It's not a misconception - they claim to track inventory source, but I don't believe it for a second. There are warnings all over seller blogs and forums not to commingle inventory because you'll be held responsible if Amazon sends another seller's counterfeit product to a buyer on your behalf. People have experienced this en mass - including myself, I was dinged for selling a "generic" item instead of the name brand item while I actually sent in the correct name brand item. It was a Ninja blender. It seems to happen to every seller who commingles eventually.

On top of that I once sent in a box of items that was checked in twice several weeks apart. Amazon sold double the inventory I sent them on my behalf and paid me for the sales of products I never sent them. Stories of phantom inventory are common. It can get crazy - someone [1] sent in a shipment of four items and 72 were added to their inventory, which Amazon happily sold for them after checking with the fulfillment center and insisting that the inventory was correct. This sort of thing shouldn't happen if you're actually tracking inventory. Also, their system shouldn't allow a shipment to be checked in twice.

[1] http://www.orensmoneysaver.com/2016/06/turnover-tuesdays-ama...

There's lots of warnings about that, and virtually no one actually experiencing it.

Generic complaints typically come from customer complaints. Customers complain even when the product is authentic. There's nothing in your story to suggest commingling is the issue.

Phantom inventory is an issue, usually arising when someone else's units were checked into your inventory. There's always a record of that, and you should report the discrepancy to Amazon.

>virtually no one actually experiencing it

By "virtually no one" you mean "virtually everyone." Because what I described is very common. I've experienced it and I sell very little on Amazon - less than 100 sales a year. Less than 50 items a year in the past several years.

>you should report the discrepancy to Amazon.

How about you actually pay attention to people's experiences before discounting them? The author of the blog post I linked to literally reported the issue to Amazon and Amazon insisted the massive amount of inventory was theirs. It would be easy to see that it wasn't merely by looking at the weight of what was shipped (among other very obvious things...). Since they can't get their heads out of their ass enough to do that (or simply not check in the same shipment twice and double count that inventory), I'm not believing they have much inventory source tracking going on.

Amazon may think they are doing a great job tracking inventory but the facts say otherwise.

What exactly have you experienced that makes you so confident that Amazon is lying about tracking the original source of manufacturer barcode products?

I've sold millions on Amazon and am friends with many sellers who've collectively sold at least hundreds of millions. I've heard many people with issues with inauthentic complaints. I've never heard of one that can be traced back to commingling.

I've dealt with phantom inventory many times. The correct thing to do is report it. It doesn't always get fixed. The fact that they occasionally have stranded inventory and assign it to a seller doesn't mean they don't generally track transfers of manufacturer barcode inventory, like they say they do. They never claim inventory receiving is perfect. They do claim they track the original source of sales, and there's no reason to think it's not true.

Okay, so lets assume that you're correct, and they track the original source of sales. How? I have never once received a mass-produced media item (like a book or DVD) with any additional sticker, label, or other indicating device. Without that label, when a packer scans an item just before they place it in a shipping box for the customer, how do they know which seller's inventory to decrement?

Alternately, how does the picker know which item on the shelf to select to ensure they have selected the right seller's unit? Look at how amazon stores books in their warehouses:

https://www.google.com/search?q=amazon+warehouse+books&sourc...

Without a label on the book, how do they know which copy to pull from the shelf and put in the box?

I know Amazon says they track inventory, but prime shipped and sold-by-amazon.com boardgames arrive as counterfeits pretty regularly in the board game industry. You can find plenty of reports, with detailed pictures and manufacturer confirmation on BGG. There has to be something going on here, even if it may be more complicated than Amazon is commingling counterfeit and genuine articles.

>Without that label, when a packer scans an item just before they place it in a shipping box for the customer, how do they know which seller's inventory to decrement?

It's very simple: they're stored in different locations. If seller A is on shelf B, and seller C is on shelf D, then even though the individual items are identical, if you pick up a unit on shelf D you know it's from seller B.

They don't store identical products from different sellers next to each other.

I agree there's a counterfeit issue. Amazon agrees there's an issue, and actually has it as a risk factor in their financial reports. But commingling isn't a significant contributor to it.

That could work, but it's fairly brittle. If an item comes out of its location, you have no idea which seller it comes from. If an item is pulled incorrectly, and then set on the return-to-stock pile, you have no idea where to put it. Perhaps that is the issue; there are two copies, the counterfeit one gets pulled incorrectly, then when put back, they put it in the amazon.com location.

>If an item comes out of its location, you have no idea which seller it comes from.

You can check if the location it was supposed to be in is empty. From my understanding, the main issues happen during receiving; if it's received to the wrong shipment it'll be incorrectly marked in the system and unlikely to be fixed. Once it's received to the correct system everything else is fairly robust.

>If an item is pulled incorrectly, and then set on the return-to-stock pile, you have no idea where to put it.

If it's pulled, then there'd be a record of where it was pulled from, and that place would be empty.

I know they claim that, and it may be their official policy, but it obviously is not working in practice. Either that, or it's become direct fraud in their part.

And it may work to benefit Amazon in finding problematic sellers, and it may scare most legit sellers to never supply fake products.

But it doesn't seem to do anything to actually benefit sellers or buyers, at this point.

