A Retailer’s Best Defense Strategies Against Fraudulent Purchases

Though they create a hassle that retail organizations have to resolve, returns also give way to opportunity. For example, customers returning a product could stumble upon a product they may have overlooked in their previous visit to a store and purchase it. While not every return will end up as beneficial as this example, it’s important as a retailer to understand that returns will happen, but so long as they’re genuine returns, it isn’t the biggest worst outcome. This post will provide a breakdown of the types of returns retailers often face in addition to the ways they can curb the disingenuous returns.

While it’s clear that returns are inevitable, there are some ways for retailers to attempt to limit the number they have to deal with on average. It starts with optimizing a product’s landing page. Today, the most prevalent reason for a customer returning their purchase is due to it not living up to the description or images coupled with the product. Who wouldn’t return a product that’s delivered looking nothing like what they ordered? Retailers must provide the most detailed description for their products, in addition to the most realistic and unedited images of their products. Going the extra mile for sizing information, such as measurements, also helps combat the nearly 52% rate of returns specifically related to sizing.

As previously mentioned, free returns lead way to opportunities for customers that retailers can benefit from. While free shipping is more influential, free returns come second meaning while some customers may take advantage of these return policies, others may order with intent to return but end up loving the product, so they keep it. With the surge of online orders hitting retailers nationwide as a result of COVID restrictions in the past two years, retailers are also faced with an increased rate of returns. Within 2020, retailers saw a nearly 70% jump between the previous year for returns. With online shoppers looking to abuse retailers through scam practices known as “wardrobing” and “bracketing,” more and more retailers were forced to deal with excessive returns. Limiting the ways in which they’re able to exploited is imperative for retailers hoping to eliminate excess returns.

Sometimes there are returns that are more predatory than others. Every so often, customers will make a fraudulent purchase at a retailer’s store. Often times, this is done through purchasing a product then returning it in hopes to launder money from stolen credit cards. Retailers unaware of these scams are at a major risk without the correct anti-fraud tools. With the right tools, retailers can block transactions from stolen cards and issue refunds correctly to the actual cardholders. With the right techniques, retailers can even reduce the costs they incur per return. Services offered by certified professionals are available to cater to your business whenever necessary.

Feeling as though your retail business in unprepared for some of the more predatory return policies that certain customers may attempt to take advantage of? In order to feel more comfortable, consider taking a moment to check out the infographic paired alongside this post for more information on defense strategies your business can take to guard against these attacks. Infographic courtesy of Signature Payments.


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