Policy Abuse Trends Impacting U.S. & U.K. Retailers


Forter, which describes itself as the “trust platform for digital commerce,” published its latest consumer sentiment report, revealing that 68 percent of consumers in the U.S. and U.K. “believe retailers make it easy to abuse flexible return policies. In fact, nearly half (49 percent) admit to abusing retailers’ policies in the last 12 months.”

The report, titled “Flexible Policies, Risky Business,” was based on a poll conducted by The Harris Poll of more than 4,000 consumers. It focused on online shopping and return habits amid growing economic pressure.

“Some U.S. and U.K. shoppers who have taken advantage of companies’ policies when shopping online in the last 12 months (29 percent) are turning to policy abuse to avoid paying full price,” the report’s authors said, adding that 33 percent of those polled “say they exploit flexible return policies to wardrobe — use and then return — expensive items they couldn’t otherwise afford.” The report noted that the latter percentage jumps to 46 percent when looking at younger U.S. shoppers and 48 percent of younger U.K. consumers aged 18 to 34.

“But traditional returns abuse isn’t the only troubling behavior,” the report stated. “Nearly two-thirds (58 percent) of U.S. and U.K. consumers say that it’s easy to open multiple online accounts with the same retailer to take advantage of promotions.”

Some of the consumers polled are also exploiting free shipping perks, the researchers said, noting that 21 percent of respondents “admit to deliberately over-purchasing to qualify for free shipping, with the intent to return the extra items.”

The data also showed how financial concerns are impacting consumer behavior. “While retailers grapple with this policy abuse, they must also navigate consumers who are becoming more selective in how and where they shop due to financial concerns,” the report’s authors said. “Nearly half (48 percent) of U.S. and U.K. consumers are buying more from retailers with lenient return policies due to financial concerns.”

The survey showed that 63 percent of consumers polled “say they rely on retailers’ promotions and free perks more now than in the past.” However, 16 percent reported that they have stopped shopping with a retailer altogether “because they made their return policy stricter.”

Ozge Ozcan, chief customer officer at Forter, said policy abuse “is costing retailers billions of dollars. While consumers react to economic shifts, becoming more intentional and savvier with their spending, retailers must adjust, too.”

“Our report found that a one-size-fits-all approach to any policy — whether it’s returns, promotions or loyalty programs — will leave today’s retailers exposed,” Ozcan said. “Instead, by knowing who they’re doing business with, retailers can strike the crucial balance between customer-friendly policies and protection against serial abuse.”



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