Returns are an inherent part of e-commerce, and every seller deals with them as a natural outcome of online buying behavior. It’s also largely driven by the category you operate in, making returns a predictable operational reality.
The reality of the average return rate in India (category-wise)
| Category | Return Rate |
|---|---|
| Apparels | 37% – 42% |
| FMCG | 28% – 33% |
| Large Appliances | 29% – 34% |
| Mobiles | 22% – 27% |
Not all returns are genuine; many sellers face fraudulent cases where the returned item doesn’t match what was originally shipped. These fake returns quietly eat into margins, often going unnoticed until the loss is already incurred.
What Happens When You Receive a Fraudulent Return?
Most marketplaces operate on a customer-first approach, where refunds are often processed quickly. For example, if you ship an iPhone worth ₹1L and receive an empty box in return, the marketplace is likely to refund the entire amount to the customer, leaving you to file a claim.
What makes this worse is that these losses don’t always appear as obvious spikes; they quietly eat into your margins over time. Each unresolved claim, each rejected dispute, becomes a small but consistent revenue leakage that compounds as your order volume grows.
Use this calculator to estimate how much revenue you could be losing due to fraudulent returns and rejected claims.
Now that you’ve quantified the potential loss, the next step is to identify how you will get your stuck money from the marketplace.
Let’s See What Proof You Can Submit to the Marketplace
To recover stuck money from marketplaces, sellers are often required to submit clear, verifiable evidence. In reality, most sellers try to piece this together manually:
- Matching order ID with return ID across different systems
- Extracting shipment details (SKU, quantity, invoice)
- Checking warehouse QC notes or manual inspection records
- Referring to courier tracking and delivery logs
- Gathering images clicked during packing or return (if available)
- Maintaining Excel sheets to track claims, status, and timelines
- Cross-verifying refund status vs actual item received
Even after doing all this hard work, you’re still less likely to successfully prove your claim. Marketplaces require strong, verifiable evidence, not fragmented data, and that’s where a claims management system starts to make a real difference.
What Is a Claims Management System for E-commerce?
A claims management system for e-commerce is a tool that helps you manage and resolve disputes with marketplaces, courier partners, and customers, using clear, verified proof.
It typically includes:
- Video and photo capture at the time of order packing
- Automated tagging of evidence to unique order IDs
- Secure cloud storage for retrieval during disputes
- Support for marketplace-specific claim formats (Amazon SAFE-T, Flipkart SPF, Myntra PPP, Meesho SAFE)
- Return verification to identify tampered or swapped products
In short, it gives you clear, time-stamped proof for every shipment, so you don’t lose claims you could have won. So what happens when you don’t have this system in place? That’s where the real losses begin.
How Video Management Software Helps You Win Claims Faster
To successfully win claims, sellers need more than scattered data; they need structured, order-level proof with complete visibility. This is exactly where a video management system bridges critical operational gaps:
If you’re managing a warehouse without a structured claims management system, here are the four gaps silently draining your margins:
1. Lack of Evident Proof
When a claim arises, marketplaces ask: ‘Do you have order-level video evidence?’ Most sellers don’t. CCTV footage is either unavailable, not order-linked, or too time-consuming to retrieve. The result? The claim gets rejected.
2. Dependency on Third-Party Footage
Some sellers rely on warehouse security vendors for video. This creates delays, version conflicts, and zero control over the process. By the time you get the clip, the claim window has closed.
3. Manual Video Retrieval Wastes Time
Even when footage exists, teams spend hours scrubbing through recordings, matching timestamps, and manually cutting clips. This isn’t scalable, especially during peak season.
4. No Visibility on Packing Efficiency
Without a system, you don’t know which packer made a mistake, which SKU has the highest error rate, or where your process breaks down. Claims happen, but root causes stay invisible
Key Features to Look for in Claims Management Software
Not all claims management software is built the same. Here’s what to evaluate when choosing a solution for your e-commerce operations:
| Feature | What It Means |
|---|---|
| Auto video & photo capture | Proof is recorded automatically, no manual effort needed |
| Order-linked evidence | Every video/photo is tied to a specific order ID for quick access |
| Condition tagging | Returned items can be marked as “Good” or “Bad” for accurate claims |
| Forward & reverse flow recording | Tracks both dispatch and return journeys |
| Marketplace-ready formats | Supports Amazon SAFE-T, Flipkart SPF, Myntra PPP, Meesho SAFE |
| Secure cloud storage | Data is safely stored with encryption and is available anytime |
| Camera-agnostic setup | Works with your existing cameras—no new hardware required |
| Multi-warehouse support | Manage all locations from one centralized dashboard |
| Packing analytics | Track performance, spot errors, and improve team accountability |
Now that you know what to look for, it’s important to choose a system that actually helps you support and win your claims. Unicommerce’s Video Management System is one such solution. Here’s why brands prefer it and how it delivers value.
Why E-commerce Brands Choose UniCapture by Unicommerce
Unicommerce’s Video Management System (UniCapture) is not a generic camera system; it is a purpose-built Video Management Solution (VMS) for a claims management system, designed specifically for the realities of Indian ecommerce operations.
Key Challenges
Next
What makes it different:
- Go live within 24 hours: minimal setup, no infrastructure overhaul
- Works through any browser with your existing cameras
- 99.93% claim settlement capability
- Supports all major marketplaces claim formats
- Up to 15% improvement in packing efficiency
- Up to 5% recovery in stock value
- Dedicated support and training
Final Thoughts: Stop Losing Winnable Claims
Selling on marketplaces gets challenging when your hard work doesn’t translate into the revenue you’ve earned, especially when fake returns and unjust claim rejections quietly erode your bottom line. The good news is that most of these losses are fully recoverable, but only with the right system in place.
When every order leaves your warehouse with timestamped, order-linked video proof, you stop defending yourself blindly. You walk into every dispute with evidence that marketplaces trust, and you start winning the claims that are rightfully yours.
FAQs
1. What is a claims management system for e-commerce?
A claims management system for e-commerce is software that helps businesses track, manage, and resolve return, damage, and refund claims efficiently using automation and proper documentation.
2. How does claims management software work?
Claims management software automates the entire process from capturing proof (like videos or images) to submitting claims and tracking their status, making claim handling faster and more accurate.
3. Why do e-commerce claims get rejected?
Most ecommerce claims are rejected due to missing proof, delayed submissions, incomplete documentation, or inability to verify product condition during dispatch.
4. How can I improve my claim success rate in e-commerce?
You can improve your claim success rate by using a claims management system, submitting claims on time, and attaching proper proof, such as order-level video evidence.
5. How does video proof help in e-commerce claims?
Video proof shows the exact condition of a product during packing and returns, helping verify claims and reduce disputes, which increases approval rates.
6. What are the benefits of using a claims management system?
A claims management system helps reduce fake returns, improve claim approval rates, speed up claim processing, and save operational time.
7. Can claims management software reduce fake returns?
Yes, by capturing proof during packing and returns, claims management software helps identify fraudulent claims and reduces losses due to fake returns.
8. Is claims management software suitable for small e-commerce businesses?
Yes, both small and large ecommerce businesses can benefit from claims management software by improving efficiency and reducing revenue loss.
9. Can a claims management system integrate with OMS or WMS?
Most modern claims management systems integrate with OMS (Order Management Systems) and WMS (Warehouse Management Systems) to streamline workflows and data tracking.
10. What should I look for in the best claims management software?
Look for features like automation, video proof capture, easy search and retrieval, cloud storage, integration capabilities, and a user-friendly dashboard.