Last week’s blog post was full of bad news. Used media sellers can get suspended for inauthentic claims, UPC codes that don’t match the brand will be flagged for inauthentic – a huge source of heartburn for those who make product bundles or who use their own UPC codes for branded products that seemingly don’t have UPC codes. This week I tried to get some clarification from Amazon and other sources. Here’s my answers to your questions.
Q. Does Amazon Want Us To Buy Our UPC Codes From GS1?
Yes. They recommend it. But, to be clear, these are UPC codes for YOUR BRANDED PRODUCTS. In other words, if you are selling Cynthia’s Amazing Birthday Boxes which has toys and candies in it, you should register your brand and then buy a GS1 UPC code for it. If you are selling a FROZEN® bundle of beauty products, then you CAN’T do that. You are not Disney and you do not have the right to license their products or bundle them without permission.
In this way, we are different from most retailers. A brick and mortar store can easily take a bunch of branded items and put them into a cute container and sell them to you as a special deal (buy a towel, get a free washcloth and rubber ducky!). If they need a code for the check-out kid to scan, they use an internal code system. The GS1 is a huge database that uniquely identifies your brand in the global supply chain. If you don’t own a brand, you don’t use their codes. It is as simple as that.
If you are a private label seller, then getting a GS1 extension definitely makes sense – although it is not required – because it will be easier for Amazon to help you defend your listings for those who might create bundles or offer for sale your products in some unauthorized way. You can prove you own the GS1 for your brand and Amazon can easily confirm it.
Q. What If I Already Have UPC Codes From Somewhere Else?
Those UPC codes should still be OK as long as you are using them for your own unique bundles and NOT someone else’s brand. What Amazon is doing is checking all UPC codes against the GS1 database. Their concern is for brands. So if you are selling a Disney bundle without a Disney UPC extension and/or code, then they will shut you down because your code is invalid. If you are selling your own brand using a UPC code purchased elsewhere, that’s OK.
Q. What Is The GS1? Does It Give Us Authorized UPC Codes?
Not exactly. GS1 is three things: 1) a huge database of branded product extensions (the unique digits that identify each brand) that you can search; 2) a system that helps you generate and manage your own UPC codes; and 3) an annual subscription for as long as you want your brands in their database.
Think about it this way, if you want to be able to generate and manage 100-100,000 UPC codes (like many apparel companies with all their size and color variations for example), you don’t want to buy someone else’s UPC codes, you want to manage your own. You can make the numbers actually mean something internally rather than being random. You can tell immediately what the item is just from the numbers in the UPC code. In addition, you can track where it came from and when – critical to food manufacturers who have to be able to instantly recall tainted food or drug manufacturers with tampering scares. The GS1 also provides proof of brand ownership and makes it easy to tell if someone has added their own UPC code to your brand…which is what Amazon is doing now.
Q. If I’m Able To Buy A UPC Code With The Same Extension As The Brand I Want Is That OK?
Absolutely not! It is not only illegal, Amazon would likely ban you from the platform without an appeal. Then you would have to deal with the brand’s lawyers. And to the person who asked me how Amazon would find out (c’mon! really?!), you need to know that the big brands have given Amazon a full list of their UPC codes and continue to do so as they add new products. Amazon is not just checking their extensions. See answer below for many of these brands (not necessarily comprehensive).
Q. Does This Mean We Can’t Create Bundles From Others’ Branded Products?
Yes…and not exactly. If you read one part of SellerCentral, it makes it sound like it is fine to create bundles and use your own UPC codes. If you read another part, it indicates that your bundles may be closed by Amazon as inauthentic. Here is the difference. You can create bundles, but NOT branded bundles (unless you own that brand). So if you want to put together some cute Disney bath items you can, BUT you can’t call it a Disney bundle. It would be: Bundle: Shampoo, Conditioner, Bath Poof, Princess-themed. In the DESCRIPTION for the bundle you can mention that it is Disney Princess® Shampoo, conditioner, etc. But not in the title. In addition, you would NOT put Disney as the manufacturer. You are the manufacturer. Put your brand: Cynthia’s Amazing Bathing Supplies. Attach your UPC code that you bought from GS1.
