‘Refund’ Fraud: Myntra Loses Rs 50 Cr!

India is a country with a vast population that is increasingly accommodating the social media and internet revolution. As a result, the e-commerce industry is booming in the country with the likes of Flipkart, Amazon, Nykaa, and others leading the charge.

However, in a concerning development to the e-commerce giants, there is an increase in a detrimental mechanism pertaining to refund fraud. Online apparel portal, Myntra, a subsidiary of Flipkart has claimed Rs 50 crore loss due to refund fraud.

As claimed by Myntra, e-commerce has been losing a chunk of its revenue due to a section of its users. The issue is that these users place bulk orders on Myntra and then claim refunds saying the products don’t match, the sizes are different, and other logistical stuff.

While generic and individualistic refunds are alright, the bulk refunds is where Myntra is apparently losing money. Apparently, the e-commerce giant has been losing out on revenue as these fraudsters raise complaints about the quantity of the order or the quality of the same to claim refunds.

As mentioned by the company, for instance, a fraudster orders 10 pairs of shoes and he he/she is delivered the same. But once the full order is delivered, the customer raises a false complaint in the name of quantity mismatch or size mismatch. They either say they received only 5 pieces, or claim that the delivered product’s color is different from what they ordered. They then claim a partial refund for the order. Myntra is losing out on revenue for the lost products and also compensating for the wrong quantity claim.

There are so many cases of such fraud that Myntra has lost Rs 50 crore nationwide in just a few months. This would seriously affect the sustainability of these e-commerce companies if this refund fraud isn’t addressed at the earliest.