Top 10 Amazon Seller Scams by Your Competitors and How to Protect Your Amazon Business

June 18, 2020   Amazon SEO

Selling on Amazon has become one of the most profitable marketplaces in the world. Millions of sellers compete every day to reach more customers. While the amazon market place offers incredible opportunities, it also attracts bad actors who use underhanded tactics to manipulate, deceive, or sabotage your amazon business.

Falling victim to these scams can ruin your seller account, hurt your sales, and destroys your brand.

AMZing Marketing Agency uncovers the top 10 Amazon seller scams done by unethical competitors and provides actionable strategies to safeguard your business. Knowledge is your first line of defense—read carefully, because protecting your Amazon business could save you thousands, if not millions, in lost revenue.

1. Fake Negative Reviews

The Scam:
 Some unscrupulous competitors hire individuals or bots to leave negative reviews on your listings. These reviews can range from minor complaints to complete fabrications, often designed to lower your product rating or discourage potential buyers.

The Impact:

· Lower sales due to reduced trust.

· Potential removal from Amazon’s Buy Box.

· Difficulty winning Amazon PPC campaigns because reviews impact conversion rates.

How to Protect Your Business:

· Regularly monitor your reviews. Tools like Helium 10 or Jungle Scout can alert you to suspicious activity.

· Respond professionally to negative reviews, showing potential customers you care.

· If reviews are fake, report them to Amazon using the “Report Abuse” feature. Provide clear evidence that the reviews are malicious.

· Encourage legitimate reviews from verified buyers to maintain a balanced review profile.

2. Fake Orders & Chargebacks

The Scam:
 Competitors may place fake orders using stolen credit cards or fake accounts, only to initiate chargebacks after delivery. Amazon’s system often holds sellers accountable for fraudulent transactions, even if you did nothing wrong.

The Impact:

· Loss of inventory and revenue.

· Possible account suspensions if fraud patterns are detected.

· Strain on cash flow, especially for small sellers.

How to Protect Your Business:

· Implement fraud detection software that flags suspicious orders.

· Monitor orders for unusual patterns, such as multiple high-value purchases from new accounts.

· Maintain clear documentation of shipments and communications to contest chargebacks effectively.

3. Hijacking Your Listings

The Scam:
 Listing hijacking occurs when a competitor adds their own products to your listing. They might sell counterfeit items or undercut your prices, damaging your brand reputation.

The Impact:

· Customer complaints and returns due to counterfeit or low-quality products.

· Loss of sales and negative reviews that appear on your listing.

· Possible suspension of your listing due to product quality complaints.

How to Protect Your Business:

· Register your brand with Amazon Brand Registry to gain control over your listings.

· Use unique packaging and product identifiers (like GTINs or custom SKUs).

· Monitor your listings for unexpected changes in pricing, images, or product descriptions.

· Report hijackers immediately to Amazon, providing evidence that the product belongs to your brand.

4. Price Under-Cutting and Fake Promotions

The Scam:
 Competitors may engage in aggressive price undercutting or run fake promotions that make your products appear overpriced. They may also use bots to manipulate dynamic pricing and “Buy Box” eligibility.

The Impact:

· Reduced profit margins due to pressure to match low prices.

· Loss of Buy Box control, which significantly impacts sales.

· Consumer perception that your brand is overpriced or unreliable.

How to Protect Your Business:

· Monitor your Buy Box share and pricing regularly using software like RepricerExpress or SellerApp.

· Avoid aggressive price wars—focus on value, quality, and brand reputation.

· Educate your customers on why your product is worth the price (better quality, warranty, or perks).

5. Hijacking by Review Manipulation

The Scam:
 Some competitors hire individuals to leave “helpful” votes on negative reviews or report positive reviews as inauthentic. This subtly manipulates Amazon’s algorithm to make your product appear less favorable.

The Impact:

· Lower ranking in search results.