Q. Can We Get An Exemption From Needing A UPC Code?
Yes. You can get exemptions in certain situations. If your bundle is eligible for an exemption, then you don’t need a UPC code. The trick is to get the exemption first before making a bundle or listing a product. PS. A GTIN is a Global Trade Item Number which includes UPCs, ISBN, EAN and other product identification numbers (because UPC wasn’t enough of an acronym…).
ELIGIBLE CASES FOR GTIN EXEMPTION
- Brand, manufacturer or publisher does not provide a GTIN for the products. For example, private label products, or hand-made products
- Non-branded products that do not have GTINs. For example, wholesale products
- Parts do not have a GTIN. For example, some automotive parts do not have a GTIN
- Bundles that do not have a GTIN. For example, customized bundles may not have a GTIN. So if your bundle has a customized element like a person’s name, then you can possibly get an exemption. To create bundles correctly, see Product Bundling Policy before requesting for a GTIN Exemption
Q. How Do I Get An Exemption?
You need to prepare your case for Amazon. You will need:
- A support letter from the brand owner, manufacturer or publisher to prove that they do not provide a GTIN for the products or a list of sample products for Amazon to review. The letter has to have the issuer’s name and contact information and state explicitly that they do not provide a GTIN for all the products that you sell. It must include your physical address, phone number, email or website address. It must be in English or the marketplace’s local language.
- A website link to view the products. If there is no website, upload pictures to an online image service or Snagit or Google Docs with a link.
Here’s a link to a template Amazon recommends for the support letter: http://screencast.com/t/zJ4GNZuVaY
If you can’t get a support letter, you should submit a list of sample products for them to review using this template. Please note that if your bundles consist of products from the same brand, then use this template. If they are non-branded products, use this template:
Then you apply here.
We’re saved! Bundles galore! Oh wait, it surely isn’t that easy is it? Nope. Because some brands require a GTIN to list. No exemptions. Any ASIN that belongs to any of these brands and does not have a GTIN will be suppressed.
Q. Does Amazon Give Us The List Of Branded Products That Require UPC Codes?
Yes. Glad you asked! If you desire a UPC exemption in a category, make sure the brand of the item is not included in one of the following lists of major brands that require a UPC. My assumption is that these are the brands that have given Amazon their complete lists of UPC codes, BUT I would not rely on it to be comprehensive. I’m sure new brands are being added every day:
- Baby Brands
- Beauty Major Brands
- Clothing, Accessories & Luggage Brands
- Health & Personal Care Major Brands
- Sports & Outdoors UPC Required Brands
- List of All Brands Requiring UPCs
Q. Disney Is One Of The Brands That Requires UPC Codes. Does This Mean I Can’t Create A Bundle With Disney Products?
You can create a bundle but you can’t list Disney as the manufacturer and you can’t mention them in the title. Preferably you would have your own brand of gift bundles and list it under that. See my answer above.
In food it is clear. I can create a box of goodies from a mixture of brands and brand/label the product as mine (Cynthia’s Excellent Nibblies). If I want to create a multipack of Jelly Belly’s, I can’t. Only the manufacturer can. If I want to private label the Jelly Belly’s and take a 10lb bag and break it out into 10 1-lb bags I can as long as it is follows the health laws and is a private label product. If I want a 3-pack of three different kinds of retail box Jelly Belly’s I can do that. Wait, did I say food was clear? Sigh.
You’ll notice that none of the lists Amazon gave us includes food. I suspect this is because their rules were already set a year ago under grocery category restrictions. You can create food gift boxes with branded items to your heart’s desire as long as the bundle is under your brand.
Q. I Have Lots Of Bundled Products On Amazon. What Should I Do Now?
- Change the titles. Take out the name of the brands.
Instead of “Disney Cars® Conditioner and Shampoo Bundle,” call it “Boys Conditioner and Shampoo Bundle.
