Connect with us

News

Retailers Losing $90 Billion Annually Due to Bogus Returns, Promo Abuse

E-commerce businesses still looking for the sure-fire solution

mm

Published

on

A new study puts a big number on the damages that e-commerce businesses sustain each year due to bad actors who abuse policies designed to make things easier for shoppers, PYMNTS reports.

According to research by PYMNTS in collaboration with Forter, abuse of customer service policies costs large U.S. retailers (those which generate more than $100 million in annual revenue) as much as a combined $89 billion per year. Retailers may lose up to 2.2 percent in annual revenue as a result of these abuses.

The most prevalent is promotion abuse, or taking undue advantage of rewards, sales and other promotions. Additionally, return abuse – when a consumer returns an item that’s not eligible for return – impacts 60 percent of large retailers.

As for a solution, a sure-fire one hasn’t yet been developed. “Many brands have taken the approach of developing their own methods of tracking these types of fraud, but few are successful in tracking repeat offenders and blocking new fraud attempts simultaneously,” the article says.

Read more at PYMNTS.

Advertisement

Drawing on more than 120 years of history serving the retail design market, VMSD magazine provides retail professionals with the most up-to-date, innovative retail design ideas and industry news through its industry-leading magazine, website, social media channels and bulletins.

Advertisement

SPONSORED VIDEO

Embracing Whole-Brained Thinking in the Design Journey

Strategy needs creative, and creative needs strategy—yep, having both is really the only way of unifying all disciplines with a common vernacular with an eye toward building a strong creative vision that is foundational to the processes. Hear from Bevan Bloemendaal, former VP, Global Environments & Creative Services at Timberland, how to connect the dots between disciplines, claiming and creating a clear differentiation for the brand and ensuring that any asset (experience, product, ad, store, office, home, video, game) is created with intention.

Promoted Headlines

Most Popular