Returns, refunds & exchanges: How to stop good customers from paying the price of policy abuse

Must-have insights on returns and refunds fraud

October 2024

Inside this playbook

Did you know? Returns, refunds, and exchanges are a $394 billion expense for ecommerce merchants worldwide, and rampant fraud and abuse are a hidden menace within this massive cost center. To manage costs, merchants are implementing stricter policies and fees – in turn penalizing good customers and putting business growth at risk.

In our new playbook, Returns, refunds & exchanges: How to stop good customers from paying the price of policy abuse, you’ll discover how hundreds of your peers around the world are dealing with the challenges of returns fraud and refunds abuse, and where the opportunities lie to definitively prevent these abuses without compromising your customer experience. 

Riskified commissioned Opinium and the Center for Economics and Business Research (CEBR) to gather valuable intel and create cost insights based on economic modeling via a survey of: 

  • 500+ directors of ecommerce with oversight of fraud, risk & policy abuse
  • Ecommerce enterprises with at least $50M in annual revenue
  • From representative countries: USA, Mexico, Brazil, U.K., France, Australia, New Zealand, Germany, Austria, Switzerland

 

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Table of contents

01. The state of returns, refunds, and exchanges today

02.  Customers are starting to pay the price of policy abuse

03.  Behind the curtain: Why is it so challenging to get returns and refunds right?  

04.  How an identity-based approach can reduce abuse and drive better customer experiences

05.  Looking ahead: What should merchants do now?