How do you combat scammers as FBM with non tracked items under $10

Hey sellers,

Recently ive been dealing with what seems like an attack, our untracked items (sent in envelopes) under $10 are getting a significant amount of “we did not receive it” reports.

We do not ship empty envelopes and this is. happening way too much now and killing our account. Other marketplaces have low cost envelopes with tracking which combat this, but not Amazon.

I dont know if this is random or some sort of competitor attack? We tried charging shipping before and it kills sales and baking in the price for tracking on these items we lose out to the competition.

I am completely lost here for a solution to this?

Does anyone here have experience with this and have any ideas?

Thank you!!