- Slice of Retail
- Posts
- Loop Unveils Industry Data Report on Escalating Returns Fraud
Loop Unveils Industry Data Report on Escalating Returns Fraud
Slice of Retail Team
August 15, 2024
Key Highlights:
44% of retailers identify returns fraud as a major impact factor.
99% of companies experienced returns fraud or policy abuse in the last 12 months.
Tightened return policies and return fees among top actions to combat fraud.
Source (Business Wire)
Notable Quote:
“Our latest industry data report reveals a notable rise in returns fraud and policy abuse over the past year, highlighting the importance of understanding consumer behavior not just in purchasing, but also in returns. For every $100 in returned merchandise, retailers lose $10.40 to returns fraud.”
Our Take:
The latest data report from Loop underscores the growing challenge retailers face with returns fraud and policy abuse, which now rivals other operational concerns like costs and supply chain disruptions. The comprehensive survey highlights not only the prevalence of these issues but also the crucial need for more effective detection and prevention measures. Loop’s data-driven approach and actionable insights offer a valuable roadmap for retailers aiming to balance fraud prevention with customer satisfaction. Implementing advanced tools like fraud detection models and return fees can empower retailers to address these challenges while enhancing their return processes overall.