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← Press Releases



APPRISS RETAIL RESEARCH: 55% OF CONSUMERS HAVE AVOIDED PURCHASING FROM A
RETAILER DUE TO RETURN POLICY RESTRICTIONS


NEW RESEARCH EXPLORES THE IMPORTANCE OF RETURNS FOR CUSTOMER LOYALTY AND HOW
RETAILERS CAN STRENGTHEN RELATIONSHIPS WHILE MITIGATING RETURN FRAUD.

PRESS RELEASE FROM APPRISS RETAIL

September 27, 2024

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Press Contacts
Matthew Boncosky
Matthew.Boncosky@ketnergroup.com

LOUISVILLE, Ky. —

Appriss Retail, a leading provider of data and analytics solutions designed to
reduce retail losses, decrease returns and claims fraud and abuse, and provide a
more seamless consumer experience, today announced the release of a new report
in partnership with Retail Dive, “How Important Are Returns to Customers?” that
explores how retailers are contending with returns, the impact of returns on
consumers’ shopping decisions, and how retailers’ return policies are holding
them back.

With original research driven by Retail Dive surveys of 150 retail executives
and 1,000+ North American consumers, the report shines a spotlight on the
problems returns fraud poses for retailers and the efforts they are taking to
address it. In fact, the report found that 84% of retailers have made changes to
their returns policies to decrease returns fraud within the last year.

By focusing on adjusting their policies, however, retailers are putting customer
satisfaction and retention at risk. The Appriss Retail research found:

 * 55% of consumers report that they have decided not to buy from retailers or
   ecommerce stores due to the restrictions of their return policies.
 * 36% of consumers report that they have had at least one negative return
   experience.
 * 31% of consumers report that they have stopped shopping at certain retailers
   or ecommerce stores due to negative return experiences.

Despite this, retailers believe they are getting returns right — with 99% of
retail executives respondents saying that their consumers are satisfied with
their return experiences.

“Making a policy too strict can have consequences that really hurt retailers,”
says Pedro Ramos, Chief Revenue Officer at Appriss Retail. “Take a 'no receipt,
no return' policy — while it may deter fraud, it can also alienate loyal,
high-value customers. That's why Appriss Retail’s AI-powered solutions offer
retailers protection from returns abuse by delivering unbiased, real-time
recommendations. By analyzing a consumer’s return history, we help retailers
make smarter decisions on returns, claims, and appeasements — without
jeopardizing consumer relationships.”

Claims and appeasements fraud — which occurs when shoppers file fraudulent
claims that purchased items were damaged, defective, or not received, in order
to receive credits or cash back from retailers — is a rising problem area.
According to 2023 research from Appriss Retail, retailers spend between $21
billion and $35 billion on claims and appeasements alone — of which $2.2 billion
to $3.7 billion is fraudulent (10.5%).

Other common types of returns fraud or abuse reported by retailers include
returns using counterfeit receipts or e-receipts (48%), bracketing or customers
buying items in multiple sizes/colors with the intention of returning some
(47%), and employee returns fraud and/or collusion with external sources (39%).

By using AI-driven technology to tailor returns experiences based on their
unique shopping histories, retailers can drastically reduce returns fraud while
also facilitating more positive returns experiences. In the Appriss Retail
study, nearly 90% of consumers report they would be more likely to make
additional purchases from certain retailers or ecommerce stores if they were to
have a positive returns experience with those brands.

The full Appriss Retail research report provides retailers with expert insights
into driving down fraud and abuse without compromising consumer satisfaction. 

Read the complete report: How Important Are Returns to Customers?

###
About

Appriss Retail provides retailers with protection against fraud and abuse for
every transaction, no matter where it happens. With more than 20 years of retail
data science expertise and experience, we’ve built a collective, omnichannel
intelligence platform that is trusted by over 60 of the top 100 U.S.
retailers, covering one-third of all U.S. omnichannel sales across 150,000
locations. Globally, Appriss Retail reaches 45 countries across six
continents. The company provides relevant, actionable, and profitable collective
intelligence to retail operations, finance, marketing, and loss
prevention teams. Appriss Retail’s performance-improvement solutions yield
measurable results with a significant return on investment. For more information
about Appriss Retail, visit apprissretail.com or our LinkedIn page.


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