U.S. retail returns hit record high, fraud claims losses reach $103 billion

It is learned that recently, according to foreign media reports, the total amount of retail merchandise returns in the United States will reach 685 billion US dollars in 2024, accounting for 13.2% of the total retail sales. Although the return rate has dropped from 14.5% in 2023 to 13.2%, the fraud problem remains serious.

According to a report jointly released by Appriss Retail and Deloitte, fraudulent returns and claims caused retailers to lose up to $103 billion in the past year, accounting for about 15.14% of all returns. These behaviors include consumers returning goods in violation of store policies to obtain refunds, or using fraudulent payment methods to purchase goods. Although retailers continue to tighten return policies to deal with such problems, fraud is still widespread, especially in the fashion industry.

The survey showed that 60% of retailers surveyed reported incidents of “snatch buying,” where consumers purchase items, use or wear them once, and then return them. 55% of retailers mentioned cases of returning merchandise obtained through fraud or theft, such as stolen credit cards, counterfeit money, gift cards or fake checks. 48% of retailers have also encountered cases of returning stolen merchandise.

Appriss CEO Michael Osborne said that strengthening traditional return policies has limited effect in reducing fraud. He suggested the use of artificial intelligence and data-driven solutions to better prevent losses while maintaining consumer loyalty.

Author ✎ Rayna/

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