Retailers are quietly changing their return policies - here's why you should be on the lookout this Black Friday

"'Tis the season for giving - and that means 'tis the season for shopping. Maybe you'll splurge on a Black Friday or Cyber Monday deal, thinking, "I'll just return it if they don't like it." But before you click "buy," it's worth knowing that many retailers have quietly tightened their return policies in recent years. As a marketing professor, I study how retailers manage the flood of returns that follow big shopping events like these, and what it reveals about the hidden costs of convenience."

"Returns might seem like a routine part of doing business, but they're anything but trivial. According to the National Retail Federation, returns cost U.S. retailers almost US$890 billion each year. Part of that staggering figure comes from returns fraud, which includes everything from consumers buying and wearing items once before returning them - a practice known as "wardrobing " - to more deceptive acts such as falsely claiming an item never arrived."

Returns cost U.S. retailers nearly US$890 billion annually and include substantial losses from returns fraud, reverse logistics and unsellable inventory. Fraud ranges from wardrobing—buying and wearing items once before returning them—to deceptive claims such as reporting non-delivery. Reverse logistics requires shipping, inspecting, restocking and often repackaging, which adds labor and operational expenses and reduces profit margins. Many returned products cannot be resold at full price and must be liquidated, generating lost revenue. The rise of e-commerce increased return rates by removing sensory cues like fit, fabric feel and true color, prompting tighter return policies.

Read at The Conversation