Product Returns-Burden or Opportunity? (4)
Return rates vary by category, with auto parts, apparel and household goods in the lead. Returns also spike after the holiday season, typically in the first week of January.
Returns to retailers have increased both in dollar terms and as a percentage of total sales. Fraudulent returns have also risen, with estimates suggesting around 10% of returns are fraudulent.
That sounds alarmingly high, but return fraud takes various forms, including returning a different item or returning an empty box and claiming non-receipt. There are also people who use an item and then return it, or attempt to return a stolen item.
I know that one common practice is using the system to “borrow” merchandise at no charge. The customer buys an item for temporary use and then returns it when finished. For instance, someone might purchase clothing for a single occasion like a graduation or wedding.
Kyohei, this practice is known as “wardrobing.” Some stores try to prevent it by placing large “do not remove” tags on dresses and not accepting returns or exchanges for items without the tag. I’ve noticed certain stores also refuse refunds for items like reading materials and inflatable airbeds.
Another issue is when customers legitimately buy an item, then go to the store with the receipt, pick up an identical item from the shelf, and request a refund at the customer service desk.
We can’t all be heroes because someone has to sit on the curb and clap as they go by.