· Decreased sales over time due to reduced visibility.

· Damage to brand credibility.

How to Protect Your Business:

· Build a strong base of authentic, verified reviews.

· Keep detailed records of legitimate customer feedback.

· Report suspicious review activity to Amazon, emphasizing the fraudulent nature of competitor interference.

6. Counterfeit Products

The Scam:
 Competitors may produce counterfeit versions of your products and sell them under your brand name. This not only hurts your sales but also damages your brand reputation.

The Impact:

· Negative customer experiences due to low-quality counterfeit goods.

· Loss of brand credibility and potential legal complications.

· Risk of being removed from the Amazon marketplace.

How to Protect Your Business:

· Enroll in Amazon’s Project Zero and Brand Registry.

· Include distinctive packaging, serial numbers, or holograms on products.

· Educate customers on how to identify authentic products.

· Take legal action against counterfeiters if necessary.

7. Account Takeover Attempts

The Scam:
 Cybercriminals may attempt to gain access to your seller account using phishing emails, stolen credentials, or social engineering. Once in control, they can manipulate listings, issue refunds, or steal funds.

The Impact:

· Loss of inventory or funds.

· Damage to seller metrics, potentially resulting in suspension.

· Compromised customer data and breach of trust.

How to Protect Your Business:

· Enable two-factor authentication (2FA) for all accounts.

· Use strong, unique passwords for Amazon accounts and associated emails.

· Never share login credentials, even with employees.

· Monitor account activity daily for unusual changes or access.

8. Fake Seller Complaints

The Scam:
 Competitors may file false intellectual property complaints or claims of counterfeit products to Amazon, aiming to suspend your listings or remove your products entirely.

The Impact:

· Immediate listing suspension until Amazon investigates.

· Loss of sales and revenue during investigation.

· Damage to reputation even if claims are proven false.

How to Protect Your Business:

· Keep all records of product sourcing, invoices, and certifications.

· Be proactive: register your brand and intellectual property with Amazon to strengthen your legal position.

· Respond quickly and professionally to all claims, providing evidence of authenticity.

9. Manipulating Search Rankings

The Scam:
 Some competitors use black-hat SEO tactics within Amazon, like keyword stuffing, fake traffic, or click fraud on PPC campaigns, to manipulate search rankings.

The Impact:

· Your products may lose visibility in search results.

· Increased ad spend to maintain your position.

· Reduced organic traffic and conversions.

How to Protect Your Business:

· Optimize listings ethically with strong titles, bullet points, and descriptions.

· Use PPC monitoring tools to detect unusual click activity.

· Report suspicious competitor activity to Amazon if it violates policies.

10. Phantom Returns

The Scam:
 Fraudsters may initiate fake returns, claiming your product was defective or not as described. In some cases, competitors exploit loopholes in Amazon’s return policies to drain inventory or trigger refunds.

The Impact:

· Loss of inventory and revenue.

· Lower seller performance metrics.

· Increased operational costs due to repeated fraudulent returns.

How to Protect Your Business:

· Document product condition before shipping.

· Require photo evidence for high-value returns.

· Flag suspicious return patterns and report them to Amazon.

· Consider using Amazon FBA to leverage their return handling systems, which can help mitigate fraudulent returns.

Let AMZing Marketing Agency Protect Your Amazon Business

Hire an expert in Amazon Marketplace to avoid this scams. Amazon offers unprecedented opportunities for sellers, but the marketplace is competitive, and scams from unethical competitors are real threats. The key to survival is vigilance, knowledge, and proactive protection.

AMZing Marketing Agency will monitor your listings, securing your accounts, maintaining strong documentation, and leveraging Amazon Brand Registry, so you can safeguard your business against the top 10 scams outlined above. Remember: a proactive seller is a resilient seller.

Get expert help today from AMZing Marketing Agency!

Protect your brand, protect your reputation, and your business will thrive on Amazon.




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