Amazon’s battle against counterfeiters will be put to the test on Prime Day

We’re almost there, ladies and gentlemen: the day when you can get a $450 power washer for two-thirds of the retail price.

Amazon’s annual Prime Day sale is tomorrow (and the next day), and comes at an interesting time for the company. While Amazon’s embroiled in a number of legal and regulatory headaches, this year’s Prime Day lands after cost-cutting measures including mass layoffs improved the company's balance sheet in Q1.

One of the biggest thorns in Amazon’s side has been the sale of counterfeit products, but new FTC legislation that went into effect last month works in the company’s favor.

• The INFORM Consumers Act requires third-party sellers to meet certain standards, such as at least 200 separate sales or gross revenues of $5,000 or more over 12 consecutive months within the past two years.
• Last year, Amazon blocked 800,000 attempts by “bad actors” to sell counterfeit goods; in 2021, it blocked 2.5 million counterfeit storefronts, on top of 6 million in 2020, according to the company’s Brand Protection Report released in April.

“Counterfeiters really follow the money, and they’ll counterfeit about anything, from luxury handbags to household items,” Anna Dalla Val, Amazon’s director of global brand relations, told Glossy. “The combination of our new seller vetting and holding bad actors accountable has had this deterrence effect.”

The big picture: As Retail Brew recently reported, Amazon’s Q1 was promising after it took measures to cut costs, including laying off 27,000 workers starting in November. And inflation-weary shoppers are looking for deals.

• Only 14.3% of shoppers said they plan to spend less during this year’s Prime Day, while 27% intend to spend more, according to omnichannel marketing platform Skai, which surveyed 1,000 consumers.
• Close to all (95%) of those surveyed said they’re “likely to browse or buy something” this year.