The majority of UK brands (64%) see returns fraud as the trend with the most impact on their company, followed by policy abuse (49%) and high operational costs (37%), according to a new Loop survey.
UK retailers reported that the most common form of fraud or abuse they faced was returns on ineligible items (51%). Brands also face quality disputes (45%), wardrobing (35%), cases where a customer requested a refund with the intention to keep the item (33%), and bracketing (31%).
Furthermore, the recently published DeliveryX Returns 2024 report highlighted that item-not-received false claims have seen an increase of 35%, while 32% of UK consumers admitted to filing false damaged claims in order to keep the item and receive a refund.
As part of Loop’s partner perspective in the DeliveryX Returns report, John-David Klausner SVP, business development & strategic alliances, Loop Returns, noted: “It’s important for brands to keep a close eye on their shopper data. If a shopper has a history of large purchases followed by returns, refuse returns all together or charge higher return fees to discourage the behaviour.
“They can also reduce bracketing by thinking back to the root and helping customers anticipate fit and style, e.g. show CGC of candid product shots, fit guides, videos, etc.
“Lastly, brands can educate customers on the negative impact of bracketing on sustainability which could give eco conscious shoppers pause before purchasing multiple sizes.”
Loop’s survey stressed that retailers must strike a balance between fighting back against returns fraud and abuse, whilst ensuring that they maintain a positive customer experience that won’t alienate loyal shoppers.
Respondents said that they prioritise the customer experience over fraud or abuse prevention, with 53% responding that way. While 31% of respondents said they treated the two issues equally, and just 17% said that preventing fraud and abuse was more important than the customer experience.
Read more from Loop in the DeliveryX Returns 2024 report.
The report uses the results of our ConsumerX research to present how charging for returns has impacted customer loyalty.
With the balance of green initiatives, cost saving strategies and winning customer loyalty, retailers are spinning a lot of plates – and returns are something else to be managed. This report looks to showcase how the top retailers aren’t leaving returns out of their operational equations, and by handling returns with care are being seen as reliable and sustainable.
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