StartNewsLegislationThe cleptogirls in physical retail, to the return abuses in e-commerce: bad faith...

The cleptogirls in physical retail, to the abuses of returns in e-commerce: normalized bad faith that causes losses

Since last year, the normalization of thefts in physical stores has taken over theInternetOn social media, hashtags like #blueberry #kleptogirls or #kleptotwt point to content based on thefts of various kinds, which internet users proudly post. The idea of transgressing the system with small thefts and still posting online generated an uncomfortable romanticization of a criminal practice.

And, if this trend gained space on the internet, it would be a mistake to think that e-commerce would be free of similar practices. It has not been today that consumers have been taking advantage of online retail through the abuse of store policies. Meanwhile, according to Signifyd, a global e-commerce anti-fraud technology company, consumer abuses are increasing.

A common example of consumer abuse occurs in returns. This type of abuse involves taking advantage of product return policies, a fair convenience created by e-commerce channels with significant investment in logistics and automation to facilitate the shopping experience.

There is a fine line between return abuses and return frauds, but both harm e-commerce as consumers and fraudsters exploit loopholes to obtain products for free or recover money improperly. Check out some maneuvers:

  • WardrobingCommon in the fashion industry, the customer buys a product, uses it, and then returns it as if it were new.
  • BracketingThe customer buys multiple versions of the same product, tries them out, and returns the ones they don't want, leaving the seller with the shipping and processing costs.
  • Fraudulent exchangereturn of a counterfeit or damaged item in place of the original.
  • Return chargebackThe customer requests a refund, claiming they returned the product, but the merchant did not receive the item.
  • Empty returnsending a box without the product or containing an irrelevant object, such as a brick or a potato, to bypass the refund system.

Online retailers invest in technology and logistics to solve return issues and thus build customer loyalty through better shopping experiences. According to a Signifyd survey, by 2025, 7 out of 10 Brazilians will have needed to return a product. This is a movement that is part of e-commerce. However, this operation, which is already costly for online commerce, becomes a serious problem when consumers take advantage to practice abuses, without realizing the extent of the losses accumulating, analyzes Laís Lima, Latam marketing director at Signifyd.

The impact on retail is significant: in 2023, global retailers incurred return costs of approximately $700 billion; in the US alone, the loss was $103 billion. The overall forecast is that this number will increase to US$1 trillion by 2030, according to estimates from the National Retail Federation and Appriss Retail, which analyze the financial impact of returns in e-commerce.

Not all returns are malicious and sometimes they may stem from habits considered lawful by consumers, as previously mentioned.bracketing"It's difficult for online stores to track return abuse because they come from legitimate customers," explains Laís.

According to Signifyd's research in Brazil, 9% of Brazilians have already purchased a product knowing they would return it, and 89% of them consider this behavior normal.

"It's difficult for online stores to track return abuse because they come from legitimate customers," explains Laís. Furthermore, e-commerce must also deal with fraudsters who appear to be legitimate buyers due to the sophisticated methods they use, the lack of unified data and system intelligence, and the fear of harming the customer experience. A combination of factors that makes it very complex to prevent losses from online returns, she adds.   

These trends point to a new challenge for online-selling brands: to decompress their margins and improve growth opportunities, they need to balance innovation and fraud protection without harming the experience of good customers, who expect quick and hassle-free exchanges and returns.

Practices such as a clear and structured return policy; authentication of returns; and restocking fees for high-value products can help reduce fraud. However, only monitoring return patterns that identify consumers with a suspicious history of abusive or fraudulent returns enables e-commerce to detect abnormal patterns and prevent abuses.

This monitoring is possible through AI-based solutions and data technology, which provide intelligence on returns and proactive loss prevention actions. "An efficient return policy does not just mean accepting returns without criteria. The use of technology is now the greatest ally in this major challenge of distinguishing legitimate consumers from fraudsters and ensuring the protection of e-commerce without harming the customer experience, not only during the purchase but also post-purchase," emphasizes Laís.

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E-Commerce Update is a leading company in the Brazilian market, specialized in producing and disseminating high-quality content about the e-commerce sector.
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