amazon-fba-scams

Are you afraid of Amazon FBA Scams?

Without any doubt, Amazon.com is the largest online platform for e-Commerce sellers. However, along with the growing number of Amazon sellers, there are more fraud cases happening, and many sellers in Amazon FBA have to bear huge losses.

But, if you are properly guided and have the right knowledge, the chances of you falling into such scams will be very less. You must understand these scams and make sure to avoid them in order to save yourself from any huge troubles.

In this article, we will discuss some of the most common Amazon FBA scams and provide you some suggestions on how to avoid them. But first, let’s understand why Amazon FBA business is so important and why it is increasing day by day.

Table of Contents

Chapter 1: Why Amazon FBA Is Important for Your Business?

how-amazon-fba-works

Amazon is known as one the world’s foremost e-commerce companies, where sellers and customers make transactions from products. For sellers, there are two options:

  • FBM – fulfillment by the merchant; which means you as the seller have to do all things from storing products to packing to shipping to customer service.
  • FBA – fulfillment by Amazon; in this case, Amazon does all this stuff for you.

We’ll be talking about the FBA aspect today. It’s basically a service where your products and merchandise are stored in Amazon’s ‘fulfillment centers’ i.e. warehouses. If a customer wants to buy your products, the shipping, packing, and customer service are done by Amazon on your behalf.

This means that you as a seller get certain advantages that could prove beneficial for your business. Some of these advantages are as follows:

1. You can handle large quantities through Amazon FBA

Amazon has large and spacious fulfillment centers where they store your merchandise. Since space is not an issue, it means that Amazon can store a large number of goods in their centers, which would otherwise be impossible for you to do on your own.

amazon-fulfilment-center

Furthermore, shipment of larger cargo is also made possible, as delivery is also done through Amazon. Hence, large quantities of goods can be handled in every way.

2. Optimize your supply chain by Amazon Fulfillment Service

As a seller, keeping the supply chain smoothly connected is a hassle. You have to hire companies for packing cargo, for delivery services, and for customs brokers (for international shipping). It can be challenging to keep track of all these things; it also takes a lot of time and energy, not to mention having to deal with each separate payment for each service.

Amazon FBA comes in handy for such troublesome tasks. That means you don’t have to contact all these different services yourself; Amazon FBA does it for you. This saves time, effort and you don’t have to deal with the separate payment issue. Ultimately this optimizes the supply chain for you.

3. Amazon FBA will assure the security of your Goods

If you’ve ever had to store your products in your own warehouse, you know how hard it is to maintain security. There are always concerns about theft and having to hire security personnel. In addition, you might have to worry about whether your products will stay free from damage or not.

Amazon FBA again comes to the rescue by making sure that security concerns are completely eliminated by keeping your products in their safe and secure fulfillment centers. There are no risks of theft and product damage.

4. Better customer experience through Amazon Artificial Intelligence systems

Amazon has an advanced AI system that is catered towards enhancing customer experience. A better customer experience means good news for the sellers as well.

amazon-fba-seller-experience

One of the AI systems is designed to figure out how many potential customers a new product can attract. So if you’ve listed a new product, it can help you predict the sales. This means you can make a business strategy to adapt to the situation.

5. Amazon FBA stores can be sold to other entities

If you want, you can sell your entire store and inventory to other sellers or businesses. This of course is made convenient by Amazon FBA as all your products are in one place, and there is no hassle with the paperwork and transfer.

This also limits the risks of Amazon scams and frauds, as you can trust Amazon FBA with the whole process.

Chapter 2. Leaking Account Information of Amazon Sellers (3 Scams)

Before you sign up to be an Amazon FBA seller, you need to be aware of some Amazon scams. Most of the Amazon scams are due to fierce competition on Amazon FBA, which can lead to one seller sabotaging another.

There are certain Amazon scams that attempt to leak your account info such as:

Scam 1: The “Get-Rich” Scam in Amazon FBA

One of these is the ‘get-rich Amazon scams, which is when the scammer sends an advert or a link to some suspicious site showing himself as a representative of Amazon.

amazon-fba-scams-free-money

The site requires you to enter your Amazon account info. Of course, it can also proceed via Amazon scam calls. As a result, the scammer gets your information and can use it for wrong means.

If your account gets hacked by this method, the scammer can do anything possible, including stealing your financial information or causing problems for customers and other sellers to obstruct your business. This can get you banned from Amazon FBA.

Scam 2: The Credit Card Scam in Amazon FBA

You might get Amazon scam calls where the scammer pretends to be from Amazon FBA and asks for your credit card information. They might do it in the guise of verification of credit cards. If you give away this information, then your finances are in serious danger.

This could lead to the scammer making purchases from your credit card and potentially obstructing business by buying illegal items. This again can lead you to be banned by Amazon.

Scam 3: The Fake E-mail Scam in Amazon FBA

fake-e-mail-scam-in-amazon-fba

The scammer pretends to be from Amazon FBA and asks for your account information and private data.

Case study:

A seller reported receiving an Amazon scam email that looked very professional and authentic. It said there was a problem with the seller’s account information. There was a link included in the email; if clicked on, it led to a page that asked for the seller’s sign-in information.