Connect with us

Headlines

Retailers Losing $90 Billion Annually Due to Bogus Returns, Promo Abuse

E-commerce businesses looking for a sure-fire solution to stop the fraud.

mm

Published

on

A new study puts a big number on the damages that e-commerce businesses sustain each year due to bad actors who abuse policies designed to make things easier for shoppers, PYMNTS reports.

According to research by PYMNTS in collaboration with Forter, abuse of customer service policies costs large U.S. retailers (those which generate more than $100 million in annual revenue) as much as a combined $89 billion per year. Retailers may lose up to 2.2 percent in annual revenue as a result of these abuses.

The most prevalent is promotion abuse, or taking undue advantage of rewards, sales and other promotions. Additionally, return abuse – when a consumer returns an item that’s not eligible for return – impacts 60 percent of large retailers.

As for a solution, a sure-fire one hasn’t yet been developed. “Many brands have taken the approach of developing their own methods of tracking these types of fraud, but few are successful in tracking repeat offenders and blocking new fraud attempts simultaneously,” the article says.

Read more at PYMNTS.

Advertisement

Since launching in 2014, INVISION has won 23 international journalism awards for its publication and website. Contact INVISION's editors at [email protected].

SPONSORED VIDEO

See What’s Possible with EssilorLuxottica 360

When you have 360 degrees of support, you can grow your independent practice with confidence. When that support comes from industry leaders with a proven track record of providing partnership opportunities which help independent practices maximize their success – well, the possibilities are endless. From increased visibility through cutting-edge marketing to enhanced patient experiences leading to a better capture rate and everything in between, see what’s possible with EssilorLuxottica 360. Learn more at 360.EssilorLuxottica.com. Powering your practice. Empowering you.

Promoted Headlines

Advertisement

Advertisement

Subscribe

INVISIONMAG.COM
BULLETINS

Get the most important news and business ideas for eyecare professionals every weekday from INVISION.

Advertisement

Most Popular