When you do business on Amazon, have you ever encountered this problem: the product cannot be sold, and you are in a hurry to clear the stock, but you end up being cheated? 😱

This "online clearance" scam has actually been around for several years, but there are still many sellers who have not come across this kind of case, and until 2024, many sellers have been scammed, and the amount is not small, which is really heartbreaking! Today, let's reveal this scam to everyone and let everyone be more vigilant!

How does the scam work?

A seller gave feedback to Zhaodanmao Cross-border. He found a service provider to clear his inventory, but he was cheated by the service provider unexpectedly!

The general situation is: one of the products is not selling well, and the seller plans to clear out the stock, so he finds a service provider. The service provider requires that he can help promote sales outside the site, but the seller needs to settle with him according to the exchange rate of 3.5. The service provider also proposes that if the product price is too low, it will be difficult to promote, and asks him to raise the price.

The seller raised the price as required by the service provider and also saw new orders. However, after the orders were placed, the service provider asked him to settle the bill based on the transaction price multiplied by 3.5. The seller settled the bill with the service provider himself.

For example: suppose your product is normally priced at $20.99, but the scammers will raise the price to $35.99 or even higher. Then, they will place an order at $35.99 and refund you at an exchange rate of 3.5.

Looks pretty tempting, right? Let’s do the math:

A. The buyer places an order at an exchange rate of 7: 7 * 35.99 = $251.92

B. You get a commission at an exchange rate of 3.5: 3.5 * 35.99 = $125.96

C. You will still have: $251.92 - $125.96 = $125.96

After deducting various expenses, you still have some profit, which is much better than selling at a loss. Are you tempted? But don't worry, there is a big pitfall!

After the scammers place an order, the seller settles the commission with them, while they apply for a return and refund in the Amazon system. Because the price of the product has increased significantly, this can easily attract Amazon's attention and be judged as fraud, which can directly lead to your store being blocked.

In addition, these scammers usually place orders by stealing credit cards, and some even involve overseas fraud. Even if it is not a fraudulent act, it is easy for the Amazon system to identify it as a fake order.

Finally you will find:

① Loss of commission.

② The goods are returned but may not be resellable.

③ The link return rate soared.

④ The store is recorded as fake orders by the system, increasing the risk

⑤ The store may be closed directly

⑥ You are so angry that you are half dead 💢

This is a typical fraud model in the cross-border e-commerce circle.

In the past two years, because Amazon has continued to crack down on false orders and reviews, the business of service providers that originally provided this type of service has also been greatly affected. However, how should they use the false order system they have built and the hundreds, thousands or even more buyer accounts they have?

Seeing that many sellers are looking for clearance channels because their products are unsaleable, they come up with the twisted and money-making methods mentioned above.

They first ask you to raise the price, then use their own order-brushing system account to place orders for you, and then ask you to settle the commission according to the order amount, and then use the Amazon platform's no-reason return policy to apply for a return ; for these shameless service providers , they will not suffer any losses on the buyer side, and on the service side, they will not be able to refund the commission to the seller.

① Formal clearance companies will not charge service fees! (Important things should be said three times)

② Even if you are eager to clear out the goods, you should think calmly and avoid seeking medical treatment rashly.

③ Be prepared to lose your capital. After all, there is no free lunch in the world.

I hope everyone can avoid these pitfalls and do business on Amazon steadily and successfully!

What to do if you have slow-selling products?

First of all, if your product is really not selling well, you can give priority to reporting the outlet activities on the site to clear the inventory. Outlet activities can not only ship quickly, but also increase store traffic and conversion rate. It is a good choice! 💡

2. Safe and compliant off-site promotion

If you are unable to submit Outlets or the results are not good, you can clear the inventory through safe and compliant off-site promotions.

Special reminder: Be sure to choose a formal service provider company that can sign contracts and issue invoices. Never contact individual service providers. Nine out of ten of these individual service providers are scammers! 👀

If you still don’t know the principle of off-site promotion, you can read the most comprehensive 6,000-word article on off-site promotion on the entire network: Why has Amazon’s off-site promotion become an important traffic breakthrough for sellers this year? It introduces various off-site promotion techniques and precautions in detail!

3. Recycling inventory at low prices

For those products with high unit prices and poor off-site promotion effects, you can choose to remove them and give them to service providers who recycle inventory at low prices. Zhaodanmao Cross-border can also provide relevant services! 📦 For relevant offline inventory collection channels, please refer to this article: Amazon sellers contact offline inventory collection channels on their own to quickly recover funds!

4. Direct disposal and focus on the main products

If the product cost is not high, just discard it as a sunk cost, and focus your energy and attention on the flagship product you want to create , and stop crying over spilled milk. 🥛

When doing business on Amazon, the most important thing is to maintain a good attitude and clear thinking, and don't rush to try any possible means. Be cautious in every step, so that you can go more steadily and further on the road of cross-border e-commerce! 💪