
Amazon began flagging high-risk orders last month. On the face of it, the new feature can be helpful to sellers - but, it does come at a price.
As of June 23, Amazon began using machine learning technology to identify orders at high risk of being reported as "not received" or "lost." It does so by analyzing "hundreds of signals," such as delivery problems, item value, and delivery address.
Amazon flags the orders deemed high-risk with a recommendation to sellers to send them using signature confirmation required. "If you proceed with the recommendation, the cost of the signature confirmation service will be added to your shipping fee," Amazon explained.
It was quick to point out it would not pay for the signature confirmation service charged by shipping carriers. "The service charge varies by carrier, but on average costs between $3 and $6 for each order."
The question sellers may be asking themselves is whether an item flagged high-risk would be covered for claims if they chose *not* to pay for the extra signature confirmation service. Sure enough, a seller responded to the announcement by asking, "Does this mean AMZ will not honor their INR coverage if the seller doesn't follow their recommendation of Sig. CON?" (INR = Item Not Received claim in ecommerce lingo.)
Conversely, sellers wondered if Amazon would cover INR claims even if they *did* purchase the extra signature-confirmation service.
"The problem with signature confirmation is that drivers accept any signature, and when the signature collected is not the buyer's - Amazon refunds on "item not delivered" claims, and the seller has no recourse. So signature confirmation isn't a failsafe," a seller wrote.
The first question out of the gate by sellers was, "We already have coverage for delivery issues when we use Amazon Buy Shipping. Why should we spend money on signature confirmation when we are already covered for delivery issues?"
One asked why Amazon didn't automatically require signature confirmation on high-risk orders and require the *buyer* to pay for it.
One seller questioned why Amazon would want sellers to attempt to deliver high-risk orders at all. "If you already know a "delivery address" has "delivery problems", why would we have to deal with that customer at all!?! The fix for bad buyers is sellers paying more for shipping? Instead of this foolishness, if the machine learning identifies a high-risk order, how bout we have the option to cancel said order without it affecting our metrics!?"
One seller pointed out that some buyers don't want signature-confirmation and cited an example of such a case where the buyer refused delivery and left low feedback with "horrible comments about my company" that Amazon refused to remove.
Another seller confirmed the experience, writing, "In the past, we have received negative feedback because they buyer was inconvenienced by the signature requirement. Amazon wouldn't remove it, of course."
You can find the June 23rd announcement and seller comments on
Amazon Seller Central, let us know what you think.