Evidence of ATS Staff Involvement in Product Theft
Based on careful analysis and our controlled tests orders , it has become evident that Amazon Transportation Services (ATS) staff are involved in product theft and facilitating fraudulent returns. Here’s a detailed breakdown of how this was confirmed and why Amazon has yet to take decisive action:
Reasons Why It's Clear That ATS Staff Are Involved in Theft
1. ATS Staff Are Involved in Theft
Amazon’s return policy mandates that returned items must be in the same condition as delivered, unused, and accompanied by all original brand tags.
Regular customers know that returning incorrect or used items would invalidate their refunds, as ATS staff usually verify the product against the listing image before accepting the return.
2. Controlled Test Orders:
We placed 7 Test orders from various states through friends and staffs family.
When deliberately attempting to hand over incorrect or used products during returns, ATS staff consistently refused to collect them, showing the listing image and demanding the correct item.
However, the acceptance of original products during these tests confirmed that ATS staff are aware of what is being returned.
3. Secure Return Covers and Seal Manipulation:
Fraudulent activities often involve Amazon Secure Return Covers with unique seal IDs available exclusively within Amazon hubs, which ATS staff can access.
This access enables the replacement or theft of genuine items during the return process, with the secure packaging giving the appearance of authenticity to sellers.
4. Order Cancellation Manipulation:
Another tactic involves ATS staff collaborating with friends or relatives who cancel orders when products reach the final delivery hub get refund.
The delivery staff heat the adhesive to open the package, remove or replace the product, and reseal it. The stolen products are then likely used for resale or personal gain.
Why This Is Happening and Amazon's Lack of Action
1. Outsourcing and Subcontracting: AND Seller support don't have any connection with these private contractors
Amazon outsources pickup and delivery to private contractors who further subcontract local delivery hubs.
The delivery confirmation emails and OTPs often list delivery personnel names that do not match local hub employees, suggesting manipulation in staffing records.
Contractors deduct fines from their delivery staff for missing or lost packages, but these staff often work under high-pressure conditions for minimal wages (₹15,000/month), creating vulnerabilities for theft.
2. Safe-T Claims Process:
Amazon deducts fines from contractors for lost packages, with cases where sellers submit legitimate evidence for Safe-T claims- and rejected with the reasons of “Safe T claim limit)
This allows Amazon to profit doubly:
Once by penalizing contractors.
Again by rejecting genuine Safe-T claims, where sellers also bear the financial burden.
3. Profit-Driven Mechanisms:
Normal Sale Profit: On a typical sale without a return:
Amazon charges ~20% commission, ~10% for shipping, and ~20% for ads — totaling 50% of the selling price. ( Approx )
Returned Product Profit: When a product is returned:
Amazon charges an additional 15% refund commission, retains 15% of the original commission, and still charges the shipping fee.
Sellers lose ~40% of the selling price during the first sale attempt.
Upon reselling, sellers incur the same commission and fees as the initial sale, leading to a cumulative loss of 100%-120% of the selling price.
Alongside these losses, sellers are also penalized for returns or discrepancies, further increasing Amazon's profit.
Conclusion
The combination of ATS staff involvement, flawed subcontracting practices, and Amazon’s profit-oriented return policies creates an ecosystem conducive to product theft and financial losses for sellers. By penalizing both contractors and sellers, Amazon generates additional profits, exacerbating the issue without addressing the root cause of theft and fraud.
Sellers are disproportionately affected, losing significant revenue while being held accountable for issues beyond their control.
