Two men are arrested in Palma De Mallorca, Spain for scamming Amazon out of an estimated $370,000 by abusing their easy no questions asked customer return policy and one simple trick.
How Did They Abuse Amazon's Customer Return Policy?
The two men James Gilbert Kwarteng (22 years old) and his partner only identified as Juan allegedly purchased expensive items from Amazon and then used their easy no questions asked "Customer Friendly" return process to initiate a return for the purchased item. However, instead of returning the original item purchased they filled the box with dirt.
The trick that helped James and Juan get away with this scam for multiple years was they would fill the box with the exact weight of dirt in the box as the original item. Once Amazon received the return back and weighed it, the system would automatically approve the refund.
What Did They do with the Product?
The next stage of the scam, James and Juan setup their online business to resell the newly acquired goods at a deep discount.
This deeply discounted product hurts other legitimate Amazon sellers from being able to sell their products at a reasonable and profitable price.
The estimated loss is $370,000.
What Happens Next?
James and Juan were both arrested and the two appeared in court. They were released for 3,000 Euros (approximately $3,338) and await their final court dates. They both face up to 20 years in prison for customer return fraud against Amazon.
Amazon has closed their accounts.
The real question is: How did it take Amazon years to discover this fraud?
Why Does Back-Track Care About This?
Back-Track is on a mission to help Amazon sellers recover part of the $32 Billion in "Lost Value" in their Amazon customer returns. Back-Track will reBOX, reNEW or rePAIR customer returns for Amazon sellers to help them resell the product once again as refurbished or through Amazon's Renewed program.
We believe that re-purposing the product and extending its life is better economics for Amazon sellers and also better for our environment at the same time. Having less Amazon customer returns destroyed is a good thing.
From our experience working with Amazon sellers, our data shows that about 80% of Amazon's customer returns are "Not Defective". These are products that function as they were designed and can be resold again to someone else.
For every item that Back-Track reNEWS or rePAIRS that's one less item going into a landfill prematurely. That's one less item draining profits away from Amazon sellers. That's one more item in the hands of a consumer like it was originally designed for.
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Is this called "Dirty Money"?