Amazon (NASDAQ: AMZN) is piloting a verification program that requires would-be sellers to do a video call with Amazon representative before being allowed to sell on its storefront. The program is a continuation of an earlier program that saw potential sellers verified in person.
Amazon's new program is currently being tested in a limited number of markets, including the U.S., U.K., China, and Japan. The program is an adaption of Amazon's in-person verification program, which was adapted to video conferencing meet social distancing guidelines in the midst of the coronavirus pandemic. The program is a supplement to Amazon's existing application process.
Amazon has stated that it uses Chime videoconferencing technology for its video calling. An Amazon official starts the process by checking the ID of the seller against whoever is in the call to ensure that they are the same person before reviewing the documentation regularly submitted as part of Amazon's regular approval process.
Amazon's efforts come amid a slew of complaints of price gouging on the company's flagship storefront. Sellers flocked to the site amid the onset of the pandemic attempting to sell essential goods such as masks, toilet paper, and hand sanitizer at massively inflated prices. Other sellers have been inflating the prices of electronic products considered essential as many are forced to work from home, items such as ethernet cables, wi-fi routers, and laptops.
Amazon has been working to combat fraud and price gouging on its platform amid the pandemic. "There is no place for price gouging on Amazon," the company said. "We are disappointed that bad actors are attempting to artificially raise prices on basic need products during a global health crisis and, in line with our longstanding policy, have recently blocked or removed hundreds of thousands of offers."
The new verification method is expected to cut down on fraudulent sellers, a problem that has plagued the company long before the coronavirus pandemic. Amazon has been plagued by sellers listing counterfeit items, which has prompted some companies to avoid selling directly on Amazon in the past.