in the U.S.
Well, Amazon appears to have further tightened its controls, with a crackdown that marks a clear shift in approach. While previously Amazon seemed mostly focused on maximizing the product offering for its end customers, today it seems intent on taking action to better protect brand integrity.
So much so that the new restrictions do not even spare long-time and previously approved sellers, with an evolution that has immediately created tensions within the seller community, many of whom suddenly find themselves excluded from product categories they had been serving for years.
The LEGO Case
An interesting example is the mass deactivation of LEGO listings. Products from the famous Danish brand were removed simultaneously in the U.S. for all sellers with active offers. And the confusion caused in the Seller Central community was not minor. Amazon justified the action by citing violations of its ASIN creation policy and explained that the platform now limits the creation of new product codes for brands enrolled in the Brand Registry.
The decision particularly impacted sellers specializing in discontinued products, which are popular in the used goods market. Even those who had previously obtained approval to sell LEGO suddenly lost their listing privileges.
>>> You can also read our Practical Guide to Amazon’s Daily Sales Log <<<
The New Brand Registry Rules
Among the actions introduced by the marketplace, we note that Amazon has significantly strengthened restrictions related to the Brand Registry. It now requires a verified connection to the brand to sell certain products. Approval is no longer permanent. The platform therefore reserves the right to revoke selling privileges at any time. The stricter policy particularly applies to products no longer actively offered by the brand, thus creating significant barriers for sellers of discontinued items.
Effectively, sellers not directly connected to the brand owner via the registry can no longer create or relist discontinued products. This marks a sharp departure from the previous policy, where historic approval guaranteed continuous access to brand inventory.
As expected, such a decision is prompting many sellers to reassess their sourcing strategies. And many have sought expert support from specialized agencies. The goal is, clearly, to navigate Brand Registry rules more effectively.
>> Also read our article European Manufacturing Hubs: Which Are Best for Your Sourcing? <<<
The Impact of Fraud
It is also clear that this tightening is a result of increasing fraud (both attempted and successful) in e-commerce. As a consequence, Amazon is seeking to enforce increasingly restrictive policies against unauthorized sellers.
The types of fraud raising the most concern include:
- remote access attacks (up 8% during peak sales)
- card testing fraud affecting low-value digital transactions
- loyalty program abuse that makes some accounts up to seven times more vulnerable
Fake accounts, often created by organized fraud rings, still account for 90% of abuse cases.
>>> Also read our guide Inventory Management on Amazon: A Guide to Warehouse Optimization <<<
How to Adapt to Amazon’s New Policies
To address the growing fraud risks, Amazon is implementing dynamic risk assessments across all operational areas, from checkout to supply chain.
In this context, the marketplace is pushing for the use of AI-based fraud detection tools. These new tools allow for real-time monitoring and rapid response to suspicious activities.
In light of this, sellers wishing to continue operating on the platform are required to actively adapt to this new context by:
- investing in direct relationships with brands
- always obtaining complete documentation of the supply chain
It is clear that the new operational reality demands greater transparency and compliance. And thus, Amazon is pushing for greater professionalization of the sector, which could:
- eliminate casual or poorly structured operators
- guarantee greater reliability for consumers and brand partners
Time will tell if this will indeed be the future of the platform.
Vedremo se sarà effettivamente questo il futuro della piattaforma.
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