The SupplyChainBrain Podcast
Consumer Return Fraud: How Bad Is It?
Oct 11, 2024
David Morin, Chief Customer Officer at Narvar, dives into the staggering $101 billion problem of consumer return fraud impacting e-commerce. He discusses the thin line retailers must walk between preventing fraud and preserving customer satisfaction. Innovative solutions like boxless returns and advanced loyalty programs are highlighted as strategies to improve the experience while combating fraud. Morin also emphasizes the role of technology and personalized customer data in navigating this complex issue, making it a must-listen for retail professionals.
23:42
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Quick takeaways
- Consumer return fraud, particularly due to the rise of e-commerce, has resulted in over $101 billion in losses for retailers in 2023.
- Retailers are balancing strategies like boxless returns and data-driven insights to combat fraud while maintaining a positive experience for honest customers.
Deep dives
The Surge of Consumer Return Fraud
Consumer return fraud is a growing issue, particularly in the e-commerce sector, with losses exceeding $101 billion in 2023. This surge is attributed to the rapid expansion of online shopping, especially during and after COVID-19, which has created more opportunities for fraudulent activities among consumers. The spectrum of return fraud includes relatively harmless practices, such as using items briefly before returning them, to more serious offenses like sending back empty boxes or claiming refunds for items not purchased. As e-commerce becomes increasingly mainstream, retailers face the challenge of addressing this issue while still providing a positive shopping experience for genuine customers.
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