"Beware: Increasing Cases of Fraudulent Returns by Amazon Shoppers!"

For merchants on Amazon, return scams are a painful cost of doing business, Wall Street Journal report shows.

"Beware: Increasing Cases of Fraudulent Returns by Amazon Shoppers!"
entertainment
09 Apr 2024, 01:35 AM
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Amazon has made returning products so effortless for consumers that some individuals are exploiting the policy and deceiving sellers.

One entrepreneur who previously traded clothing and accessories on Amazon recounted a situation where a customer sent back a pair of flip-flops instead of the Nike cleats that were originally ordered. Another instance involved a shopper substituting a Coach wallet with a counterfeit item, as detailed in a recent Wall Street Journal report.

Another business owner specializing in household items shared experiences of receiving cable boxes and used soap bars from buyers executing returns. "It's really anything you can imagine. People ship all kinds of junk back and they do it everyday."

Sellers facing deceitful returns have limited options for recourse. While they can submit a return theft claim, there is no guarantee of full compensation.

Amazon, on its end, stated that it maintains a strict stance against fraudulent returns, as conveyed by a company spokesperson to the Wall Street Journal.

"The challenges faced by sellers in combating return theft on Amazon are significant," Herrera pointed out, underscoring the platform's buyer-centric policies. "Amazon's system is heavily skewed towards pleasing customers, with a focus on facilitating easy returns," he elaborated.

In some cases, Amazon deems the cost of processing returns too high and opts to issue refunds to customers for low-cost items they wish to return, allowing them to keep the products as well.

This issue is just one of many hurdles that merchants encounter on the platform, contributing to the Federal Trade Commission's legal action against the e-commerce giant.

"Many sellers express dissatisfaction with Amazon, feeling pressured and lacking support from the company," Herrera shared with CBS News. "Return theft serves as a prime example of an area where sellers feel powerless against Amazon's influence."