Giving your loyal customers the experience they deserve
With a shifting global commerce climate, flexible returns policies are no longer the exception, but the rule. Merchant returns policies help determine how and where customers shop.
With the volume of new online shoppers at 2x greater than pre-COVID-19 levels, businesses across the globe are investing in their digital and omnichannel strategies to best accommodate shoppers’ needs and attract these new shoppers to their brand.
However, without the proper fraud and abuse prevention in place, returns abuse is costing merchants significant revenue.
The impact of returns abuse
Returns abuse is different from fraud committed by online criminals. The abuse occurs instead when good customers (or those who may look like “good” customers), take advantage of merchants’ returns programs or policies for their own gain.
Return abuse can result in:
- Lost profits
Every $100 of returned items costs merchants approximately $5.90 in returns fraud
- Increased operational overhead
Without the right solution in place to protect the business and discern legitimate returns from abusive ones, merchants experience increased costs associated with processing, shipping, and restocking inventory.
- Poor customer experience
The costs of returns abuse can cause merchants to curb their differentiated and more flexible policies which leads to poor shopping experiences for their customers and diminished brand loyalty.
80% of shoppers are deterred by inconvenient policies and expect free returns
Offer flexible returns, but reduce the abuse
Merchants can deliver a best-in-class returns abuse program — all while protecting profits and enhancing customer experience. To do so, merchants must ensure they have the right solution in place to accurately identify returns abuse and enforce business policies, without negatively impacting their best customers.
To find out more about the impact and true costs Returns Abuse may be having on your business,
read the full report here.