They do, and we have seen people get fake items. this is a huge problem for things like tourniquets. We tell people to go right to North American Rescue for example but so many people instinctively go to Amazon now and order things that it's a problem.
the fakes look almost like the real thing but have no quality control and break easily.
There are lots of bins in the warehouse. They contain up to around five items each. There is a theoretical possibility that two of the same thing from different sellers could end up in the same bin. At that point the picker wouldn’t know which is which.
Amazon's seller-side stickerless inventory documentation specifically says that identical items from different sellers are never put into same physical bin so that the original source can be traced.
Irrelevant to the discussion. Keep reading the link that cj provided, starting at the "Example", and you'll see that there is nothing preventing a counterfeit item being sold on behalf of a FBA seller even if the seller shipped genuine items to Amazon. All virtual tracking does is (theoretically) allow *tracing* of the counterfeit item should it be detected and reported.