For one, I suspect resold returned items to be a major weakness of this policy. Or orders of multiple quantity with different sources, which are picked, boxed, then returned to inventory for whatever reason.

You don't see the counterfactual where Amazon didn't enforce much and counterfeiting was much more prevalent. Without knowing how much counterfeiting would take place without enforcement, you can't say enforcement is useless.

I see the other side: I was suspended after false counterfeit complaints from tp-link, and was forced to sue them in federal court. In my case, Amazon suspended me despite having provided extensive proof of authenticity, simply because the brand didn't want me to legally resell their product and was willing to lie about it.

I agree that returns are a weakness, where counterfeits can enter the supply chain. But returns are a low percentage of sales, and counterfeit returns (fraud) are a low percentage of returns. Seems like a relatively small problem.

Multiple quantity from different sellers shouldn't be combined. If they're in the same warehouse they would just ship from the same seller. I don't know for sure how Amazon handles it but again, doesn't seem like a huge problem.

I agree, we may not know the extent of the problem. But if they are tracking sources as well as they claim to be, the problem wouldn't keep growing like it is. There's a major disconnect somewhere...

And you kinda make my point. The practice is for the benefit of Amazon, not us.

(It still benefits Amazon to sell fakes already within their inventory.)

>Multiple quantity from different sellers shouldn't be combined

Yet it's happening. I don't claim to know all the whys, but I've ordered enough to know that it's happening. And a lot.

Why do you think the problem is growing, and that it has to do with commingling?

Re multiple quantity: have you gotten counterfeit and authentic product in the same box?

It's growing because it's happening in a higher and higher percentage of my orders. Plus based on public knowledge of the issue. 4 or 5 years ago, it took serious searching to find other people talking about it. The last 2 years, it's become fairly well known. And is now common.

Some problematic products, I've ordered a couple dozen times and never gotten a genuine product.

>in the same box?

Yes, multiple times, although probably less than 10. And a couple were supposed single seller items. Didn't matter.

(One case initially got my account flagged and couldn't buy anything else until I sent pictures for proof. One of the only times I've ever had Amazon call me.)

However, the much more common occurrence is variance over separate orders.

This is true, except it doesn't help the problem at hand. The problem at hand being that people are still receiving counterfeit products in the meantime.

Knowing how Seller Performance works, they aren't about to close off a listing that is doing $nn-K revenue per month because of a couple of copyright reports. The economics simply don't make sense for Amazon to poison the inventory of a seller because of a couple of reports, to fix this problem Amazon truly needs to figure out a way to verify the validity of inventory sent in to their warehouses.

That's a question that I don't have an answer to, but I do hope that someone from Amazon is really working on it. Inventory commingling and a myriad of other issues present in the processes of selling on Amazon are the reason that I decided to not pursue FBA further.

Yes, but that's a problem with or without commingling. My point was that commingling doesn't contribute significantly to the counterfeit problem.

Regarding your points:

1. Amazon takes action when a brand complains, even with only a single complaint. Sellers have to prove the complaint is wrong to be allowed to continue to sell the product, or in some cases to be reinstated. Usually this is done by providing an invoice which Amazon verifies.

2. The enforcement is usually at the seller level, not the listing level.

>1. Amazon takes action when a brand complains, even with only a single complaint.

The owner of No Starch Press shows up at a lot of CS shows and other shows. Next time you are at one, seek him out for a chat. Tell him Anazon takes action after a single complaint. Be prepared for him to disabuse you of your misconceptions.

Source: I heard his story first-hand at PyCon.

It it has taken us months to get Amazon to respond to a counterfeit claim. I hope that they will respond quickly to this one.

How are you submitting your claim? You can do both counterfeit and DMCA reports, but DMCA reports have a deadline of two weeks where it must be processed and delisted by then. I've never heard of anyone having a legitimate DMCA report rejected by Amazon.

I'd be fascinated to know why he didn't sue Amazon, if they're refusing to process DMCA takedowns. My experience is that if anything, it's too easy to file a case and brands abuse this to get rid of grey market sellers that are selling authentic products.

No one wants to sue their major unless they're pushed to the wall.

I've sued Amazon (privately in arbitration) and I have friends who've sued them in court. Nothing wrong with suing to prevent infringement. It'll just get them to fix the problem, and you'll get nice money out of it if it's as clear cut as you say.

I very much doubt Amazon is rejecting DMCA notices, and suspect the story is more complicated than that. I've heard from many sellers that it's easy to file complaints, and I know many sellers who have gotten false complaints, which is also what you'd expect if it's super easy to file complaints.

Wow, HN is really turning into a hive mind. First time I see someone post this. Thanks for this data point.

With this in place, it seems vendors get to choose if they want commingling or not. Would be nice to provide a checkout option to buyers as well, like choose a slower shipping but guarantee your getting the item from the vendor. Or even if it asked you... getting item from alternate vendor will ship faster? Is that okay? And mentioned the alternate vendor.

Except go read the seller's forums. Sellers who (claim to) opt out are constantly complaining that their product still gets mixed in. Even sellers who do their own asin / personal barcodes have problems with it.

Amazon is either ignoring the preference when it suits them, or has significant flaws in how they're implementing the policy.

Either way, they're destroying their brand reputation.