The growing issue of return fraud in the retail sector is becoming more problematic due to policies that allow customers to keep their returned items. Retailers are facing a significant challenge, as fraudulent returns are projected to cost $24.5 billion out of $148 billion in total returns following the 2023 holiday season. This surge in fraud is partly fueled by online shopping, where fraudulent shoppers claim merchandise was never received, return stolen goods, or send back different items. Despite a positive performance in both in-store and online holiday sales, major retailers like Walmart and Amazon are losing millions due to such fraudulent activities. In response retailers are beginning to implement stricter return policies, including shortening return windows and introducing return fees, to maintain profitability and competitive pricing, according to a forecast by goTRG. However, there's speculation that these stricter policies may not last, as market conditions and retailer strategies continue to evolve.
Have A Return? Retail Fraudsters Are Making That More Difficult
goTRG is a leading reverse logistics company that specializes in solving returns. goTRG's connected suite of returns management SaaS, reverse supply chain, and ReCommerce services, under one roof, delivers a true end-to-end solution for returns from initiation through resale. goTRG works with retailers, eCommerce brands, and vendors, to deliver the smartest choices for every touch movement and pricing decision, while also preventing items from unnecessarily ending up in landfills.