- You can still name the brands in the listing details or keywords
- Change the brand name/manufacturer to your brand
- Brand your bundle. Cynthia’s Boys Bathtime Fun Pack ¬– Conditioner and Shampoo Bundle
- Or, take your listings down if you are worried about getting caught with an invalid UPC code.
Q. What If I Can’t Change The Listing?
If the listing was created by the brand and you just listed against it, you are fine. If this is a listing you created yourself, you can change it. If this is a listing created by another seller, you should be able to change it unless they brand registered it. In that case, they need to change it. You can check the UPC against the GS1 to see if it matches the brand. If it doesn’t, you may want to close your listing until things get sorted out or until you can create your own listing that complies with the new reality. Obviously, if the listing is already compliant you don’t need to worry about it.
Q. If I Can’t Use The Brand Name In My Listing, It Won’t Sell!
Not exactly a question, but my answer is to put the brands in your description or keywords and make sure you have awesome pictures that follow Amazon style guidelines. In this way, your picture will hopefully be enticing enough for a buyer to open your listing and see the details on your bundle. If your items have a particular scent or flavor, you may be able to use that in your title even if you can’t use the brand. Neutrogena Rainbath Pear and Green Tea Shower and Bath Gel is trademarked but “Bundle – Shower and Bath Gel plus Shampoo and Body Lotion in Pear and Green Tea Scent” isn’t. You’ll have Neutrogena in the description or keywords and the picture. It should sell. Naturally if someone else has a similar bundle and they have not converted their listing to comply they may be higher on the search page than you because their bundle is more relevant.
Only you can decide how much risk you can live with. Amazon WILL get around to every bundle eventually.
Q. Is There Some Way Around This So Amazon Won’t Catch Me?
Gaming the system will make it worse for everyone by forcing Amazon to crack down on the brand registry to make it harder to cheat. Stop thinking this way. Focus on how you can comply vs how to get around the rules.
Q. What Are The Disadvantages To Creating Branded Bundles On Amazon?
- You don’t own the bundle. If the Brand decides to sell on Amazon as a seller, they will automatically have control of YOUR listing. They can change it or take it down at will. Once brands realize this, many will become “sellers” on Amazon so they can take over listings they don’t like. Think about that. If Neutrogena starts to sell on Amazon? Say bye-bye to your bundle.
- Amazon will catch you if the UPC code is invalid.
Q. Is There A Safe Way To Create Bundles On Amazon?
I can never use the word “safe” with Amazon, but it seems like you can protect yourself if you follow these rules:
- Don’t put brands in your titles unless you own the brand
- Create your own branded bundle: Cynthia’s Bathtime Fun Pack vs. Disney Cars® Conditioner & Shampoo Bundle
- Create a FREE bonus or FREE gift. i.e. Disney Cars Shampoo + FREE Conditioner. This allows you to use the manufacturer’s UPC for the shampoo and yet create a bundle. It is one way to avoid the issues with UPC codes. This loophole will probably be shut down eventually.
Q. Amazon Hasn’t Sent Me Any Notifications. Does That Mean My Bundles Are OK?
No. It just means it will take Amazon a while to catch everyone. I expect this to be a long process.
Q. Will Amazon Grant Amnesty To Sellers?
Hah ha ha ha ha ha ha! Thanks for the laugh. Probably not. They only do that when they feel that something is their fault. They never feel that.
Q. What About Bundles That Are Already Up There? Are They OK?
Not if they are using an inauthentic UPC code. It is just a matter of time. I strongly urge sellers to fix their bundle listings NOW. Let’s put it this way, this next week is your amnesty. Use it wisely.
Q. What If Amazon Suspends Me For My Bundles?
Call us. 972-432-6398. Http://onlinesalesstepbystep.com/reinstatementfaq. While it is no comfort to you today, your experience will help other sellers.
Last Word About UPC Codes…For Now
Use your common sense. If you are looking at a familiar brand and want to create a bundle with it, it is probably registered with the GS1. If it isn’t, you are OK for now…but what about tomorrow when that brand registers? It is safer to not use brand names in your bundles. You can check the GS1 database if you really want to, OR create bundles that don’t list the brand as the manufacturer and that aren’t listed in the title.
