The customer has a right to return a purchase for various reasons. Some are more serious than others. While fraudulent returns and late arrivals are expected, there are also more mundane reasons. For example, a product needs to be correctly sized, or the size needs to be corrected for the customer.
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Late Arrival
The return of merchandise is a common problem for eCommerce stores. Besides providing accurate delivery estimates and real-time delivery updates, retailers should also make the return process easy. This will reduce the number of returns.
A customer’s decision to return a purchase varies from person to person. Some people do not like what they ordered and want to change their minds. Another common reason for returns is if the item differs from what was advertised.
Some returned items include chargers, phones, and other accessories. Sometimes, the wrong size is shipped, or the material needs to be more accurate than the picture. Other reasons for returns may include defective goods.
It’s important to note that the most common reason for return is that the product does not meet expectations. However, there are other situations where a consumer may want to keep a purchase for another use. For example, if the buyer is getting married, they might want to keep their wedding dress. If they find an item they need later, they might want to keep it for a “just in case” situation.
Regardless of the reason, the customer has every right to be upset. Customers prefer to avoid getting deals that match their expectations. Creating an effective return policy is essential to consumer loyalty, starting with having kiosks for returns for these items.
Wardrobing
Wardrobing is a form of consumer fraud in which consumers buy expensive items and return them after using them. It is one of the biggest challenges for the retail industry and is caused by dishonest shoppers who try to pass off a faulty or worn item as new.
Wardrobing involves a variety of methods. Most commonly, the shopper removes the tag and then returns the merchandise. Sometimes the shopper does not even realize that the item has been tampered with.
Some retailers do their best to prevent wardrobing. For instance, Bloomingdale’s attaches 3-inch black plastic tags to dresses. This is hard to hide and is likely to be replaced with tampering.
Wardrobing can also occur in e-commerce stores. Retailers have to account for increased labor processing costs and must make sure they are doing a thorough inspection of returned items. To protect their business, they may request photos before accepting the thing.
Another wardrobing scheme involves customers taking photos of new items they want to buy for social media. These images are then sent back to the retailer.
The snap-and-send-back phenomenon, which has become a trend among influencers, can create social pressures to keep up with fashion bloggers. It can deepen buyer’s remorse.
If a shopper is honest, they will understand the risk and be outraged if they discover another customer has already worn their item. However, they may continue the wardrobing behavior if they are not genuine.
Wrong-Sizing
One of the most common reasons customers return a purchase is the wrong sizing. There are many reasons why a customer would order a product the wrong size.
Wrong sizing is one of the most frustrating aspects of shopping in a brick-and-mortar store. Incorrect sizes are standard with apparel, footwear, and accessories.
It may be challenging to figure out what exactly constitutes “wrong sizing,” but there are ways to minimize these errors. A good rule of thumb is to ask your customers for their sizes when they place an order.
Another way to avoid the wrong sizing is to create a complete list of compatible items. This helps reduce chargebacks and ensures that your customers use their time effectively.
Several online tools can help retailers monitor the return rate of their products. They can also identify opportunities to improve.
As with any e-commerce business, merchants must consider all possible return options. Having a robust and reliable return policy is a must.
The cost of handling returned items can be three times as much as the original delivery.
Creating an effective customer return policy is a crucial part of consumer loyalty. While you’re at it, consider offering a swap discount. This can encourage your customer to keep the item instead of sending it back.
Fraudulent Returns
Return fraud is a growing problem for retailers. In fact, it costs retailers around $25.3 billion a year. It does not include the cost of staffing return desks or the damage it can do to a company’s reputation.
The problem is worsened by the shift in the retail industry towards e-commerce. Customers can easily order merchandise online and receive it in the mail. However, when it arrives, it may be damaged or missing. They may be tempted to return the item for a full refund.
To combat return fraud, merchants need to tighten their return policies. They also need to be prepared to educate their employees. Educating employees can help them recognize and avoid the most common return scams.
One scam involves stripping a cellphone of its valuable parts and reassembling it for a refund. Another is the bricking scam. Usually associated with electronics, bricking occurs when a customer breaks an item before returning it. Typically, the item is replaced with the interior weighted with stones or coins.
Other types of scams include employee fraud. Often, shoplifters will use stolen receipts to initiate the return process. Some retailers require customers to present a valid ID before making a return.
These are just a few of the many ways to mitigate the risks. Using innovative technology and leveraging existing fraud detection solutions can help retailers identify and track dishonest customers.
