Amazon added Pakistan to the countries allowed to sell on its marketplace in the middle of 2021. Indeed, it was a great platform for Pakistani sellers to export their products and establish their names internationally. Pakistan has become the second largest Amazon seller country next to China. However, some Pakistani sellers are ruining the image of Pakistan as they are accused of committing fraud and Amazon has blocked more than 13000 Pakistani seller accounts. Becoming a seller on Amazon had been on a rising trend with the government support to stimulate the cottage industry and enhance exports.
Read more: Pakistan among the top three new sellers on Amazon marketplace
Sellers indulged in fraudulent activities belonged to Mian Channu and Sahiwal cities in Punjab and Amazon has declared both as “fraudulent red zones.” Sources have shared that Amazon has also blocked the IP addresses from these areas and people are now using their accounts from Dubai or through someone else’s computer.
Some of the tricks followed by sellers to conduct fraud are kabootar trick, rickshaw trick, carding and filing.
Kabootar trick
This trick is used to provide fake tracking details to the customers when they shop from those fraudulent Amazon sellers. Delivery time informed by those sellers is 10 to 15 days as Amazon takes around 14 days to credit the amount into sellers’ account. The customer trusts the process told by seller and Amazon transfers the amount within 14 days. As a result, actual customers never receive the products and sellers earn large sums of dollars through this fraudulent trick.
Carding
This is a commonly used trick in which people make accounts on dark websites and purchase hacked cards from those sites for 100-200 dollars. These hacked cards come with all the necessary information like card number, expiry date and Card Verification Value (CVV).
These cards are used by such sellers to purchase and resell prepaid gift cards. In this manner, they can avoid being apprehended by the authorities.
Filing
It is another mischievous trick being used by Pakistani sellers. In this method, sellers get the orders on their Amazon account, purchase it from another account but ship it to the original buyer. They open accounts at Sam’s Club, Walmart, and other merchants and buy the things that Amazon consumers had ordered, using the buyers’ delivery addresses.
All orders that have been shipped to Amazon consumers are returned with the help of Sam’s Club staff because the same buyer receives delivery from one seller. The dishonest seller obtains the buyer’s money as well as the reimbursement from the second vendor.
Sales Tax fraud
In this technique, sellers register their accounts on Amazon using publicly available information of companies registered in the United States. They create Amazon Business Prime accounts under their names, where they buy goods for Amazon customers.
This method is applicable only for Amazon to Amazon drop shipping. Amazon offers a free 30-day trial for Amazon Business Prime. After making the Business prime account by the name of the Company’s CEOs, sellers get an exemption from the sales tax on purchases by using the company’s EIN.
The sellers cancel the account on 29th day prior to the tax deduction deadline. After doing so, they sign up for another account and follow the same. At the end of the year, the company incurs all the taxes and the seller gets all the advantages.
These are some of the fraudulent techniques being used by Pakistani sellers to make extra money which resulted in the ban of more than 13000 seller accounts on Amazon. More than that, the acts deteriorated well-established image of Pakistan internationally.