Have you been a victim of online return fraud or buyer scams on Amazon? If so, you are not alone. Such scams have been prevalent since the dawn of the platform and scammers discover more ingenious loopholes every day. As an Amazon seller, you have to protect your business from the different types of swindles that surge from day to day, especially since customer fraud can take a big chunk of your time, peace of mind and money. For more information on how to combat this ever-prevalent trend, please continue reading, then reach out to AVASK Group today.
How might a customer commit fraud on Amazon?
As alluded to above, scammers have an ever-increasing number of ways to rip off sellers. However, the most common methods adhere to the following approaches:
- “Failed delivery”: Around since the creation of e-commerce, this unethical practice takes place when a buyer fraudulently claims the item they purchased online did not arrive and asks for a refund.
- Replace and refund: Buyers purchase a product and then replace it with a damaged one to ask for a refund.
How does a third-party seller combat customer fraud on Amazon?
Amazon is not inclined to disbelieve its customers and so the corporation places the burden of proof on the seller. Indeed, many Amazon A-to-Z claims often settle in favor of the buyer. In that case, the seller should use shipping methods that include tracking options, especially for expensive items. Verifying that the buyer received the order and knowing the moment it arrives can protect you in disputes.
To defeat efforts to replace and refund, sellers should attach tamper-proof stickers after performing a quality test on their product. That way, if a buyer tries to tamper with the sticker, it will break. Stickers also work as indicators to check if the product was actually the one you sent. As an added tip, you should inform buyers on your listing that you carry out quality tests on your products with a sticker warranty.
By reaching out to Timothy E. Nelson, CPA, you can discuss other potential strategies and determine which are most feasible for your business.
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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.