People Are Scoring Big By Taking Advantage Of Costco’s Return Policy
dennizn/Shutterstock By Amberly Mckee/Updated: Aug. 31, 2022 8:13 am EST
According to Free Privacy Policy, it’s important for retailers to have a suitable return policy in order to gain the trust of their shoppers. It also helps to increase sales — a survey by Narvar notes that 49% of consumers “actively check” a store’s refund policy before buying anything when shopping online. A good return policy is beneficial to the business implementing it as well; it helps create rules regarding what can and can’t be returned as well as track any fraudulent returns.
Unfortunately, policies aren’t always fool-proof, and customers with malicious intent still find ways to cheat the system. Per Loss Prevention Media, $428 billion in merchandise is returned each year, and at least $25.3 billion of that is considered fraudulent. Chargebacks911 notes there are many ways fraud can occur in the return process, including returning stolen items, faking receipts, and “receipt switching” — a process where a customer makes a purchase, receives a receipt, and comes back later to present the receipt along with a new item they haven’t yet paid for. Although thieves do exist, there are still plenty of people who return items innocently. However, it’s likely that a combination of innocent and fraudulent returns alike are helping people score big off of Costco’s return policy.
People Are Scoring Big By Taking Advantage Of Costco’s Return Policy
dennizn/Shutterstock
By Amberly Mckee/Updated: Aug. 31, 2022 8:13 am EST
According to Free Privacy Policy, it’s important for retailers to have a suitable return policy in order to gain the trust of their shoppers. It also helps to increase sales — a survey by Narvar notes that 49% of consumers “actively check” a store’s refund policy before buying anything when shopping online. A good return policy is beneficial to the business implementing it as well; it helps create rules regarding what can and can’t be returned as well as track any fraudulent returns.
Unfortunately, policies aren’t always fool-proof, and customers with malicious intent still find ways to cheat the system. Per Loss Prevention Media, $428 billion in merchandise is returned each year, and at least $25.3 billion of that is considered fraudulent. Chargebacks911 notes there are many ways fraud can occur in the return process, including returning stolen items, faking receipts, and “receipt switching” — a process where a customer makes a purchase, receives a receipt, and comes back later to present the receipt along with a new item they haven’t yet paid for. Although thieves do exist, there are still plenty of people who return items innocently. However, it’s likely that a combination of innocent and fraudulent returns alike are helping people score big off of Costco’s return policy.
Unfortunately, policies aren’t always fool-proof, and customers with malicious intent still find ways to cheat the system. Per Loss Prevention Media, $428 billion in merchandise is returned each year, and at least $25.3 billion of that is considered fraudulent. Chargebacks911 notes there are many ways fraud can occur in the return process, including returning stolen items, faking receipts, and “receipt switching” — a process where a customer makes a purchase, receives a receipt, and comes back later to present the receipt along with a new item they haven’t yet paid for. Although thieves do exist, there are still plenty of people who return items innocently. However, it’s likely that a combination of innocent and fraudulent returns alike are helping people score big off of Costco’s return policy.
Returned Costco items are being discounted
Returns — and navigating return policies — are a common part of retail, but at least re-sellers and buyers alike can find ways to benefit off the headache.
