A new report by Appriss Retail reveals the link between strict return policies and consumer purchasing behaviour, claiming that 55% of consumers have avoided shopping at certain retailers due to restrictive return policies.
This avoidance is rooted in negative return experiences, with 36% of consumers reporting at least one unsatisfactory return experience. Further, 31% of consumers have stopped shopping at specific retailers because of such policies.
Despite these statistics, 99% of retail executives believe they are delivering satisfactory return experiences, pointing to a clear disconnect between retailer perception and customer experience.
However, Appriss Retail’s Chief Revenue Officer, Pedro Ramos, cautions that overly strict policies, like “no receipt, no return,” could alienate loyal customers. The report suggests the need for balance, using AI-powered solutions to reduce fraud without harming customer relationships.
Brands are also cautious about the increasing issue of claims and appeasement fraud, where customers file fraudulent claims for refunds on damaged or undelivered goods. Retailers are estimated to spend between $21 billion and $35 billion annually on claims and appeasements, with $2.2 billion to $3.7 billion being fraudulent.
Other common forms of return fraud include the use of counterfeit receipts (48%) and bracketing, where customers buy multiple sizes or colors with the intent to return some (47%).