Companies face a multifaceted balancing act bongdaso ìno controlling costs, stopping fraud and maintaining engagement and flexibility for customers.
Retailers’ ability to offer customers many happy returns is becoming more difficult and costly.
Total returns in retail amounted to 3 billion in 2023, according to a report from the National Retail Federation. That equates to 5 million in merchandise returns for every billion in sales. This year, shoppers are expected to return 0 billion in merchandise, which represents nearly 17% bongdaso ìno retailers’ annual sales, according to a recent NRF report.
Faced with the escalating challenge bongdaso ìno returns, retailers are taking diverging approaches to dealing with the issue. And while not all returns involve fraud, that is one bongdaso ìno the issues retailers are addressing. Most bongdaso ìno the retailers surveyed in the NRF’s latest report said return-related fraud and other exploitative behavior was an issue for their business.
“The rise in e-commerce shopping has led to an increase in return rates and volumes across most categories because online shoppers can’t touch and feel products before they buy,” David Morin, vice president bongdaso ìno customer strategy at returns company Narvar, told Retail Dive via email. “The notion that ‘the living room is the new fitting room,’ where consumers try items at home before deciding whether to keep them, has led retailers and brands to review their return programs, including tightening their return policies.”
Buying multiple items with the intent to return some bongdaso ìno them, also known as bracketing, has grown among younger people, the NRF found, with 51% bongdaso ìno Generation Z consumers acknowledging they’ve done it.
Morin said Narvar’s research has found rising rates bongdaso ìno what it terms “friendly fraud” — behaviors like bracketing or wardrobing, where someone buys and wears an item with the intention bongdaso ìno returning it. But Narvar also found rising rates bongdaso ìno potentially criminal return policy abuse.
“The increase in fraud, along with the heavy incurred costs to retailers, is driving a larger focus on strategies that identify potential fraudsters and create unique workflows to deter the behavior,” Morin said. “Retailers are also balancing out strategies that still reward trusted customers to maintain the sense bongdaso ìno ‘peace bongdaso ìno mind’ that is critical in returns.”
Indeed, a return abuse or fraud crackdown must be balanced with maintaining customer experience, Katherine Cullen, the NRF’s vice president bongdaso ìno industry and consumer insights, said in the organization’s latest report. Other experts echoed that perspective.
Source: https://www.supplychaindive.com/news/retail-online-returns-reverse-logistics-challenges/737716/
At the inaugural Global Air Cargo Summit, held in Antalya, Türkiye, the International Civil Aviation Organization (ICAO) forecasted that air freight volumes will grow by an...
The imposition bongdaso ìno new U.S. tariffs on foreign-made vehicles and components is causing significant disruptions in the global automotive supply chain. Airfreight, often a linchpin...
Global trade uncertainty is prompting air cargo shippers and freight forwarders to favor short-term contracts over longer-term agreements, as highlighted in a recent Xeneta...
U.S. plans to end tariff-free access for low-value shipments from China and Hong Kong, coupled with a new 145% tariff rate on Chinese imports, are projected to slash over...
Trade groups warn bongdaso ìno higher ocean shipping costs and disrupted supply chains, while U.S. officials argue the policy aims to strengthen domestic shipbuilding and enhance economic...
Since January, the Trump Administration has announced and delayed multiple tariffs on imports from Canada and Mexico, further destabilizing the cross-border freight market....
As global supply chains adjust to post-pandemic realities and shifting trade dynamics, the air cargo industry in the Asia-Pacific (APAC) region finds itself at a pivotal crossroads.
Global tonnage improved +3% in week 15 (April 7-13) after the previous week’s drop bongdaso ìno -7% as markets that had closed for the Eid-al-Fitr holiday came back on stream, but comparison...
E-commerce continues to be a key growth driver for air cargo, fueled by rising consumer demand and the rapid expansion bongdaso ìno emerging markets, even as regulatory barriers increase.
The International Air Transport Association (IATA) has maintained a positive outlook for air cargo, emphasizing that the majority bongdaso ìno global trade remains unaffected by the...
en