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Unsellable items are stored until seller removes or asks for it to be recycledįBA is a great service, but as you might imagine, Amazon workers aren’t brand experts.Sellable items are added back to inventory and relisted.Items are sorted as “sellable” or “unsellable”.The Fulfillment By Amazon process usually handles returns in the following way: How Amazon Fulfillment Could Affect Returnsĭo you fulfill orders through Amazon using their Fulfillment by Amazon (FBA) service? If so, this means you’re depending on Amazon to not just process returns for you, but also detect when there might be irregularities and determine whether or not items are fit for resale. Avoiding this issue is really a matter of avoiding delivery oversights. Regardless, every once in a while, Amazon will still provide a refund on items which the buyer claimed never arrived or were never returned. This is less common on Amazon than it used to be. Many consumers see illicit returns as a “victimless crime,” assuming that the company won’t be impacted. This is bolstered by the fact that Amazon is such a massive company. Scammers who engage in refund fraud assume there’s very little likelihood of it even being noticed.

Understanding your customers’ reasoning and motivation is a big part of discouraging this activity. Learn more about return fraud 4 Reasons People Engage in Amazon Refund Scams Regardless of the source, though, return fraud is a real and growing threat that costs merchants both time and revenue. However, an increasing number of cases involve premeditation and malicious intent. Return fraud can be the result of an honest mistake on the part of the consumer. In 2020 alone, about 6% of all return requests - some $25.3 billion - were fraudulent. The merchandise may be ineligible for a refund because it was purchased from another retailer, because the item is used, or was marked as otherwise ineligible for a refund before purchase.Īmazon is a hot target for this activity, but it’s not limited to the platform it’s a huge problem across the board. Return fraud is the act of returning merchandise to a retailer for a refund in violation of the merchant’s stated returns policy.