Amazon Seller Fraud: 12 Warning Signs to Watch For

While most Amazon third-party sellers are legitimate businesses, fraudulent sellers cost consumers millions annually through scams, counterfeits, and deceptive practices. Learning to identify seller red flags is essential for safe online shopping.

Why Seller Verification Matters

Amazon's marketplace hosts over 2 million active third-party sellers. While Amazon provides buyer protection through the A-to-z Guarantee, preventing fraud is far better than relying on refund processes after you've been scammed.

According to the Better Business Bureau, online purchase scams were the riskiest scam type in 2023, with a 44.5% susceptibility rate. Many of these involve fraudulent marketplace sellers.

12 Warning Signs of Fraudulent Sellers

1. New Seller Account (Less Than 6 Months Old)

Legitimate businesses typically build Amazon presence over time. Brand-new accounts selling high-value items are high-risk. To check account age:

1. Click the seller name on the product page
2. Look for "Just Launched" badge or check storefront history
3. Review the seller's feedback timeline

Exception: Established brands sometimes launch new Amazon accounts, but they typically have verified brand stores.

2. Feedback Rating Below 95%

Legitimate sellers maintain feedback ratings of 95% or higher. Amazon's feedback system is lenient — buyers rarely leave negative feedback, so even small percentages of negative ratings indicate problems.

3. Very Few Feedback Entries

A seller with a 100% rating but only 5 feedback entries over 6 months is essentially unvetted. For purchases over $50, look for sellers with at least 50 feedback entries.

4. Generic Seller Name

Fraudulent sellers often use generic, auto-generated names:

• "BestDeals2024" or "QualityShop123"
• Random letter combinations like "HKJLDX Trading"
• Names that imply official status: "Official [Brand] Store" (when not verified)

Legitimate businesses typically use recognizable business names that match registered entities.

5. No Physical Business Address

Legitimate sellers provide business addresses. If the seller information page shows only a name and email without a verifiable address, that's concerning. Some legitimate international sellers have overseas addresses, but they should still be verifiable.

6. Prices Significantly Below Competition

If a seller offers a product at 40-60% below all other sellers, consider why. Possibilities include:

• Counterfeit products
• Bait-and-switch scams (charge but never ship)
• Gray market goods (not intended for your region)
• Used items sold as new

7. Restricted Return Policy

Amazon requires sellers to honor returns, but fraudulent sellers sometimes add restrictive policies or make returns difficult. Check the return policy before purchasing and avoid sellers with:

• Return windows shorter than Amazon standard (30 days)
• Restocking fees above 20%
• Requirements to contact seller before Amazon return process

8. Products Only From This Seller

If a product is available exclusively from one seller with no competition, investigate further. Legitimate popular products typically have multiple sellers. Exclusive availability can indicate:

• Counterfeit or knockoff products
• White-label products with inflated value claims
• Products not available through normal distribution

9. Feedback Only From Free or Discounted Products

Some sellers build fake feedback through "review clubs" where participants receive free products. Look for feedback patterns:

• All feedback posted within a short time period
• Feedback from accounts that only review this seller
• Generic feedback text ("Great seller!", "Fast shipping!")

10. Suspiciously Perfect Product Reviews

When every product from a seller has 4.8+ star ratings and glowing reviews, use review analysis tools like Null Fake to check for manipulation. Sellers who fake product reviews often also fake seller feedback.

11. Communication Red Flags

If you contact a seller and experience:

• Requests to communicate outside Amazon's messaging system
• Pressure to complete purchases quickly
• Requests for payment outside Amazon
• Poor English inconsistent with claimed business location

These are major red flags. Legitimate sellers communicate through Amazon's system and don't pressure buyers.

12. Recently Changed Business Information

Fraudulent sellers sometimes purchase established seller accounts and change the business information. If recent feedback mentions a different business name or product type than current listings, the account may have been sold or compromised.

How to Verify Seller Legitimacy

Step 1: Check the Seller Profile

Click the seller name to access their storefront. Look for:

• Complete business information
• Consistent product categories
• Feedback history over time
• Response time and customer service policies

Step 2: Read Negative Feedback

Click "All ratings" then filter to 1-2 star feedback. Look for patterns:

• Multiple reports of counterfeit products
• Items never shipped or wrong items sent
• Difficulty getting refunds
• Poor communication

Step 3: Verify Business Registration

For high-value purchases, verify the business:

• Search for the business name in state business registries
• Check BBB listings for complaints
• Search the business name + "scam" or "fraud"

Step 4: Compare to Official Sources

If buying brand-name products, check the brand's website for authorized retailers. Contact the brand if the seller isn't listed.

Safer Purchasing Options

When possible, reduce risk by choosing:

• "Ships from and sold by Amazon.com": Amazon is directly accountable
• "Fulfilled by Amazon" (FBA): Amazon handles shipping and returns, reducing fraud risk
• Official Brand Stores: Look for verified brand storefronts
• Established Sellers: 2+ years with thousands of feedback entries

What to Do If You're Scammed

1. File an A-to-z Guarantee Claim: Amazon's buyer protection covers most situations. File within 90 days of estimated delivery.
2. Report the Seller: Use "Report seller" on the seller profile page
3. Leave Honest Feedback: Help other buyers by documenting your experience
4. File Credit Card Chargeback: If Amazon claim fails, dispute with your card company
5. Report to FTC: File at ReportFraud.ftc.gov for significant fraud

Seller Verification Checklist