Tackling return policy abuse

Feb 29, 2024
Written by WR Communications

In a recent survey conducted by return management platform Loop Returns, concerning insights emerged regarding consumer behaviors in e-commerce returns. The findings indicate a significant challenge for retailers, with 39% of respondents admitting to either engaging in return policy abuse or knowing someone who has in the past year.

Of particular concern is the frequency of such behaviors, with 20% to 30% of shoppers admitting to habitual misconduct, such as wearing or using items with the intention of returning them weekly. Additionally, “bracketing,” where shoppers order multiple items to determine size or fit, is a common practice for 54% of respondents.

Interestingly, charging a return fee could deter 37% of consumers from engaging in fraudulent activities. However, retailers should tread cautiously, as tightening return policies might not always yield desired outcomes. Despite 89% of retailers making returns more costly or restrictive, 59% reported increased return rates.

Understanding consumer motivations behind returns is crucial. The survey found that financial necessity, event-specific needs, and lenient return policies were significant factors.

The survey, conducted between Nov. 22 and Dec. 3, 2023, underscores the urgency for retailers to address return policy abuse comprehensively. By implementing strategies to mitigate abuse while enhancing the customer experience, retailers can navigate this complex landscape more effectively.

Read more: Chainstoreage.com


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