More About USED Items with Inauthentic Claims
Q. Is Amazon Requiring That We Prove Authenticity For ALL Items Whether NEW Or USED?
Technically, they only require we prove authenticity for items where there has been an accusation of counterfeit or inauthenticity…which means, YES. If you can’t prove authenticity when they ask you, you’re in trouble. You can recover from it once (assuming you don’t have a lot of problems with authenticity already in your NEW items), but that’s it. After that, you can’t afford one more claim where you can’t prove where you bought it. Counterfeit is counterfeit, stolen is stolen.
Q. Will They Actually Suspend You For Inauthentic USED Media?
Yes. My client sold a USED CD that got him shut down. I know I already answered both these questions last time, but many sellers are staggering around like deer in a headlight right now and I’ve been asked several times if it is really true.
Q. I Have A Lot Of USED Inventory At Amazon That I Bought At Book And Estate Sales. What Should I Do?
So do I. My client had to remove all of his. Some of it he is selling on eBay, etc. This is a risk assessment you have to take for yourself. You can sell out of what you have and don’t buy any more where you can’t get a detailed, printed receipt (no hand-written ones), you can get rid of everything, or you can play the odds. CDs, DVDs and video games are much more likely to be counterfeit/bootleg. There are also counterfeit textbooks.
Q. What About Collectibles Like Collectible Games And Toys?
I’ve not seen anyone suspended yet for inauthentic collectibles…but it could happen. As Amazon said to us “counterfeit is counterfeit, stolen is stolen.” If they have a reason to believe that your rare game from the 1950’s is a fake, you’re in trouble if you bought it at an estate sale. This is very upsetting to me. I have a LOT of collectible games and puzzles on Amazon that I bought at estate sales for cash. I’m leaving mine up there for now but I won’t buy any new ones.
Also, one thing I’ve seen with collectible games/toys that is already against policy but which I think will really get sellers in trouble now is when they substitute parts for games that are missing pieces. If you can’t find the original piece, DON’T substitute something similar from another game. That is against Amazon policy AND very likely to lead to claims of fake, inauthentic, missing pieces, incomplete, etc.
Q. What About Refurbs?
If you bought your refurbished item (here I am referencing factory refurbs, not YOU re-conditioning an item) from a legit source, you should have an invoice or receipt and be OK. If you didn’t buy from a retail store or direct from the manufacturer with a factory warranty, then you can’t list it as a refurb in the first place. It’s used but not a refurb. Secondly, if you can’t provide an invoice or receipt, you will be in trouble if it is questioned as inauthentic.
Last Word On USED Media…For Now
We’ve not gotten my client reinstated yet. This part of the story is still unknown. Amazon is dead set that the CD was a bootleg which means that it should have been obvious to my client when he bought it that this was not a legitimate CD. Possibly it was recorded in secret (a “Live!” performance). I don’t know. Counterfeit and Inauthentic claims are mostly about perception. The buyer thinks there is something wrong for a reason. Fix the reason and you’ll stop getting complaints. In the case of USED media buyers, we need to be very careful about what we buy that it looks legit and put stuff down that seems a bit “off” for any reason. Sometimes the claims come from the rights holder. They KNOW it is a fake but the seller may have been fooled. In the case of this CD, it is possible that the symphony KNOWS they never made a CD so it has to be counterfeit. In either case, you can’t argue with Amazon, you can only confess and repent. Put together a plan that tells Amazon how you will ensure it never happens again.
Springtime in New York…
My business partner Lesley Hensell and I will be in New York next week. I’m speaking at the Feedvisor conference, we’re working with some of our clients and we’re hosting a special event Wednesday night for our clients and friends of the company at the Reserve Cut Kosher restaurant in lower Manhattan – one of the best steakhouses in the city with fabulous atmosphere and great reviews. We are very excited to eat something extraordinary while in the Big Apple. If you are in the area I hope that you will join us! Please sign up now, we have to give the restaurant our final numbers by the end of the day Monday.