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Tue July 12 2022 20:30:10

Amazon Flags High Risk Orders: Good News - Bad News for Sellers

By: Ina Steiner

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Amazon began flagging high-risk orders last month. On the face of it, the new feature can be helpful to sellers - but, it does come at a price.

As of June 23, Amazon began using machine learning technology to identify orders at high risk of being reported as "not received" or "lost." It does so by analyzing "hundreds of signals," such as delivery problems, item value, and delivery address.

Amazon flags the orders deemed high-risk with a recommendation to sellers to send them using signature confirmation required. "If you proceed with the recommendation, the cost of the signature confirmation service will be added to your shipping fee," Amazon explained.

It was quick to point out it would not pay for the signature confirmation service charged by shipping carriers. "The service charge varies by carrier, but on average costs between $3 and $6 for each order."

The question sellers may be asking themselves is whether an item flagged high-risk would be covered for claims if they chose *not* to pay for the extra signature confirmation service. Sure enough, a seller responded to the announcement by asking, "Does this mean AMZ will not honor their INR coverage if the seller doesn't follow their recommendation of Sig. CON?" (INR = Item Not Received claim in ecommerce lingo.)

Conversely, sellers wondered if Amazon would cover INR claims even if they *did* purchase the extra signature-confirmation service.

"The problem with signature confirmation is that drivers accept any signature, and when the signature collected is not the buyer's - Amazon refunds on "item not delivered" claims, and the seller has no recourse. So signature confirmation isn't a failsafe," a seller wrote.

The first question out of the gate by sellers was, "We already have coverage for delivery issues when we use Amazon Buy Shipping. Why should we spend money on signature confirmation when we are already covered for delivery issues?"

One asked why Amazon didn't automatically require signature confirmation on high-risk orders and require the *buyer* to pay for it.

One seller questioned why Amazon would want sellers to attempt to deliver high-risk orders at all. "If you already know a "delivery address" has "delivery problems", why would we have to deal with that customer at all!?! The fix for bad buyers is sellers paying more for shipping? Instead of this foolishness, if the machine learning identifies a high-risk order, how bout we have the option to cancel said order without it affecting our metrics!?"

One seller pointed out that some buyers don't want signature-confirmation and cited an example of such a case where the buyer refused delivery and left low feedback with "horrible comments about my company" that Amazon refused to remove.

Another seller confirmed the experience, writing, "In the past, we have received negative feedback because they buyer was inconvenienced by the signature requirement. Amazon wouldn't remove it, of course."

You can find the June 23rd announcement and seller comments on Amazon Seller Central, let us know what you think.



Comments (4) | Permalink

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Perminate Link for Amazon Flags High Risk Orders: Good News - Bad News for Sellers   Amazon Flags High Risk Orders: Good News - Bad News for Sellers

by: Snapped This user has validated their user name.

Wed Jul 13 10:18:21 2022

“ So signature confirmation isn't a failsafe," a seller wrote.”

All signature items mst be scanned by USPS, at which time a GPS fix, plus image s recorded and transmitted as a retrievable track search return.  If a claim for signature does not show either the intended recipient’s signature OR the correct GPS address location, or if neither is retrievable, the SENDER has valid basis for a claim of non (mis-) delivery.  There are occasions (C-19 protocol, standing customer permission order, etc) where a carrier signs, as will be evident.  It should also be noted that a majority of recipient’s ‘signatures’ are barely legible scrawls, as an investigative consideration for ‘not me’ claims.

Many folks are also unaware of a service called Restricted Delivery.  This requires an ID check by the carrier at time of delivery, and due to it’s legal weight, is grounds for termination if delivery is made without it.  

And yes, that adds cost and ‘inconvenience’.  Since when did ANY attempt to ‘assure’ improved security not?  

Amazon may well choose to ‘flag’ said sales as they see fit, it is not entirely unsound because enforcement costs much more than prevention.  However, there are those pesky questions posed that must be answered clearly first, especially if ‘protection’ may come to rely on use of signature as evidence of delivery.  

However, if they plant these caution flags, it should be EQUALLY ‘compulsory’ for a buyer to acknowledge and confirm they are making a conscious choice to ‘gamble’ accordingly.  And THAT bet should NOT be raked from the seller’s chip stack.

Perminate Link for Amazon Flags High Risk Orders: Good News - Bad News for Sellers   Amazon Flags High Risk Orders: Good News - Bad News for Sellers

by: Snapped This user has validated their user name.

Wed Jul 13 10:29:18 2022

One clarification on a seller’s “valid basis for a claim”.  If the carrier of record confirms delivery with signature to ANY recipient at the address, and GPS backs it up, the claim will likely, and rightfully, be denied.  

Perminate Link for Amazon Flags High Risk Orders: Good News - Bad News for Sellers   Amazon Flags High Risk Orders: Good News - Bad News for Sellers

by: lisapar This user has validated their user name.

Thu Jul 14 10:27:11 2022

I am a Seller on Amazon and have seen this new feature.  I also drop ship my orders from the manufacturer due to the size/weight (not economical to house large/heavy items at my location and ship to the buyer - it would be cost restrictive).  I have requested the Signature when AMZ has flagged the address as a High Risk.  However, my question has been:  since I don't use AMZ's Buy Shipping (a supposed fail-safe protection measure for sellers should an INR claim be filed), will I be protected by showing the signature?

My initial thought is - Nope.  The AMZ platform is so heavily weighted in the buyer's favor, it's a breeding ground for fraud.  Buyers claiming INR (but received it).  Buyers returning used items, or an empty box of a lessor value item.  Or (what I experience the most), Buyers purchasing the same item 6 months later, only to swap out their used item for a new one (returning the used item).

It's a tough platform that one has to cautiously outweigh the risks vs. the reward.

The fraud knowledge is out there -- and shoppers are fully engaged in the practice of getting a free item on AMZ.

Perminate Link for Amazon Flags High Risk Orders: Good News - Bad News for Sellers   Amazon Flags High Risk Orders: Good News - Bad News for Sellers

by: NYSteve This user has validated their user name.

Thu Jul 14 12:17:44 2022

how's about Amazon keeping track of addresses with a history of INRs and threaten to (or actually) kick them off the platform as buyers?



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