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Can Signature Confirmation Reduce Reported Lost Orders?

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Can Signature Confirmation Reduce Reported Lost Orders?

signature confirmation lost orders

In our last blog, we discussed some measures that sellers on Amazon may take in order to curb unscrupulous buyers on the platform. Effective June 23, 2022, Amazon recommends that third-party sellers add “signature confirmation” to orders with a high risk of being reported by buyers as “not received” or “lost.” Third-party sellers can now purchase “signature confirmation” service when you select shipping for these orders in “Buy Shipping.” If you would like more information on this new service, please continue reading, then reach out to AVASK Group today.

How does Amazon’s new signature confirmation cut down on lost orders?

According to Amazon, the company’s new signature confirmation works as follows:

  • Amazon’s machine learning technology identifies high-risk orders by analyzing hundreds of signals, such as delivery problems, item value and delivery address.
  • The machine learning technology flags high-risk orders on your Manage Orders page under the “Order Status” column with a “signature confirmation recommended” message.
  • Amazon will add the cost of the signature confirmation services to your shipping fee if you proceed with the recommendation.
  • If the buyer reports a signature-confirmed order as “lost” or “not received,” Amazon will conduct additional checks on that buyer’s account. Eligible sellers may appeal any refunds or claims Amazon grants without the seller’s involvement.

The online retailer claims that this new service will reduce reported lost orders by thirty-five percent.

Are there downsides to this new service?

Please keep in mind that some carriers may charge you an additional fee for signature confirmation implementation. Also, some buyers may feel offended by you requesting signature confirmation and leave negative reviews.

As if that is not enough, some unscrupulous buyers may try to cheat this new system by signing illegibly or signing under a different name, then claiming that someone else signed for the package. The online retail behemoth tends to favor buyers, even those with spotty records or who live in high-risk locations, so reach out to Timothy E. Nelson, CPA to discuss the full range of strategies you can employ.

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If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation.

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