Why does Amazon require a registered trademark to set up an Amazon store? The answer is trust. As the world’s largest marketplace, Amazon depends on both buyers and sellers to participate in a way that creates trust so they keep coming back. They clearly have a great deal of trust from buyers, which is why Amazon has over 150 Million Prime subscribers. That massive audience is why businesses want to sell on Amazon. To keep those buyers coming back, Amazon needs to have great stuff for sale, and that means products from great brands that its customers recognize. What those brands worry about in a marketplace this powerful is losing control of their reputation and relationship with consumers. With over 150 million Prime customers ready to “Buy now with one-Click®️”, it can be easy for merchants to offer counterfeit goods, or knockoffs, and other products that buyers mistakenly believe come from those great brands. This kind of confusion can dilute, blur, or tarnish a brand by associating inferior products with the mark, and enabling freeriding where a well-known brand’s reputation is exploited to sell another merchant’s goods.
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