
Appriss Retail, a leading provider of data and analytics solutions aimed at reducing retail losses, curbing returns fraud, and enhancing the consumer experience, has released a new report in collaboration with Retail Dive. The report, titled “How Important Are Returns to Customers?” delves into how retailers are managing returns, the impact of return policies on consumer behavior, and the potential drawbacks of overly restrictive policies.
The study, based on surveys of 150 retail executives and over 1,000 North American consumers, highlights the growing concerns around returns fraud and the steps retailers are taking to combat it. According to the findings, 84% of retailers have revised their return policies in the past year to mitigate fraud. However, these stricter policies come at a cost—potentially alienating customers.
Key insights from Appriss Retail’s research include:
- 55% of consumers have avoided purchasing from a retailer due to restrictive return policies.
- 36% of consumers have had a negative return experience.
- 31% of consumers have stopped shopping at certain retailers because of poor return experiences.
Despite these consumer frustrations, retailers appear confident in their approach. An overwhelming 99% of retail executives believe their customers are satisfied with their return processes.
Pedro Ramos, Chief Revenue Officer at Appriss Retail, warns that excessively strict policies, such as “no receipt, no return,” may deter fraud but can also drive away loyal customers. Appriss Retail’s AI-powered solutions aim to balance fraud prevention and customer satisfaction by providing real-time, unbiased recommendations based on a customer’s return history, helping retailers make informed decisions without jeopardizing relationships.
Fraud related to claims and appeasements—where shoppers falsely report items as damaged, defective, or missing to receive compensation—is another growing concern. Appriss Retail estimates that between $2.2 billion and $3.7 billion in fraudulent claims occur annually, contributing to the $21 billion to $35 billion spent by retailers on claims and appeasements overall.
Other common types of returns fraud reported by retailers include:
- 48% cite the use of counterfeit receipts or e-receipts.
- 47% mention “bracketing,” where customers buy multiple sizes or colors with the intent to return some.
- 39% report employee-related fraud or collusion.
Appriss Retail’s AI-driven solutions enable retailers to personalize return experiences based on individual shopping histories, reducing fraud while improving customer satisfaction. In fact, nearly 90% of consumers said they would be more likely to make additional purchases if they had a positive return experience.
The full report, “How Important Are Returns to Customers?” offers valuable insights for retailers seeking to balance fraud reduction with consumer satisfaction.
For more details, read the complete report.
About Appriss Retail
Appriss Retail provides advanced fraud and abuse protection for retailers across all channels and transactions. With over 20 years of expertise in retail data science, Appriss Retail serves more than 60 of the top 100 U.S. retailers, covering one-third of all U.S. omnichannel sales. The company operates in 45 countries across six continents, offering solutions that drive measurable performance improvements and significant returns on investment. For more information, visit Appriss Retail’s website or LinkedIn page.