A new report reveals the staggering impact of returns fraud on the retail industry, highlighting the need for innovative loss prevention strategies.
The report, titled “2024 Consumer Returns in the Retail Industry Report,” was done in collaboration with Deloitte. Appriss Retail is a provider of data and analytics solutions aimed at reducing retail losses and combating return and claim fraud. The company said it supports one-third of all U.S. omnichannel sales across 150,000 retail locations along with serving 60 of the top 100 U.S. retailers.
The report also showed that fraudulent returns and claims resulted in a $103 billion loss for retailers, with 15.14 percent of all returns deemed fraudulent, meaning a customer attempted to return an item to a retailer for a refund, knowing the item did not qualify for a refund according to the store’s policy, authors of the report said. Some of the key findings include that 60 percent of retailers polled reported incidents of ‘wardrobing,’ or the act of consumers buying an item, using the merchandise, and then returning it, the report’s authors said adding that 55 percent of retail respondents cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks. The poll also found that 48 percent of retailers surveyed faced occurrences of returning stolen merchandise. Michael Osborne, chief executive officer Appriss Retail, said, ‘It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face. Our annual research highlights the serious problem of returns fraud, and why an AI-powered, data-driven approach to loss prevention can reduce fraud and keep consumers loyal
RETURNS FRAUD RETAIL LOSS CONSUMER RETURNS FRAUDULENT RETURNS LOSS PREVENTION
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Organized Retail Theft Costs Retailers Billions in TexasRecent news reports from Houston highlight the increasing problem of organized retail theft (ORT). Three individuals were arrested for stealing thousands of dollars worth of clothing from a Lululemon store, while in another incident, three others broke into a store to steal merchandise. Additional cases involve the theft of wine bottles from various stores. Experts say ORT is more than just shoplifting, as stolen goods are resold for profit, costing retailers billions annually.
Read more »
Retailers Tighten Return Policies to Combat FraudMajor retailers like Amazon, REI, and Target are implementing stricter return policies to address the growing issue of return fraud. These changes may affect consumers, with some facing processing fees or potential return denials.
Read more »
Holiday return rate is expected to be 17% higher than usual: ExpertsThe Better Business Bureau recommends checking the retailers' policy for exchanges and returns.
Read more »
Retailers Brace for 17% Surge in Returns After Holiday ShoppingThe holiday shopping season is typically followed by a spike in returns, known as 'Returnuary.' This year, retailers anticipate a 17% increase in returns compared to usual, amounting to a staggering $890 billion in returned goods. Several factors contribute to this trend, including consumers buying multiple sizes or colors and returning unwanted items, known as 'bracketing,' and 'wardrobing,' where purchases are made for specific events and then returned.
Read more »
Holiday Returns Surge: Retailers Face $890 Billion in Returned GoodsRetailers are bracing for a surge in holiday returns this year, with expectations of a 17% increase compared to usual rates. This trend, dubbed 'Returnuary,' is driven by several factors, including increased online shopping, 'bracketing,' and 'wardrobing' behaviors.
Read more »
Returnuary Spikes: Retailers Brace for Record Holiday ReturnsRetailers anticipate a 17% surge in returns this year following the holiday shopping season, a trend dubbed 'Returnuary.' The increase, estimated to reach $890 billion in returned goods, is attributed to consumers' comfort with buying and returning multiple sizes, colors, and items for specific events, known as 'wardrobing.' This poses a significant challenge for retailers, impacting both revenue and sustainability due to the environmental burden of managing returns.
Read more »