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Ecommerce brands in India lose an estimated ₹3,000–₹5,000 crore annually due to marketplace disputes — and that number is only rising with increased order volumes and return rates. According to industry estimates, up to 30% of online orders result in some form of dispute, ranging from damage claims and false returns to “item not received” complaints.
From the seller’s perspective, these numbers paint a frustrating picture. While marketplaces are rightly focused on creating trust for customers, the lack of seller-side visibility often means brands are left footing the bill — even when they’re not at fault.
More than 70% of disputes are resolved in favor of the customer — not because the seller made a mistake, but because they can’t prove otherwise.
Picture this: it’s a busy Friday evening at a high-volume D2C warehouse. A premium home décor brand has just shipped out its final batch of orders, including a fragile glass vase destined for a customer in Bangalore. Days later, a dispute is raised — the customer claims the vase arrived shattered and demands a full refund. Without concrete proof of how the order was packed and shipped, the marketplace sides with the buyer. The brand not only loses the sale but absorbs reverse logistics costs and suffers a hit to its seller performance score. Incidents like these, though seemingly minor, can add up to lakhs in losses — and they happen every single day.
The root cause? Lack of visibility.
When there's no video management system in place, disputes become a guessing game. Paper trails and verbal reports carry little weight in resolution teams. But with warehouse video surveillance and smart warehouse monitoring, brands gain access to indisputable, timestamped footage of every step — picking, packing, sealing, and handoff.
In this blog, we explore the hidden cost of not having visual proof — and how the best video management system for ecommerce warehouses can help brands protect their business from fake damage claims, prevent false return requests on marketplaces, and regain control over the post-purchase experience. If you’re looking for a reliable VMS solution for warehouse packing and returns, this is your blueprint.
The Real Cost of Marketplace Disputes
On paper, a single refund might not seem like a big deal. But for fast-moving D2C brands, the real cost of marketplace disputes is far deeper than the refund amount. These disputes trigger a cascading series of operational, financial, and reputational setbacks that chip away at profitability.
Let’s break it down:
- Direct Financial Losses: Every return that’s approved without fault from your end results in lost product value, unrecoverable shipping and handling charges, and often a restocking fee or penalty from the marketplace.
- Customer-Favoring Platforms: Most marketplaces operate with a “customer-first” policy. This approach is designed to build consumer trust — but from the seller’s perspective, it can be problematic. If you can’t provide video proof that the product was packed correctly and shipped in perfect condition, the default assumption is seller fault. Without a video management system, you’re already on the back foot.
- Operational Overhead: Your customer support and ops teams waste hours gathering screenshots, warehouse logs, or internal notes to build a weak case — often in vain. When there’s no warehouse video surveillance, even honest internal audits can’t help you defend against false claims.
- Seller Rating Impact: Repeated disputes — even unjustified ones — pull down your performance metrics. On marketplaces like Amazon, Flipkart, or Meesho, this can mean lower visibility, temporary delisting, or account suspension.
- Cumulative Margin Erosion: Multiply these losses across hundreds or thousands of orders, and you’re looking at a significant dent in your margins. For high-volume brands, this can quietly drain lakhs every quarter without showing up directly on the P&L.
In short, every dispute that lacks proof is not just a one-time headache — it’s a long-term leak in your business. That’s why more brands are turning to smart warehouse monitoring systems that capture high-resolution, timestamped footage across all critical fulfillment checkpoints. Having real-time visibility doesn’t just help in dispute resolution — it deters fraudulent claims in the first place.
Types of Marketplace Disputes E-commerce Sellers Face
Disputes aren’t just occasional hiccups — they’re a daily operational reality for D2C brands selling across marketplaces. And they can arise at any point in the order lifecycle. Whether it's a delivery gone wrong or a customer simply gaming the system, each dispute demands one thing from the seller: proof. Without it, the cost is yours to bear.
Here are the most common types of marketplace disputes:
- Damaged or Defective Products
A customer claims the item arrived broken, scratched, or in unusable condition. Even if it left your warehouse in perfect shape, you’re liable unless you can prove otherwise. - Wrong Item Received
One of the most frequent and frustrating disputes — the buyer insists the product delivered wasn’t what they ordered. It could be a similar SKU, a size mix-up, or a completely different item. And again, without footage from your packing station, there’s little room to defend your process. - Order Not Received / Delayed Delivery
Even when logistics handovers happen on time, packages may be marked “lost in transit” or experience delays that buyers escalate. With warehouse video surveillance, you can at least confirm timely dispatch and proper packaging to protect your end of the operation. - Return / Refund Disagreements
Customers sometimes cite dissatisfaction, damage, or other reasons for a return — even when the item is used or swapped. Without a video management system capturing the outbound shipment, you're left with nothing but a paper invoice and the customer's word against yours. - Payment & Chargeback Issues
These include unauthorized transactions, duplicate payments, or fraud flags. While not always linked to warehouse ops, chargebacks often intersect with delivery disputes or mismatched claims that a good VMS solution for warehouse packing and returns can help disprove.
According to marketplace operations experts like Code23, these disputes most often stem from issues around product quality, fulfillment errors, and return handling — all areas where clear, time-stamped video footage can make the difference between recovered revenue and a forced loss.
