Review Your Return Policy

Fraudulent returns are becoming a significant headache in the retail world. The total dollar value of false returns in the US is close to total revenue of the NFL according to a study by the Nation Retail Federation in 2015. With advances in technology, the problem is growing. Just this year a 23-year-old man was arrested for making a whopping 1.3 million if fraudulent returns! It is a tricky balance between having a happy customer and not getting ripped off. While you, the store manager or owner, know that is best for you and your store do not be afraid to limit returns. REI, for example, changed their policy limiting returns to one year.

The top 5 tips to a good return policy are:

1. Clearly state your return policy. Surprises are good sometimes, not so good at other times. If the customer is not aware of your return policy, they are much more likely to be disappointed. It is best to have your return policy on the receipt itself and a small sign by the register.

2. Carefully inspect returned merchandise. In the above scheme, the perpetrator removed parts from the computer then returned it. A careful inspection of the item may have caught that.

3. Just say NO. An honest customer is not going to be upset, or stop shopping at your store for if you refuse returns that are obviously fake. A friend of mine works at REI a customer returned a (used) calendar that was just shy of a year old. "Not enough waterfalls on it," she told the clerk. It made me wonder if one of the calendar entries was "return calendar."

4. Avoid giving cash back. A merchandise or gift card is, in most cases, a suitable way to keep your customer happy and avoid fraudulent returns.

5. Review your competitors return policy. Like pricing, having a return policy that is in line with other merchants in your industry will go a long way to keeping your customer happy while at the same time getting stuck with false returns..

If you are having shrinkage (loss of inventory) in any specific area of your store or would like a review of your loss prevention policy American Retail Supply Loss Prevention is at your service.

Bonus Tip:

One at a time: When pulling items from a showcase bring them out one piece at a time, put the product back in the locked showcase before showing another. Giving each customer your full attention will not only reduce the chance of theft it will increase your sales. -Mark Turner