Forter puts spotlight on major returns abuse challenge

38% of online shoppers say that return policies have a major impact on their decision to purchase from retailers, according to research by e-commerce fraud prevention venture, Forter.

The company surveyed 1,000 Americans. Nearly one in four have abandoned a shopping cart due to poor returns options, and 31% of consumers would not shop again at a retailer following a difficult experience.

With 10% of all items sold in the US sent back, merchandise returns is forecast to cost American retailers $550 billion in 2020. Fraudulent returns comprise a significant percentage of this sum, costing retailers $24 billion annually.

“Well established retailers are curtailing or altogether eliminating their flexible returns policies because of the cost of abuse. It’s unfortunate that a few people can spoil a terrific consumer experience for everyone,” says Michael Reitblat, Co-founder and CEO, Forter.

“Returns abuse is a major challenge for retailers. It impacts profitability and threatens their ability to provide a competitive customer experience,” comments Vikrant Gandhi, Industry Director at Frost & Sullivan.

“Forter’s Returns Abuse Protection enables merchants to accurately identify abusers, both online and offline, so they can offer consumer-friendly policies. With the collective intelligence of its global merchant network, Forter analyses consumer behaviour across all customer touch points to identify and stop abuse.”