Gating vs. Transparency Codes: Which is Better for Amazon Selling?

Alright, so let’s break this down. Gating and transparency codes are two different ways for Amazon to control which sellers are able to list certain products on their platform. Gating means that only approved sellers are allowed to sell a particular product, while transparency codes are given to all sellers and are used to track product authenticity.

Gating: The Ups and Downs

Gating can be a pain in the butt for new sellers or sellers looking to expand into new categories. Getting approved to sell a gated product can be a long and tedious process, involving lots of paperwork and proving that you are a legitimate seller. However, once you are approved, you have a lot less competition and potentially higher profit margins.
On the downside, gating can be restrictive. If you are not approved to sell a particular product, you are out of luck and cannot list it on Amazon. This can limit your ability to diversify your product offerings and grow your business.

Transparency Codes: The Good, the Bad, and the Ugly

Now let’s talk transparency codes. These little codes are meant to ensure that products are authentic and not counterfeit. This is great for buyers, as it gives them peace of mind that they are getting the real deal. As a seller, having transparency codes can also protect you from accusations of selling fake or knockoff products.
But there is a catch. Amazon can use transparency codes to track your inventory and potentially suspend your account if they suspect any shady business. They can also use these codes to trace back any counterfeit products to you, which can damage your reputation as a seller.

So, which one is better?

Honestly, it really depends on your business model and goals. If you are looking for less competition and potentially higher profits, gating might be the way to go. However, if you prioritize authenticity and want to avoid any trouble with Amazon, transparency codes might be the safer option.
At the end of the day, both gating and transparency codes have their pros and cons. It’s up to you to weigh them and decide which one aligns best with your Amazon selling strategy.