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Why return fraud is “actually disgusting”
  • By SellerBites
  • January 14, 2025
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Why return fraud is “actually disgusting”

By SellerBites
January 14, 2025


Amazon has gone from a retail site to a service platform.

At least that’s what one article said, citing that the retailer seems to be prioritizing web services for third-party sellers over online retail services for consumers. Well, there’s no question about the expanding seller services Amazon offers. But the important question is: are those services satisfying sellers?

Let us know your thoughts about it—after you read the exposés we have today.

  • A ‘disgusting’ ecommerce problem 🗑️
  • U.S. vs. Chinese sellers on Amazon 🥊
  • TikTok ban checklist 📃

BLACK MARKET

Even in 2025, return fraud remains a big headache for online retailers. A recent Newsweek article documented the “disgusting” experience of one Amazon seller, Rebecca Martinez, dealing with frustrating customer returns.

🍵 What’s the tea?

Martinez shared a video about her ‘scam situation.’

  • She explained that some customers return items that weren’t what they purchased
  • In this case, the best thing to do is document the return. But, she stressed that you better put your gloves on because you have no idea what was sent back. 🧤
  • While Amazon doesn’t allow customers to return items they didn’t purchase (as it should), it does issue automatic refunds as long as the returns paper is included in the package.

Unfortunately, Martinez is not the only seller to experience this. Return fraud costs retailers approximately $100 billion a year!

👊 The good news?

Amazon’s fighting back. 

Martinez said it's "an easy fight" to get your money back when customers return an incorrect item. By sending photos and informing Amazon of the discrepancy, you can get refunds processed within 24–72 hours.

The moral lesson? Document everything and send the proof to Amazon as soon as you can.

HOT TOPIC

Chinese sellers take over Amazon

Did you know that in 2024, Chinese sellers were taking over Amazon? According to Marketplace Pulses’ recent update, they’ve hit a major milestone, making up over 50% of Amazon’s top sellers!

📋 More deets

  • Although Chinese sellers now lead the pack, U.S. sellers are a close second at around 45%. Sellers from other regions fill in the rest.
  • In their 2024 filing, Amazon officially called out China’s huge market share. It’s been growing steadily for years, but this is the first time they’ve pointed it out. 👆
  • U.S. sellers are wondering: Why does Amazon have a dedicated platform for Chinese sellers (Amazon Haul) but none for them? They could also use the same hefty discounts on Amazon Haul, sometimes reaching 60%, to draw in buyers.
  • Despite its growing ecommerce presence, China’s share of U.S. imports has dropped below 50%.
  • Walmart is following Amazon’s footsteps, seeing a rise in Chinese sellers. They’ve jumped from 20% to 30%—another signal of China’s expanding ecommerce presence.

👀 Watch out for risks

With the increasing number of Chinese sellers on the platform, Amazon is facing regulatory and tariff risks. This could affect things like taxes, product quality, and safety.

So, sharpen your eyes and ears to spot risks that could impact your business.

BITES OF THE WEEK

TACTIC TALKS

Doing business on TikTok? Here’s what to do if it gets banned

In less than a week, TikTok’s stay in the U.S. might (will probably) end. And although the app won’t suddenly go dark, it will no longer be available for new downloads on Apple and Google.

📑 If your brand is on TikTok (or TikTok Shop), here’s a checklist from Future Social to help you adjust if the ban pushes through:

  • Turn off ads. Stop all your ad campaigns on TikTok and divert those funds to other advertising platforms like Meta or YouTube.
  • Cancel all collaborations. It’s time to say goodbye to your brand’s TikTok influencer. Maybe you’ll meet again on Twitch or some other streaming platform. 💔
  • Save your videos. If you don’t have a backup of your TikTok videos, now’s the time to get them.
  • Print your reports. Now’s the right time also to download your 2024 annual reports to know how effective your short-form content was.

📍 Again, you can still post new content on TikTok, but you won’t get analytics for that. The app will simply degrade over time. You can also use the app until the latest support and updates are no longer provided.

Author : SellerBites

Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.


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