Pay-for-Shipping Scams: What Retailers Need to Know Now

A growing ecommerce fraud tactic is targeting shipping fees, putting retailers at risk of chargebacks and lost trust.

What’s Happening

Pay-for-shipping scams exploit a retailer’s desire to fulfill orders quickly. Fraudsters pose as customers, shipping partners, or even courier services, convincing retailers to pay shipping-related fees upfront.

In many cases, the original “sale” itself is fraudulent, or the scammer disappears after collecting shipping payments.

Because shipping is often handled outside of the main checkout flow, scammers rely on urgency, confusion, and off-platform communication to succeed.

How Pay-for-Shipping Scams Work

These scams can take several forms, but common tactics include:

• Fake payment confirmations: Fraudsters send doctored screenshots or emails claiming payment was completed, followed by a request to cover shipping fees separately.
• Phishing links posing as shipment updates: Fraudsters place ads on platforms like Google, Meta, and Instagram to reach a broad audience, promoting counterfeit offers or fake discounts.
• Bogus shipping services: In a common fake shipping company scam, criminals impersonate trusted logistics companies and charge retailers for fraudulent delivery services.
• Excess shipping fee extraction: After an order is placed, the “customer” claims special shipping requirements that require additional payment.
• Parcel delivery scams with identity theft: Stolen identities are used to place orders, creating downstream losses when payments are reversed.

Each version relies on pushing the retailer to act before verifying.

Who’s Being Targeted

While any ecommerce business can be affected, scammers tend to focus on:

• Small and mid-sized retailers without dedicated fraud teams
• Marketplace sellers operating across multiple platforms
• Direct-to-consumer ecommerce businesses handling fulfillment internally

These businesses often move fast to meet customer expectations—exactly what scammers exploit.

Red Flags for Retailers

Knowing what to watch for can stop a shipping scam before money changes hands.

Key warning signs include:

• Unusual payment instructions that deviate from your standard process
• Payment confirmations sent via unfamiliar email addresses or links
• Urgent pressure to pay immediately to “release” a shipment
• Billing and shipping address mismatches, especially across countries
• Requests for non-traceable payment methods, such as gift cards, crypto, or wire transfers

If something feels off, it usually is.

What Retailers Should Do

Prevention starts with process and consistency.

Retailers can reduce risk by:

• Verifying all payments independently through their payment processor or dashboard
• Requiring payment in full before shipping, including any delivery fees
• Monitoring address discrepancies and flagging high-risk orders
• Automating fraud checks to detect anomalies earlier in the workflow
• Avoiding off-platform links and requiring customers to communicate through official channels
• Training staff to recognize scam patterns, especially in fulfillment and support roles

Fraud prevention isn’t just a technology issue—it’s an operational one.

If You’ve Been Affected: Reporting & Recovery

If you suspect or confirm a pay-for-shipping scam, act quickly.

Report the scam to:

• Your payment processor
• The platform or marketplace where the sale occurred
• The Federal Trade Commission (FTC)
• Local law enforcement or a cybercrime unit
• The courier company’s fraud department, if impersonated

Take immediate recovery steps:

• Contact your bank or card issuer to stop or reverse payments
• Preserve all evidence, including emails, invoices, and links
• Reset compromised credentials and review account access logs