After countless instances of product theft and fraudulent returns, it's become clear that Amazon is turning a blind eye because it benefits from these actions. Not only do sellers face product theft, but we are also hit with an additional 15% SCRR fine on top of the regular charges, which only increases Amazon’s revenue—whether it's theft by customers or through FBA operations.

In return-to-origin (RTO) orders, we often receive either different or used products. When items reach the delivery hubs, ATS (Amazon Transportation Services) informs buyers and asks them to cancel the order. Once the order is canceled and the refund is issued, ATS staff—often in collaboration with hub managers—remove the products, hand them back to the buyers, and take 20% of the product's cost as their commission. This mirrors Amazon's own commission structure.( There are several Telegram groups from UP/BIHAR/HARYANA ETC- WE REPORED THIS GROUP WITH GROUP SCREENSHOTS IN AMAZON SELLER COMMUNITY FACEBOOK GROUP, BUT ADMINS DELETED IT WITHIN 5 MIN.)

When sellers attempt to resolve these issues, we are told to file SAFE-T claims. But even with a claim, Amazon either approves just 16-18% of the selling price or rejects it due to claim limits. Meanwhile, they continue to impose a 15% fine due to a high SCRR rate, pocketing more money while sellers bear all the losses.

*The Corruption Runs Deep

I had a conversation with an ATS staff member who confirmed that this is happening. His brother, who now works as a delivery boy in Allahabad, used to work with him at the hub, stealing returned products or switching items with wrong ones. These items are then sold to local shops or sellers.

I decided to conduct my own investigation by ordering 4-5 garments through different friends from various locations. Each time, ATS rejected any wrong items or used products for return, citing "not the same as purchased" or "old garments." They even refused returns without original price tags, showing that they are capable of stopping this when they want to.

Amazon has enough resources to prevent this. They track every ATS member and have the means to verify whether a product was replaced or tampered with during returns. But they don’t hold ATS accountable. Instead, sellers like us continue to receive wrong or used products, and Amazon imposes fines on us.

* Where’s the Solution?

One potential solution could be implementing an OTP system for ATS staff that they would have to input after every successful return pickup or delivery. But Amazon won’t do this because it’s not in their financial interest.

Even worse, we know that in areas like Kalyan, Maharashtra—close to Amazon’s fulfillment centers like BOM7, BOM5, ISK3—stolen products from these centers are being sold openly. These items are repackaged in branded packaging and even come with 15-day credit facilities for regular buyers, offered by the same hub managers involved in the thefts.

* Amazon’s True Face

Amazon treats its sellers like slaves. First, they drain us financially with commissions, fees, and fines. Then, they hand us over to service providers or account managers, who take what's left. And finally, loan providers charge sellers interest rates as high as 28%.

To top it all off, Amazon encourages current sellers to recruit new sellers with promises of rewards up to ₹25,000, perpetuating the cycle.

Only 1-2% of sellers manage to survive and build a successful brand on Amazon. But even then, once you succeed, Amazon steps in with fabricated "Policy Violations" and takes over your brand, handing it to insiders like C*co*lu or Cl*udt*il, and kicking the original seller off the platform. The cycle then begins again.

* What Now?

It's time for us, the sellers, to stop selling on Amazon and inform our families and friends who buy from the platform about the hidden charges, fines, and theft happening behind the scenes. Amazon is exploiting both sellers and buyers. We deserve better than this.