Have you price compared when buying basic household goods recently? I haven't found Amazon to be significantly cheaper than local big box stores, who also happen to actually care even a little bit about their supply chain.
So Amazon are undercutting by skipping supplier verification. How is this a "hard problem"? If I make my restaurant cheaper by not checking food refrigeration, that's not a "hard problem to solve"
And it is indeed an arms race, like everything that happens on the internet at scale where money is involved.
But I disagree that the problem is prohibitively hard to solve. In my experience you can always stay just ahead of the black hat players. They're rarely smarter or more talented than competent software engineers and data scientists.
Amazon's failure to stay ahead in this area is, to me, an indication that they're using the wrong strategies, probably because people with the wrong skillsets are being assigned the job of figuring out how to solve the problem.
Amazon's prices are too low to do this verifications per product.
> The scammers and amazon profit.
Is short term thinking and Amazon would never think like that.
The problem is harder than you give it credit for. It's a constant arms race.