Close Menu
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
Facebook X (Twitter) Instagram
Monday, June 2
  • Subscribe
  • Submit Content
  • About Us
    • Contact Us
  • Advertise
    • Display Advertising
    • Email Marketing Campaigns
    • Newsletter Advertising
    • Sponsored Content
    • Lead Generation Services
  • Top Product Sources
Facebook X (Twitter) Instagram
WholesaleCentral.com Blog
  • For Buyers
    • Retail News
    • Products & Suppliers
    • Ecommerce
    • Marketing & Management
    • Trade Show News
  • For Suppliers
    • Supplier News
    • Marketing & Management
    • Importing
    • Manufacturers
    • Warehousing
    • Finance
    • Show Exhibiting
  • Wholesale 101
  • Trade Show Calendar
  • Wholesale Products
WholesaleCentral.com Blog
Home»For Buyers»Retail News»Fighting Return Fraud
Retail News

Fighting Return Fraud

PublisherBy PublisherDecember 1, 2011Updated:February 6, 20232 Mins Read
Facebook Twitter Email
Share
Facebook Twitter Email

The most common type of return fraud is return of stolen merchandise. Wardrobing, the return of used non-defective merchandise, like special occasion apparel and certain electronics, also poses a huge problem, as more than six in 10 retailers (61.4 percent) say they have been victims of this activity within the past year. Yet according to the National Retail Federation’s annual Return Fraud Survey, the retail industry is estimated to lose $3.48 billion in return fraud this holiday season, down from $3.73 billion last year, thanks in part to stricter return policies. The NRF reports, “When asked if their company has ever changed its return policy to specifically address return fraud, nearly two-thirds (64 percent) said it had.”

Strict Return Policies and In-store Procedures Used to Deter Return Fraud

Among some of the stricter features retailers are adopting as part of their return policy are specific windows of time in which the return can be made, detailed reshipping rules, store credit returns, and the need for identification and a receipt. The survey found that 2.89 percent of returns with a receipt are fraudulent, but those without a receipt have a higher chance of fraud, estimated around 14.2 percent. According to the NRF, “As a result, six in 10 retailers now require customers returning items without a receipt to show identification. Slightly more than 10 percent of retailers require customers making returns with a receipt to also show ID.”

Not all retailers have taken the time to focus on possible fraud this holiday. In fact, “Most respondents (82.5 percent) state their return policies will remain unchanged this holiday season, on par with last year,” confirms the Return Fraud Survey. However, spotting return fraud may be difficult for some retailers. As a result, retail stores being adversely affected by returns should look for these signs: high shrink rate, dramatic increase in number of returns, return policy not being enforced, and increasing number of markdowns due to returns.

This piece was adapted from an article by the National Retail Federation.

fraud security theft
Share. Facebook Twitter Email
Previous ArticleGrabzz Card For Good Health
Next Article Handling Holiday Excess

Related Posts

5 Essential Tax Season Preparation Tips

January 24, 2024

7 Tips for Wholesale Inventory Management

January 23, 2024

Prepare Your Business for Supply Chain Disruptions

December 30, 2023
Sign Up for Buyer Updates
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

how-to
Wholesale 101 for Buyers

Amazon Return Pallets For Sale: How to Profit

11 Mins ReadUpdated:August 9, 2024

A big trend among some online sellers is buying Amazon return pallets and overstock and…

Retail News

5 Essential Tax Season Preparation Tips

10 Mins ReadUpdated:August 8, 2024

Are you ready for tax season? April 18 is approaching quickly, and many day-to-day decisions…

Ecommerce

7 Steps to Create Successful Shipping for Your Business

6 Mins ReadUpdated:August 8, 2024

by Sidney Karanja Today’s business environment is more globalized and complex than ever before. In…

Product News

Overstock Liquidations

6 Mins ReadUpdated:August 9, 2024

Overstock inventory refers to the excess goods or merchandise that a retailer has on hand…

Latest Posts

Crafting a Marketing Strategy for Electronics Retailers

January 21, 2025

Effective Digital Marketing Strategies for Health & Wellness Brands

January 21, 2025

Mastering Beauty Ads: 10 Strategies for Engaging Your Audience | Blog.Wholesalecentrl.com 

January 21, 2025

Jewelry Marketing Strategies: How to Attract Customers and Boost Sales in a Competitive Market

December 31, 2024

How to Open a Gift Shop: A Step-By-Step Guide

December 23, 2024

Online Marketing Calendar for 2025: Don’t Miss These Critical Dates

December 17, 2024
  • About Us
  • Subscribe
  • Contact Us
  • Advertise
  • Find Wholesale Sources
WholesaleCentral.com

Join the Buyer's Network

Get news & updates only for retailers.

Follow Us:

Copyright © 2025. Sumner Communications, Inc..

Type above and press Enter to search. Press Esc to cancel.