Amazon launches new tool before peak season ends

There is about a week left before Christmas, and the traditional peak season for cross-border e-commerce will end after the holiday. After the peak season ends, not only will orders decrease, but returns will also increase. In order to deal with returns, Amazon has already taken action.

Amazon recently launched a new tool to try to use artificial intelligence and machine learning technology to reduce returns, but the results remain to be verified. At the same time, the platform is also actively guarding against some fraud organizations to reduce malicious returns. These fraud organizations colluded with 7 Amazon employees to manipulate fraudulent returns of more than $500,000. Their practices are infuriating!

Amazon launches new Fit Insights tool in hopes of reducing returns

There are a large number of returns after Christmas every year, and clothing is the hardest hit area. Recently, Amazon launched a new Fit Insights tool , which is aimed at fashion brands. It uses artificial intelligence and machine learning technology to help customers choose the right size and determine whether clothing and shoes fit well to reduce returns.

Amazon mentioned in the announcement that the Fit Insights tool can analyze return data, size charts, and customer feedback on size, quality, and price to suggest sellers to improve brand size charts and product listings .

This tool has the following advantages:

Products are categorized by return health, from very poor to excellent, so sellers can quickly identify listings that need to be updated .

2. Compare product return rates to an average benchmark of best-in-class products with low returns of similar price and style .

3. Summarize positive and negative customer feedback ;

4. Analyze size charts and make recommendations on how to resolve size chart issues and meet customer size expectations.

It’s worth noting that Fit Insights is only available to apparel and footwear brands that are registered with Amazon Brand Registry and have sold at least 100 units in the past 12 months.

Amazon released new tools to reduce returns, but sellers complained about them.

Some sellers said that there might be problems with the buyers. Some buyers returned goods in order to use free products, and they would lie that the clothes did not fit.

" Before launching this technology on the platform, make sure your AI is smart enough to find out which sizes are wrong or which information is inaccurate. Customers who return products are simply looking for free products. " said a seller bluntly.

Other sellers agree with similar views. One of them said, "I sell a stretch winter hat that fits all adults, but every time I return it, the buyer says it doesn't fit. This is ridiculous. 90% of returning customers will lie that their product doesn't fit just to get a free return." The seller shouted to Amazon: " You are training your algorithm based on lies ."

Some sellers have bold ideas and suggest that the platform start charging return fees to customers with bad behavior.

Regardless of the sellers’ feedback, Amazon’s original intention in launching the new tool is definitely good, hoping to effectively control returns and reduce sellers’ losses. For some malicious returns, the platform’s tools may not be able to prevent them, but for some normal purchases, the platform’s advanced technology and the size charts it has introduced to help sellers may be able to curb some returns.

However, while Amazon is launching new tools to reduce returns, it should also carefully investigate its own employees, because its internal employees may also collude with fraud organizations, accept bribes from others, conduct malicious returns, and cause losses to the platform and sellers.

7 Amazon employees took bribes to manipulate $500,000 in fraudulent returns

Amazon filed a lawsuit last week against an international fraud group called REKK, which systematically abused the refund system and stole millions of dollars in products by bribing Amazon employees and other means .

Elsewhere, REKK operates a Telegram channel with over 30,000 followers where they brazenly advertise what they fully admit is a fraudulent refund service. In this scheme , customers who want a free product (like an iPad) can pay REKK a fee (like 30% of the product cost) to receive a fraudulent refund.

REKK’s approach was to initiate a refund for one of Amazon ’s products, then not return the product as promised, but keep both the product and the refund. Its methods for obtaining a refund were not simple, including communicating with Amazon customer service, phishing Amazon employees, manipulating Amazon’s systems through unauthorized access, and bribing Amazon internal personnel to perform refund operations.

REKK has used fraudulent means to refund 100,000 orders from retailers, including not only Amazon but also other e-commerce platforms .

According to the lawsuit, Amazon claims that "REKK identified Amazon employees responsible for approving bona fide returns and then bribed those employees to falsely approve orders as returned that were not returned."

The defendants also used “substantially different returns” to request refunds for products, where REKK or its users would return empty packages to Amazon, and some would keep high-value products and return low-value products. These false returns were designed to deceive Amazon’s system into believing that the defendants had returned the correct merchandise.

Amazon claims that another method used by fraudsters is to manipulate UPS tracking data to obtain goods and get a refund at the same time. If a customer uses the REKK service to purchase an item on Amazon, the customer refuses to deliver the package, and the UPS data shows that the package was returned. After Amazon refunds the undeliverable package, the customer receives the package at the delivery address and the UPS shipping data is updated.

Amazon also sued seven former employees who worked in Amazon's operations organization and were responsible for processing product returns. Amazon said the seven internal employees collectively provided more than $500,000 worth of fraudulent returns to REKK and its users.

In addition, Amazon also sued 20 unidentified individuals or entities, accusing them of operating under the name of REKK and providing fraudulent refund services, and accusing these 20 individuals of using REKK services to defraud Amazon.

$500,000 is not a small amount. No wonder some sellers have repeatedly encountered malicious returns. It turns out that it was all caused by this group of people. What's more frightening is that they have a special organization. It is still unknown how many third-party sellers have been affected, and it is also unknown whether the affected sellers will receive compensation.

However, Amazon's lawsuit can to a certain extent combat these bad behaviors and reduce the occurrence of malicious returns.

Amazon also often mentions that the platform is committed to combating fraud and will take direct legal action against bad actors who cause harm, including working with law enforcement agencies around the world to hold bad actors accountable. In November alone, Amazon supported law enforcement agencies on three continents to take action against multiple gangs, ultimately arresting multiple people and dismantling a criminal group that caused millions of dollars in retail fraud.

Amazon also said it is firmly committed to pursuing those who intend to undermine the integrity of the platform through all available channels and eliminating such criminal activities.

At a time when returns are about to increase, Amazon has launched new tools and sued organizations that commit fraudulent returns. This can be seen as an effort to protect sellers. We hope that there will be fewer returns after Christmas this year.

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