12/5/2018 For Amazon, India sees highest product returns - The Economic Times

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For Amazon, India sees highest product returns

BY MUGDHA VARIYAR, ET BUREAU | DEC 05, 2018, 08.43 AM IST Post a Comment

BENGALURU: Amazon gets more product returns in India than in any of the 17 markets
where it operates, a senior company executive said. One reason for the returns is
counterfeit products, which is the case globally, said Dharmesh Mehta, vice-president for
consumer and brand protection at Amazon, without elaborating on why else India gets the
highest returns.

Experts said the wider prevalence of cash on delivery and logistical challenges in the
smaller towns of India were the main reasons for higher product returns in the country.

“Product return to origin is higher in tier-2 and beyond due to lower share of prepaid
payments and challenges for logistics companies in locating the right addresses,” said
Amazon introduced a ‘transparency’ tool in the US
Ujjwal Chaudhry, engagement manager at Redseer Consulting.
six months ago, which lets company staff, sellers
and customers scan the unique code on each
A recent Redseer report highlighted that product returns and cancellations amounted to as product to check for authenticity.

much as 30% of the gross merchandise value. The

ecommerce sector has been the source of the largest Big Change:
The end of Five-Year Plans: All you need to know
number of complaints on the National Consumer
Helpline among all sectors over the past year.

Mehta said Amazon deploys machine learning-based and automated tools to thwart counterfeit
products and will likely bring to India the capability to allow users and sellers to scan a
manufacturer’s code through a mobile application to check for authenticity.

“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,”
Mehta said.

The company introduced a ‘transparency’ tool in the US six months ago, which lets company staff,
sellers and customers scan the unique code on each product to check for authenticity. Mehta said it
will be introduced in other markets, including India, but did not specify a timeline.

Another measure is a brand registry, which itemises company catalogues to ensure that only original
products are listed.

In India, 5,000 brands have been registered, said Gopal Pillai, director of seller services at Amazon India. “The company is very serious
about fighting counterfeit. 99.5% of page views on Amazon are not reported to be counterfeit,” Pillai said.

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