The takeaway? If your warehouse isn’t equipped with a smart warehouse monitoring system, you’re operating at a disadvantage. Proof isn’t just helpful — it’s non-negotiable.
How Video Management Systems Work in eCommerce Warehouses
In today’s fast-paced ecommerce operations, a video management system (VMS) is no longer just a security layer — it’s a critical infrastructure tool for accuracy, accountability, and order-level traceability.
At its core, a VMS is the command center for all your surveillance cameras and recordings. Think of it as the brain of your camera network: it records and stores footage, enables rapid searching by order ID or timestamp, and offers smart alerts or analytics when something looks off.
Modern cloud-based systems eliminate the outdated silos of old DVR/NVR setups. Instead, warehouse teams can instantly access any camera feed or past footage from a centralized dashboard — an essential capability when dealing with high volumes and fast turnarounds.
But what truly sets a VMS apart for ecommerce brands is its ability to integrate directly with your warehouse and order workflows.
According to an article by Solink, a modern VMS lets you “view, record, store, and manage footage across your business.” But in an ecommerce warehouse, it’s more than that — it’s your truth oracle. It replaces hearsay with visual proof. When disputes arise, you no longer rely on internal logs or assumptions. You rely on what the camera saw.
In short, smart warehouse monitoring powered by VMS transforms video from passive recording into an operational superpower. It protects margins, saves time, and most importantly, ensures every order is backed by traceable proof.
Introducing EasyVMS: Built for Indian Ecommerce Warehouses
While many video management solutions promise surveillance and recording, few are purpose-built for the unique needs of Indian ecommerce operations. That’s where EasyVMS, EasyEcom’s native video management system, truly stands apart.
EasyVMS auto-tags packing footage to individual order IDs, ensuring every shipment has a verifiable video trail right from the dashboard. Whether you're running a single warehouse or managing multiple fulfillment centers, EasyVMS centralizes surveillance, order mapping, and auditability in one intuitive platform.
Here’s how EasyVMS works at the packing station:
- As an order is scanned and packed, EasyVMS captures and stores the entire packing process — including product condition, packaging materials used, and final sealing.
- This footage is then linked directly to the order ID inside your EasyEcom system.
- In the event of a dispute, you simply enter the order number and retrieve the exact moment the product left your facility — no time wasted scrubbing through video logs.
For brands battling frequent disputes, false return claims, or delivery denials, EasyVMS provides indisputable proof — exactly when and where it’s needed.
Key Benefits of VMS for D2C Brands
For fast-growing D2C brands, marketplace success depends on speed, accuracy, and trust. But with rising order volumes and customer expectations, even minor fulfillment errors can lead to costly disputes and account risks. A video management system (VMS) changes that — offering more than surveillance. It becomes a core operational asset that safeguards every shipment and protects your bottom line.
Here are the most important benefits of a VMS tailored for D2C brands:
Dispute Resolution in Minutes, Not Days
Tired of spending hours defending against false return claims or “item not received” complaints? With a VMS solution for warehouse packing and returns like EasyVMS, your support team can instantly pull the exact footage of the order being picked, packed, sealed, and dispatched — all tied to the order ID. Marketplace teams can’t argue with video proof.
Protect Margins from Hidden Revenue Leaks
Every undetected false claim chips away at your profit. A smart warehouse monitoring system ensures every product leaves in good condition — and lets you prove it. That means fewer refunds, fewer chargebacks, and fewer “silent losses” eating into your P&L.
Boost Operational Accountability
With warehouse video surveillance linked to scanner and badge data, you can trace who packed which order, when, and how. If an error occurs, the footage helps identify whether it was a training gap, a genuine mistake, or a misuse — enabling faster resolution and accountability without guesswork.
Frictionless Customer Support & Compliance
When your customer support or marketplace team needs evidence, a VMS makes it easy. Search by order number, watch the exact moment the item was packed, and export footage if required. You can even set alerts for missed scans or packing anomalies — catching problems before they turn into disputes.
Build Trust with Marketplaces & Partners
Platforms like Amazon, Flipkart, and Nykaa demand seller reliability. When you can show high-definition video footage tied to every outbound shipment, it signals serious professionalism. Sellers with VMS-backed operations tend to see faster dispute closures and more favorable outcomes — because marketplaces trust hard evidence.
Conclusion: Stop Losing Crores to Disputes — Start Winning with Video Proof
In today’s competitive ecommerce landscape, marketplace disputes are inevitable — but losing money to them isn’t. Every false return claim, every damaged product allegation, every “wrong item” complaint silently drains your revenue and strains your operations.
The difference between writing off these losses and protecting your margins is clear: a best-in-class video management system designed for ecommerce warehouses.
With EasyVMS, you gain instant access to order-linked video proof — empowering your team to resolve disputes quickly, reduce costly chargebacks, and maintain impeccable marketplace reputations. Our platform transforms your warehouse into a smart, transparent operation where every package, every scan, and every shipment is backed by irrefutable evidence.
Don’t let disputes silently leak your profits. Invest in a VMS that turns video into your strongest defense and your smartest logistics partner.Get in touch with EasyEcom today to learn how our Video Management System can save you crores and strengthen your marketplace presence.
