How do you handle fraud on Amazon?

Sellers, fraud is irritating.

Now that we’ve dealt with that mind-blowing revelation, allow me to tell the short story:

One of our distributors was victim to a credit card fraud scheme, and sold a lot of our inventory out to fraudsters. Normally, this is a “them” problem and I don’t have to get involved.

However, those frauds have started hopping on our Amazon listing and greatly diminishing the value of the listing. At the time of this writing, there are five sellers. As they get banned, new ones replace them.

The problem is that the fraudsters appear to be in a price war with one another and the price tag on the merchandise keeps dropping lower and lower. We have seen sales tank on the listing. I’m sitting on inventory that’s never going to move at this pace, because the fraudsters’ price is now below cost of goods.

Now, we don’t want to burn bridges with our distributor, but I don’t see another way to right this ship. Their fraud problem has become mine.

I tried test buys, it’s authentic product. I tried contacting Amazon, but I got a magic 8-ball response.

Do I have any other options here?

What is your status re: this brand in Amazon? Are you the manufacturer? Do you have Brand Registry? Do you own the IP?

Your options depend entirely on the specifics of the situation.


We have brand registry and the IP, but this was contracted manufacturing. So our next production won’t be from the same place as the previous contract is over.

Our normal MO here is to do nothing and let the fraudsters die, but it’s been several months and they’ve cycled several accounts.

I have to ask the obvious question lurking in the background. Does your contract manufacturer just happen to be in (gulp) China?

If so, and they know the contract is ending I wouldn’t expect much relief. The factory could be selling ‘over production’ inventory.

I know many people have success dealing there, but I don’t have a very high opinion of ‘business ethics’ over there.


How many units did your distributor sell to them? How many units per month does the product sell on Amazon?

This should tell you when you’ll see a light at the end of the tunnel.

Other option is to involve lawyers regarding the sale of stolen goods.

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If you want to involve a 3rd party (attorney, law enforcement) for the stolen goods, your distributor probably needs to be involved since the fraud occurred with them. You were presumably paid for the goods so you’re not the one with the claim.


Would it be worth adding Transparency to this ASIN at this point? My understanding is that would prohibit sales from Sellers without your code.

No, thankfully. We don’t use China for our patented products because they don’t always respect our patents.


As far as something “immediate” (10 days later), I haven’t thought of anything other than buying out their supply.