Aug
Amazon
How to Ensure Brand Protection & Compliance in 3P Marketplace
The way we used to do e-commerce back in early 2000s has been transformed since when the online third-party marketplaces like Amazon, eBay, Walmart Marketplace, and Alibaba have got the buyers’ attention. Through these channels, millions of independent sellers can reach customers worldwide instantly without high overhead.
But this openness also creates risks such as counterfeits, gray market sellers, IP infringements , and unsafe products which are a threat to both brands and consumers. With global e-commerce sales expected to reach $7.4 trillion by 2025 , the need for brand protection has never been greater. So, this blog is all you need to know about how to protect your brand and comply with the guidelines of 3P marketplaces.
Why Brand Protection and Compliance are Not Optional
When a customer buys a product on a marketplace, they don’t really care whether it comes from an authorized dealer or not. The brand is on the box, so the brand is responsible. This means that brand protection directly impacts trust, reputation, and revenue . Counterfeit products can lead to negative reviews, unsafe situations, or warranty disputes.
Moreover, legal pressure is mounting. In 2024, the US Consumer Product Safety Commission found Amazon responsible for dangerous 3P products. Brands that lack oversight therefore face not only reputational damage but also legal and financial risks.
Customers expect safe, authentic products. If those expectations aren’t met, they’ll choose another brand. Restoring trust is more expensive than prevention.
The Biggest Threats to Brands on Marketplaces
3P marketplaces have a low barrier to entry. This makes them attractive even to malicious actors. Below are the five biggest risks brands must address:
1. Counterfeit Products
Counterfeit goods account for $500 billion in economic damage worldwide . These products copy logos, packaging, and even brand slogans, but lack any quality control. They occur in virtually every sector: from cosmetics and electronics to toys and luxury goods. To the consumer, they appear genuine. For the brand, it means lost sales, damaged image, and legal problems.
2. Gray Market and Unauthorized Sellers
Not all sellers offering genuine products are approved by the brand. These “gray market sellers” often buy surplus stock or parallel imports and sell them online without authorization. They offer no customer service, charge different prices, and may even sell expired or damaged products. This undermines the official distribution network and makes the pricing strategy unsustainable.
3. IP Infringements
Sellers use brand names in titles, descriptions, or images to attract traffic. Patents or designs are also copied. The term “compatible with brand X” is often misused. IP infringements force brands to endlessly submit notifications, takedown requests, and legal proceedings.
4. MAP Violations and Price Undercutting
Brands often use a Minimum Advertised Price (MAP) to maintain price consistency and premium positioning. Sellers who consistently undercut this price win the buy box but undermine the brand. This causes channel conflicts, customer confusion, and price pressure from authorized dealers.
5. Product Compliance Risks
Products on marketplaces must comply with local laws and regulations. Unauthorized sellers sometimes import products that lack CE marking, safety labels, or user manuals. This can lead to product liability, recalls, or fines. And ultimately: customer loss.
How Major Marketplaces Approach Brand Protection
Amazon
Amazon has built a complete ecosystem for brand protection. With over $1.2 billion in investments in 2023 and 15,000 employees in compliance teams, the platform is taking the threat seriously.
Brand Registry makes it easy for brands to report IP infringements. Project Zero allows brands to remove infringing listings directly. Transparency uses QR codes to verify product authenticity. Amazon also collaborates with governments through its Counterfeit Crimes Unit , which has prosecuted more than 21,000 infringers since 2020.
| Plan | Functionality |
| Brand Registry | IP monitoring |
| Project Zero | Performing takedowns yourself |
| Transparency | Products provided with unique codes |
| Crime Unit | Criminal prosecution worldwide |
eBay
eBay has been using the Verified Rights Owner (VeRO) program since 1998 , which allows brands to quickly report IP infringements. In 2023, eBay removed over 3.2 million prohibited products , largely through AI. eBay also acquired technology companies such as Certilogo for authentication and 3PM Shield for enhanced brand detection.
