With the number of fraudulent returns of junk items being returned to Amazon's marketplace vendors on the rise, it is pointed out that 'Amazon's return policy is too favorable to fraudulent customers'
Amazon, a major online retailer, is simplifying the procedures and rules for returns to improve customer convenience. However, there have been reports of a series of 'fraudulent returns' on
Amazon Sellers Plagued by Surge in Scam Returns - WSJ
https://www.wsj.com/business/retail/amazon-sellers-plagued-by-surge-in-scam-returns-04c86665
US-UK Alliance Pioneers AI Safety Tests, Earning Expert Praise
Amazon is simplifying its return procedures to build an efficient delivery system and improve customer satisfaction, but it has been pointed out that this initiative is placing a heavy burden on marketplace sellers.
Nicole Burton, who sold apparel products on Amazon Marketplace, had suffered damages such as a wallet from the famous apparel brand Coach being returned by a buyer who had bought it, and a pair of Nike soccer cleats being returned as flip-flops.
There have been many reports of similar incidents on the Internet, such as 'used soap was returned' or 'I sold a Nike hat, but they sent me a dirty one with a Nike sticker on it.'
When a seller is a victim of return fraud, they file a complaint with Amazon. However, according to the Wall Street Journal, it takes several weeks for Amazon to process the complaint, and even if Amazon accepts the complaint, there are cases where the full amount is not returned, so it is often not worth the time and effort. Burton also asked Amazon for help, but the situation was not resolved. After that, Burton switched his marketplace to selling consumables such as pet supplies, and was able to significantly reduce the number of fraudulent returns.
Generally, return fraud is perpetrated by both individuals who are deliberately trying to deceive sellers, and by large networks of fraudsters who have learned about fraudulent return methods through online forums. Amazon, the largest online shopping platform in the United States, is a major target for return fraud.
An Amazon spokesperson said, 'The company does not tolerate fraudulent returns on Amazon,' and reported that the company has made significant investments in detecting and preventing fraud, including hiring a team dedicated to fraudulent return issues, and also provides a service to compensate sellers when they report fraudulent returns. In addition, Amazon has taken
Amazon sues criminal group that made hundreds of millions of yen by fraudulently asking for refunds without returning products - GIGAZINE
However, the National Retail Federation (NRF) pointed out that 'return fraud has become a major problem for our industry.' According to the NRF, about 13.7% of returns received in 2023 will be fraudulent, costing retailers a total of $101 billion in losses. The NRF criticized, 'More consumers are shopping online in recent years, but return fraud is on the rise. Amazon has not taken sufficient measures to prevent return fraud.'
Around 2004, Amazon CEO Jeff Bezos said, 'Above all, we must put the needs of our customers first when it comes to returns. We must then use our systems and data to catch bad users.' However, former Amazon vice president Casey Roy pointed out, 'It was easy to balance the needs of sellers and customers at the time. But as Amazon has grown into a huge online shopping platform and automation has progressed, it has become very difficult to achieve this balance.'
Related Posts:
in Web Service, Posted by log1r_ut