India Accounts For Highest Product Returns To Amazon; Counterfeit, Poor Logistics In Small Towns Are Prime Culprits

India Accounts For Highest Product Returns To Amazon; Counterfeit, Poor Logistics In Small Towns Are Prime Culprits(Photo by David McNew/Getty Images)

India accounts for the highest product returns by customers to Amazon amongst all the 17 markets where the company operates in. The primary reason for return is the delivery of counterfeit products, as reported by Economic Times.

“Counterfeit is a concern everywhere, and Amazon has been proactive in addressing it through ML, vetting, several tools as well as partnering with law enforcement authorities and governments,” said Dharmesh Mehta, Vice-President for consumer and brand protection at Amazon. Furthermore, some experts cite that the presence of cash on delivery and other logistical challenges in the smaller towns of India as the primary reasons for the high product returns.

“Product return to the origin is higher in tier-2 and beyond due to a lower share of prepaid payments and challenges for logistics companies in locating the right addresses,” quoted the Engagement Manager at Redseer Consulting, Ujjwal Chaudhary.

A recent Redseer study established the fact that product returns, cancellations amounted to as much as 30 per cent of the gross merchandise value.