Amazon Transparency Goes to China

October 10, 2017

Earlier this year, Amazon launched its Amazon Elements line with four products: Vitamin D2, Vitamin K2, Turmeric Root Extract and Calcium Complex. The unique facet of the Amazon Elements product line is the implementation of transparency using a QR code, which I wrote about back in March. The consumer can scan the QR code on the front of their bottle’s label. Information ranging from date of manufacture to assay of each ingredient, including country of origin, is displayed on the mobile device. Analysis of microbes, pesticides, and heavy metals is presented through a display of test identification, and country of origin of each ingredient is identified.

Now, the Amazon Elements transparency initiative is becoming increasingly noteworthy because it has become the first brand to openly tout a Chinese sourced ingredient. When Amazon launched the Amazon Elements line in March 2017, it was a big deal in some ways and a limited event in others. The fact that the launch only included four items was considered by many to show a lack of commitment to the concept of the Amazon private label dietary supplement offering. The number of products in the Amazon Elements line has grown to seven in the six months since the launch. While this pace is hardly representative of the speed at which Amazon typically operates, Amazon’s transparency initiative is demonstrating both success and acceptance, partly based upon the consumer ratings its received:

“I love the fact that Amazon Element products are tested for quality, and I can view the Certificate of Analysis for my bottle by scanning the code on the label.”

“I appreciate that Amazon Elements offers transparency about their process of making this, where ingredients come from, etc.”

“I feel confident taking this and I love that they provide so much information about all aspects of their supplements.”

“I love how you can scan the qr code with the Amazon app and it gives you every detail about how/where it was made. Even 3rd party lab tests!”

“This product is made in a Good Manufacturing Practices (GMP) facility in the USA from US, imported ingredient. The user can find the certificate of analysis for his/her supplements by scanning the code on the bottle.”

The China conundrum

The newest Amazon Element offering, Biotin 5,000mcg, is markedly different from the previous six products in that it is the first to have the primary active ingredient sourced from China. All manufacturers to date have been reluctant to call out Chinese sourced ingredients and often go out of their way to avoid admitting the reality that most ingredients are Chinese sourced. I have had the good fortune to have visited many outstanding Chinese manufacturing facilities so I know geography is not a determinant of quality. However, there has been a bias against Chinese manufactured food products not only in the United States but globally, including in China itself.

The Amazon Element Biotin label offers the following:

 

PRODUCT OF CHINA

MADE IN THE U.S.A. FROM U.S. AND IMPORTED INGREDIENTS

 

 

 

Another item called out on this product webpage is the fact the ingredient undergoes a “Biotin Synthesis.” Amazon includes a simple infographic demonstrating the six step process the product undergoes and calls out that the Amazon Elements  biotin supplement contains purified biotin made through a synthesis reaction.

Finally, Amazon cites the Country of Origin again:

We know it’s important to offer a transparent view into the product you’re consuming. The active ingredient is biotin sourced from Xinchang County, Zhejiang, China. Other ingredients in the supplement are designed to keep the blend consistent, prevent caking, and support the encapsulation process.

Early reviews of the product found on the Amazon product page website are consistently calling out the concern about the Chinese sourcing:

“Alas, this supplement is made in China, which is a concern to me, thus the 3 stars rather than 5.”

The capsules are manufactured in the US. but my one concern was that the biotin is sourced from China (something I didn’t notice before ordering) but I guess I need to be satisfied that it was tested for pesticides, herbicides, rodenticides, and heavy metals.”

“It’s nice that you can check the purity et all with these, but a little misleading to say that they’re made in the US when the products come from another country (China).”

“I won’t buy outsourced food products from China for my dogs; I definitely don’t want to ingest any myself. I notice many Amazon Element supplements are products of different countries, and manufacturing costs probably have a lot to do it. It just makes me uneasy to swallow a supplement whose main active ingredient is made in China, but manufactured here.”

“I like Amazon elements products, but coming from China makes me a little unsure.”

The Bottom Line

It remains to be seen how the transparency being offered by Amazon announcing country of origin will affect the success of the product. The result of the impact on sales because of transparency is not the primary focus of a go forward strategy. The importance of the Amazon Element transparency action is the action itself. This level of transparency will become more an expectation and standard as more consumers demand complete product information. Future consideration will have to focus more on education of assurances resulting from inspections, audits and testing. Trying to conceal information because the explanation for assurance is too difficult is no longer sufficient. The good news is much of the industry already conducts sufficient testing of product to assure safety. Now Foods offers this recap of a 21 day audit trip in China. This representation of a company’s determination to gain knowledge of how a product is made is paramount to providing education to the consumer that where a product is made is not sufficient information to determine safety or quality

The trend of transparency is an evolution that is unlikely to step backward. It will be up to the marketplace to decide how it will respond to this new level and no longer pretend evolution of transparency is avoidable. Responsible and accurate sharing of information will likely be the winning combination as we work to deal with the questions emanating from this new level of transparency.

