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May 28, 2024

Legal News

May 28, 2024

Amazon Retailers Face Return Theft

The surge in online shopping has brought about a new form of fraud known as "return theft." This scheme involves individuals or organized crime rings obtaining refunds while returning cheap or used items instead of the originally purchased goods. According to the National Retail Federation, this resulted in retailers suffering overall losses of $101 billion last year alone. The Wall Street Journal reports that Amazon, being the largest e-commerce platform, is a prime target for this type of fraud. However, it's the third-party sellers on the platform who bear the brunt of the consequences.

These sellers rely on Amazon to recoup their losses, but they often find themselves absorbing the costs due to the cumbersome claims process. In light of this, Amazon's sellers, who are currently entangled in a federal lawsuit partly regarding their treatment, have appealed to the company to allow them to verify returns before processing refunds. Despite these requests, the e-commerce giant, which places a strong emphasis on meeting customer demands, has yet to make any concessions.

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