Tiếng ViệtIn 2023, retailers grappled with the challenge of managing merchandise returns, as highlighted by a study from the National Retail Federation and Appriss Retail. Despite efforts to minimize returns, the industry faces ongoing complexities. Mark Mathews, NRF’s Executive Director of Research, underscores the industry’s commitment to innovative strategies. Return fraud adds complexity, requiring a delicate balance between prevention and customer satisfaction. Michael Osborne, CEO of Appriss Retail, notes the transformative impact of online channels. In this dynamic landscape, retailers strive to meet consumer expectations while navigating merchandise return intricacies, especially as the holiday season approaches.
In 2023, retailers faced the challenge of handling approximately $743 billion worth of returned merchandise, as highlighted in a recent study by the National Retail Federation and Appriss Retail. To provide context, this amount accounted for 14.5% of the overall sales, underscoring the substantial impact of returns on the retail landscape.
Despite concerted efforts by many retailers to minimize consumer returns, this significant figure emphasizes the ongoing complexity of managing product returns in the industry.
According to Mark Mathews, the Executive Director of Research at the National Retail Federation (NRF), retailers persistently explore and adopt innovative strategies to curtail losses stemming from returns, particularly those involving fraudulent activities. Concurrently, they strive to enhance the overall shopping experience for their customers.
In the realm of retail, the year 2023 saw return fraud cause a significant dent in profits, accounting for a staggering $101 billion in overall losses for retailers. To put it into perspective, for every $100 worth of returned merchandise, retailers experienced a loss of $13.70 due to return fraud. This underscores the ongoing challenges faced by retailers in navigating the delicate balance between fraud prevention and customer satisfaction.
Mark Mathews, the Executive Director of Research at the National Retail Federation (NRF), highlighted that retailers are actively taking steps to address the challenge of returns. These measures include offering more detailed descriptions regarding sizing and fit for online purchases, as well as implementing requirements for a receipt with returned items.
In a broader context, the industry is placing a strong emphasis on minimizing the volume of merchandise returned, both in physical stores and online. Efforts are being made to enhance the accuracy of product information provided to customers during online purchases and to streamline the return process by enforcing receipt requirements.
The report further reveals a notable disparity in return rates between online and brick-and-mortar stores. Online orders experienced a higher return rate, with 17.6% of merchandise being returned. In contrast, purely physical stores saw a lower return rate of just 10.02%. This divergence emphasizes the unique challenges faced by the online retail sector in managing and mitigating returns.
Michael Osborne, the CEO of Appriss Retail, emphasized the profound influence of the ongoing expansion of online channels on retail sales and returns. Notably, the emergence of a new category in online returns—tracking claims and appeasements—illustrates this impact. This category encompasses reports related to missed, late, or damaged deliveries and stands out as the fastest-growing segment for return fraud.
In terms of reported return fraud from retailers over the past year, a significant portion can be attributed to specific types of fraudulent activities. Nearly half, or 49%, of retailers cited returns involving used but non-defective merchandise, while 44% reported returns of shoplifted or stolen items. Additionally, 37% of retailers mentioned returns made with fraudulent or stolen tender, and 20% reported experiencing fraud perpetrated by organized retail crime groups during the year. These statistics shed light on the multifaceted challenges faced by retailers in combating various forms of return fraud.
During the holiday season, data indicates a modest uptick in the return rate compared to the rest of the year. The study forecasts that approximately $148 billion worth of holiday merchandise is anticipated to be returned, accounting for just over 15% of holiday sales. However, retailers are bracing themselves for a substantial challenge, as they expect nearly $25 billion in fraudulent returns during the holiday period. This underscores the persistent issue of return fraud, which continues to pose a significant concern for retailers, particularly during peak shopping seasons.
Source: Furnituretoday.com