Healthy regards,

Scott Steinford, Managing Partner, Trust Transparency Consulting

Unlock the Power of Transparency: Schedule a Meeting Now

Ready to Illuminate Your Path?
Partner with Trust Transparency Today.

Get inTouch

Lori Diez

Lori Diez combines compassion and excellence to lead organizations to their next level. A small-town Texas childhood taught her the value of hard work and relationships, which she uses to foster teamwork that brings results that have transformed cultures and programs to their highest potential. Her successful career in pharmaceutical and nutraceutical sales leadership and event hosting has prepared her to deliver results as the COO of TrustTransparency, where she uses her industry knowledge to ensure that the company’s operations run smoothly as they support nutraceutical companies in their mission to help others. Lori’s passion for charity reflects her belief that individuals working together can change the world, no matter how small their contribution to the effort. This year, she looks forward to continuing over a decade of service at the Houston Livestock Show And Rodeo, where she will be the Chairman of the Livestock Committee.

Conference Handouts

Conference Handouts

CoQ10 Statin Associated Myaglia Meta Study Barry Tan 0618 Case Study

CoQ10 Statin Associated Myaglia Meta Study Barry Tan 0618 (1)

Statin Q10 Effect Case Study

Statin Q10 Effect Case Study

Schedule Consultation with Trust Transparency

Glynnda Steinford

Glynnda Steinford, Trust Transparency Consulting’s Director of Customer Relations, brings over four decades of healthcare experience to her vital role in client engagement and relationship building. Her diverse background spans from administering medical groups to impactful stints in pharmaceutical and nutraceutical sales, all underlined by her degree in Healthcare Administration.

At the heart of Glynnda’s work is her talent for nurturing long-term connections, a skill she leverages to enhance client experiences and partnerships within the consultancy. Beyond her professional commitments, she enjoys life’s simple pleasures, whether it’s her love for cats and cooking or her ventures into golf, always prioritizing cherished moments with family and friends. Her personal interests echo the dedication and warmth she extends in her professional network, making her an invaluable asset to the team.

Caiti Dowden

Caiti Dowden stands as a crucial pillar at Trust Transparency Consulting, bringing invaluable insight and expertise to her role as Senior Executive Assistant’ since her start in 2018. With an academic background from Sam Houston University and a career shift from education to the nutraceutical sphere in 2010, Caiti has cultivated a sharp acumen for dissecting industry trends and bolstering strategic decision-making.

Her transition from Data Analyst reflects her growth and deep understanding of the business landscape. Caiti’s commitment goes beyond professional excellence; she thrives on balance, drawing from her rich life outside of work to enhance her organizational contributions. Whether it’s family time, volunteering, or rooting for Houston’s sports teams, she believes in embracing experiences to fuel her professional creativity and insight.

In her current role, Caiti’s dedication to dynamic business analysis and operational support proves her to be an irreplaceable asset to our team, embodying the synergy of personal enrichment and professional success.

Pam Hilpert

Pam Hilpert, Chief of Staff at Trust Transparency Consulting, has been instrumental in the firm since its inception, leveraging her 17 years of accounting experience, including a significant tenure in the nutrition sector. Her collaboration with Scott Steinford spans various successful ventures, emphasizing her integral role in the company’s financial and strategic initiatives.

An alumnus of Sam Houston State University, Pam holds degrees in both Business Administration and Accounting, as well as an MBA, adding academic heft to her practical industry insights. Beyond her professional prowess, Pam is passionate about family, enjoys live music, delves into quilting, and volunteers at her church, reflecting her well-rounded life.

Her multifaceted expertise and longstanding dedication make Pam a cornerstone of Trust Transparency Consulting’s operational strength and team unity.

Scott Steinford

Scott Steinford, a trailblazer in strategic leadership, boasts a certified M&A background, having navigated companies from their genesis to industry prominence. His brainchild, Trust Transparency Consulting, born in 2007, stands as a testament to his dedication to ethical business practices and strategic foresight, offering industry stakeholders invaluable guidance.

Beyond founding and steering companies, Scott has enriched the business landscape with his insightful keynotes and prolific written contributions, emphasizing his commitment to elevating industry standards. His executive tenure shines in roles as CEO or President of for-profits like ZMC-USA and Doctor’s Best, extending to significant contributions in non-profit sectors.

Notably, Scott’s influence is a driving force in the CoQ10 market, where his leadership has significantly bolstered the ingredient’s global presence. His roles in various capacities, including as a New Hope Ambassador, keep the community informed, providing in-depth industry reports and insights.

An active advocate within professional associations and an Editorial Advisor for leading industry publications, Scott’s expertise is both recognized and sought after. With academic roots in Pre-Law and a Master’s in Law, his journey transcends textbooks, embodying real-world business acumen and transformative leadership.

Scott Steinford merges visionary entrepreneurship with principled leadership, creating a legacy of innovation, growth, and unwavering commitment to industry excellence.