Retailers tighten return policies as billions flock to online shopping

[L3 : As billions shop online, retailers tighten return policies ]
WITH ANALYSTS ESTIMATING THAT SHOPPERS WOULD SPEND AT LEAST $13 BILLION DOLLARS ON CYBER MONDAY, SOME RETAILERS ARE UPPING THE FEES WHEN IT COMES TO RETURNS.
RETAILERS SAY THE FEES ARE NECESSARY BECAUSE OF THE INCREASE IN RETURN FRAUD. ACCORDING TO THE NATIONAL RETAIL FEDERATION, OF $743 BILLION IN RETURNS IN 2023, $101 BILLION, OR 14 % WERE FRAUDULENT, THAT’S A 10 % JUMP FROM THE YEAR BEFORE AND THAT STEALING IS CUTTING IN TO REVENUE.
THE CONSULTING FIRM MCKINSEY SAYS RETAILERS PAY ANYWHERE FROM $21 TO ABOUT $45, TO PROCESS A SINGLE RETURN. AS RESULT, COMPANIES ARE PASSING SOME OF THAT COST DOWN TO CONSUMERS. SAKS FIFTH AVENUE NOW CHARGES $9.95 FOR RETURNS BY MAIL.
NEIMAN CHARGES A SIMILAR FEE, ESPECIALLY IF ITEMS ARE RETURNED AFTER A CERTAIN DATE.
SAKS IS NOW CONDUCTING MORE THOROUGH INSPECTIONS OF RETURNED PRODUCTS IN ORDER TO CUT DOWN ON FRAUD.
BUT THOSE FEES AND SCRUTINY, HAVE LED TO SOME PUSH BACK FROM ANGRY CUSTOMERS WHEN THE RETAILER, SENDS THEIR ITEM BACK WITHOUT A REFUND. ONE CUSTOMER OF SAKS EVEN WENT ON SOCIAL MEDIA TO COMPLAIN AND CROWD SOURCE WHEN THE COMPANY REFUSED TO ISSUE A REFUND ON A DRESS THAT COST NEARLY $700. THAT SAME CUSTOMER ALSO FILED A COMPLAINT WITH THE BETTER BUSINESS BUREAU.
IT’S WORTH NOTING THAT SHOPPERS CAN TYPICALLY RETURN ONLINE PURCHASES IN THE PHYSICAL BRICK-AND MORTAR STORE, FOR FREE.
THE BOTTOM LINE IS, AS THE HOLIDAY SHOPPING SEASON KICKS INTO HIGH GEAR : BUYER BEWARE. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS AP