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Fraud Detection and Mitigation in Shipping and Logistics


A stone in place of a brand-new smartphone, counterfeit luxury handbags, sub-standard quality of products with no option to return, fake makeup kits — we have all heard about the various kinds of e-commerce scams. These occur primarily because of the following reasons:

  • Seller is a fraudulent businessperson selling counterfeit goods to the buyer
  • Third-party scammers interject the shipping and logistics, defrauding both the seller and the buyer

At Delhivery, we believe that a legal, ethical and reliable e-commerce ecosystem is critical for the country’s economic growth. To enable that, we have built solutions that detect and mitigate fraud at every stage of the process. Here are some ways in which we do it.

#1 Intelligent warehousing services

Across our 67+ fulfilment centres and 68+ hubs, we have set up checks and balances to prevent fraud, as well as errors, mishandling or misrouting of packages. Our state-of-the-art warehouse management system ensures that there is a clear record of every single package we process.

Our advanced sorting systems scan every package, detects and flags even minor mismatches and damages in the packages. This would immediately notify the business to troubleshoot and take corrective actions.

#2 Reliable courier partners

When you choose a regular courier company to ship your e-commerce products, you will not get the security and caution needed to protect your goods. Many courier companies might not be able to handle large, fragile or oddly shaped products, causing damage in transit. In some cases, the courier company will not have the processes needed to prevent theft or manipulation during transit.

Delhivery’s network of courier partners is thoroughly vetted and trained to avoid such circumstances. We hold them to high accountability processes to prevent fraud, theft or damage in transit. We ensure that they follow strict processes that eliminate the chances of any fraudulent behaviour.

#3 Real-time tracking

No product is ever lost or stolen when shipped via Delhivery. All our packages are monitored in real-time, often with GPS trackers, to ensure complete visibility. In case of any concern, we can track every package to its exact location concisely.

#4 Return-to-origin predictors

While unconditional returns policies encourage more customers to adopt online shopping, it also causes high cost to businesses, especially SMEs. Some of the most common e-commerce frauds involve returns.

Delhivery’s Return-to-Origin (RTO) predictor considers patterns of purchase and returns to predict which customer might return which product for what reason. With this, SMEs can mitigate the risks of fraud in two ways:

  • They can identify scammers who have an unreasonably high rate of returns. They can either avoid shipping to such customers or take necessary.
  • They can understand legitimate customers who want to try things but are not satisfied with the product. To help these customers, SMEs can pre-emptively address issues, offer more information upfront etc.

#5 Only reliable sellers

At Delhivery, we closely monitor all our sellers for fraudulent activity. We have a zero-tolerance policy for fraud, resulting in the discontinuation of services for sellers who ship fake products or use our services in fraudulent ways. This goes for our courier partners and delivery agents as well.

As a result, buyers have faith in sellers who ship through Delhivery.

#6 Keen ear for complaints

When in doubt, you can always call us. Delhivery offers round-the-clock support for buyers and sellers to report frauds, suspicious activities, and fake profiles. The support team will immediately raise the alarm, inform concerned stakeholders, and help with corrective actions as soon as possible.

This ensures that the seller can rectify concerns instantly. This also allows us to monitor and remove malicious agents off our platform continuously.

Choose Delhivery SME for reliable shipping and logistics

Small and medium enterprises (SMEs) entering the e-commerce market are especially vulnerable because even a handful of fraudulent transactions can affect your bottom line. To say nothing of the loss of repeat business, reputation and customer loyalty.

In addition to the nationwide network, competitive pricing, safe handling, cash-on-delivery management, and end-to-end supply chain solutions. If you are a small business looking for a trusted and hassle-free logistics and supply chain management, consider Delhivery today.

Speak to a Delhivery partner today!

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