Retailers understand that offering a blended customer experience that is split between online and in-store purchases will often end in returns. There are a number of reasons that a customer will return their order to a retailer and most of them are met with a calm understanding from the retailer. Genuine returns can lead way to customers finding additional products they would’ve otherwise never bought, but the returns that are more criminally motivated can haunt a retailer forever. This post will provide a deep dive into the return rates faced by retailers, in addition to the ways that they can defend against criminally motivated returns.
As most returns are attributed to customers’ believing the product they received is too unlike what they expected, it’s best for retailers to reimagine the landing pages of their products. Who wouldn’t return a product that’s delivered looking nothing like what they ordered? Retailers must provide the most detailed description for their products, in addition to the most realistic and unedited images of their products. Going the extra mile for sizing information, such as measurements, also helps combat the nearly 52% rate of returns specifically related to sizing.
As previously mentioned, though retailers have a lenient return policy, it’s still in their best interest to attempt to limit the exploitation of the policy. There are situations where their return policies do benefit the retailer, however. For example, customers ordering products with intent to return them, but end up receiving them and loving them means the retailer likely won’t see that product returned.
With the volume of online orders for retailers rising at such rates, the rate at which returns are made also increased. Within 2020, retailers saw a nearly 70% jump between the previous year for returns. With online shoppers looking to abuse retailers through scam practices known as “wardrobing” and “bracketing,” more and more retailers were forced to deal with excessive returns. Limiting the ways in which they’re able to exploited is imperative for retailers hoping to eliminate excess returns.
Fraudulent activity is often the biggest worry for retailers dealing with returns at a consistent clip. Sometimes customers will attempt to launder money from stolen credit cards through returns. Businesses without anti-fraud tools should invest in them, as they’re capable of blocking transactions from stolen cards. Then the retailer is able to offer refunds to the original cardholder. Reducing the costs of returns on retailers is also made possible through some of these tools. There are even organizations out there that offer such professional services, with tailor made solutions for your business.
Though many retailers are more interested in ways to improve their dynamic revenue growth, it’s important to also pay attention to the ways that customers may be taking advantage of some of the policies in place. In particular, retailers should always be watching out for customers trying to cheat the system and conduct fraudulent activity through these return opportunities. For more information on how your retail organization can guard itself from these attacks, take a minute to read on to the infographic featured alongside this post. Courtesy of Signature Payments.
