Tech giant, Amazon has reportedly closed down more than 13,000 Pakistani seller accounts due to allegations of committing fraud. Small business owners opting to become Amazon Sellers is a trend that has been on a constant rise over the past few years due to government support under Pakistan Post’s different offerings to promote the cottage industry and increase the country’s exports.
Mian Chunnu and Sahiwal Identified as Main Locations For Fraudulent Activities on Amazon
Moreover, Amazon has reportedly declared Mian Chanuu and Sahiwal, cities in Punjab, as fraudulent red zones because Pakistani seller accounts operating from these areas have been found involved in fraudulent activities. Sources have claimed that Amazon has also blocked the IP addresses from Mian Channu and now people from these areas are operating Pakistani seller accounts from Dubai or through the computers of other clients. As per the details, the sellers are committing frauds in different ways which are being locally referred to as kabootar (pigeon trick), rickshaw trick, carding, and filing.
In addition to this, some Pakistani seller accounts are also misusing details of publicly available companies registered in the US. For instance, they simply pick the company’s details from google and use it to buy Amazon Business Prime where they purchase the products for Amazon customers. This only works for Amazon to Amazon drop shipping, however. The seller picks the company director’s name, creates an email account, and registers Amazon Business Prime accounts.
Nearly 80,000 Pakistanis Have Opened Amazon Seller Accounts
After doing so, the seller uses the company’s EIN to remove tax on purchasing. At the end of the year, the company pays all the sales tax which they never received. Moreover, as per Amazon policy, they give a one-month free trial to their business customers. The sellers use these Amazon prime accounts for only 29 days and the day when the amount is deducted, they cancel that prime account and buy another one. It is noteworthy that 80,000 Pakistanis have opened Amazon seller accounts, second only to China.