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Attention Sellers - Online Marketplace infected with fraud buyers

Today, I am sharing with you a real incident from one of the sellers, who is selling on Amazon India. If you are an Amazon seller and directly dispatching products by using own courier service then it will be the biggest losses for you. Maybe you have already faced the same problem if you are an existing seller. If yes then support this post to share with others.

Be Safe - Fraud buyers are active on Marketplaces like Amazon & Snapdeal
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What happening?

On the Amazon marketplace, there is a group of fraud buyers who are ordering the costly items from the seller's listing or store. And the same day of the delivery product, the fraud buyers do place a return request on Amazon.

It seems okay, then where is the issue? :

 Lots of marketplaces like Shopclues, Amazon, Flipkart is accepting returns without verification from the customer and seller. Thier third-party courier accepts the fake item from the buyer as the return and delivering directly to the seller. There are lots of fraud buyers are doing this fraudulent activity with the sellers.

Let's understand it by using an example -

If a buyer placed an order on Amazon for Rs.5000 product, and the same day of delivery he places return request on Amazon. Amazon's third party return pickup courier accept anything from buyers like fake item, dead item or any other item in place of the original item. After that, they deliver the wrong item to the seller.
Here at the same time, Amazon directly refunds the full amount to the buyer. The Fraud Buyer receives the full payment with the original item (without paying anything).

Seller's losses :

  • The seller lost his order or costly item
  • The seller lost commission or selling fees
So think, if any seller earning Rs.20,000 per month after selling lots of product and getting 2-3 fake returns, means he losing everything. Money and time both.

Seller Solution :
The seller can file SAFE-T Claim on Amazon if received wrong items as a return. The seller must create a video while receiving and opening return items then send information to this email id
If you are lucky, then you will get the amount from Amazon.

What is the real solution?

Don't sell on Amazon or any marketplace by using selfship courier services. You can handover inventory to the marketplace for fulfillment if needed.
If you have lots of products then create your own shopping website and provide 100% satisfaction to your customer. One day you will be the winner of the race.

What is the solution for the marketplaces like Amazon?

I am giving just ideas -
Amazon or other marketplaces should provide an open delivery service. Means tell to all customers to open their order or parcel in front of courier boy.
Inform to the buyer, that always create a short video while taking the delivery of an item or opening parcel.
Marketplaces should have a special investigation team to find delivery errors. They should check how much weight delivered to the customer and how much weight he is returning back in the parcel.
If any buyer found in this type of fraud activity, take legal action against the buyer.

Keep Eyes on Buyer Activity -
Marketplaces should have a watch team or virtual system to watch or map customer activity. I mean how frequently a customer returning items and what was the reason.

Suggestion for Online sellers -

You must create a video for every return received from the customer so that you can take legal action against the buyer

Please note - We are not doing any bad publicity of any brand, company. It was a real incident which has faced by my brother. All names are taken only for example.

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