Their Authenticity Guarantee requires physical verification of products in high-risk categories (such as sneakers, watches, and luxury items). This provides eBay with additional assurance for buyers and protection for brands.
Walmart Marketplace
Walmart conducts strict verifications before sellers are allowed on the platform. Risk categories are limited, and products are continuously scanned for violations.
The Brand Portal allows brands to report and remove violations. Walmart also supports legislation like the INFORM Act and collaborates with the Department of Homeland Security. As a member of the Anti-Counterfeiting Exchange (ACX), Walmart shares data with other platforms to combat fraud across platforms.
5 Key Actions Brands Must Take for 3P Brand Protection and Compliance
Marketplaces offer tools, but the real work lies with the brand. Here are the key actions:
- Register Your Brand with Protection Tools
Register your trademark with all major platforms. This provides direct access to notification systems, priority processing, and in some cases even algorithmic trademark protection. A well-maintained list of approved sellers helps platforms identify suspicious listings more quickly.
- Monitor Actively and Structurally
Don’t rely solely on customer complaints. Use monitoring tools such as Red Points to automatically detect fake listings, MarkMonitor to protect IP Worldwide, and Entrupy to visually check product authenticity. You can also do Manual monitoring (e.g. searches with “your brand + cheap”) to identify the sellers selling cheap copies of your brand.
- Maintain Distribution and Pricing Policies
Ensure only authorized resellers are allowed to sell your products. Establish reseller agreements and establish MAP rules .
Use tools to monitor pricing on marketplaces. If someone consistently undercuts your MAP, you can:
- Report the seller
- Legal action
- End the collaboration
- Prevent Counterfeiting with Authentication Technology
Use unique product codes, RFID tags, or QR verification to identify counterfeits. Amazon’s Transparency system offers a built-in system for this.
eBay is adding authentication tags to certain product categories. This technology increases customer trust and enables verifiable provenance.
- Ensure Compliance and Certification
Work only with partners who comply with local regulations. Ensure that:
| Product | Certification |
| Toys | EN71, CE, CPSIA |
| Electronics | CE, FCC, RoHS |
| Cosmetics | FDA, INCI |
| Children’s Products | Tracking labels, safety information |
Develop a compliance response plan for recalls, notifications, or inspections.
Legislation and Regulations 3P Sellers Must Know
INFORM Act (VS)
Since 2023, marketplaces have been required to verify high-volume sellers on:
- Identity
- Bank details
- Tax information
This makes it more difficult for fraudsters to operate anonymously.
EU Digital Services Act & GPSR
The DSA requires large platforms to respond to IP violations within 24 hours. The new General Product Safety Regulation (2025) requires platforms to actively remove and recall unsafe products. Fines for non-compliance can reach up to 6% of global annual turnover .
Collaboration via ACX and IACC
Through the Anti-Counterfeiting Exchange, platforms like Amazon, eBay, and Walmart share suspicious seller data. This prevents a seller blocked on one platform from easily reactivating elsewhere. In addition, brands are working on legislation and joint enforcement through organizations such as the IACC and the Buy Safe America Coalition .
Role of AI in 3P Brand Protection and Compliance
Artificial Intelligence is becoming a powerful ally in safeguarding brands against marketplace risks. With the help of large language models (LLMs), companies can now detect suspicious product descriptions that may indicate counterfeits or unauthorized sellers.
Advanced image recognition further strengthens protection by identifying visual trademark violations that are often overlooked by manual monitoring. Predictive analytics adds another layer of defense, enabling brands to recognize risky purchasing behaviors and potential price manipulation before they escalate into serious issues.
Additionally, social scraping tools allow businesses to track intellectual property violations happening outside of marketplaces, ensuring a more comprehensive approach to compliance. Marketplaces and brands that embrace these AI-driven solutions not only reduce risks but also strengthen customer confidence, creating a more secure and trustworthy shopping experience.
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