According to the study, 11% of retailers’ annual sales will be returned this year, and 8% of those returns are likely to be fraudulent. And while the NRF surveyed loss prevention professionals at department stores, big-box stores, and other retailers, it seems likely that returns fraud would be at least as high if not higher for online sellers.
Other results show that 38% reported in an increase in online purchases being returned to a bricks-and-mortar location, and 29% cited an increase of those returns being fraudulent.
During the holiday season, retailers expect 11% of sales to be returned, on average, down from 13% last year, and that 10% of the returns will be fraudulent, down from 11% last year.
The NRF noted that organized retail crime losses (ORC) is a growing problem, with 92% of companies surveyed reporting they had been a victim of ORC in the past year, with 71% reporting that ORC incidents were increasing. Losses averaged USD 777,877 per USD 1 billion in sales, up 7% from last year’s previous record of USD 726,351. Retailers said online selling contributed to the problem, with criminals targeting items that could be easily stolen and quickly resold.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now