IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v70y2023ics0969698922002387.html
   My bibliography  Save this article

Understanding fraudulent returns and mitigation strategies in multichannel retailing

Author

Listed:
  • Zhang, Danni
  • Frei, Regina
  • Senyo, P.K.
  • Bayer, Steffen
  • Gerding, Enrico
  • Wills, Gary
  • Beck, Adrian

Abstract

The growth of online retailing has exceeded expectations over the last few years. This has resulted in high product return rates, which retailers are struggling with due to complex and costly returns processing, logistics, and financial implications. Additionally, online returns come with increased opportunities for returns fraud. During the pandemic, new types of returns fraud have emerged and returns fraud rates have increased across all channels. Based on a series of semi-structured interviews with retailers and retail experts, we investigate factors that enable fraudulent returns from consumers' and retailers’ perspectives and outline strategies for retailers to combat product returns fraud in a multichannel environment, leading to a framework for retail fraud. We contribute critical insights to research and practices on understanding and addressing a growing problem that has economic, social and environmental implications.

Suggested Citation

  • Zhang, Danni & Frei, Regina & Senyo, P.K. & Bayer, Steffen & Gerding, Enrico & Wills, Gary & Beck, Adrian, 2023. "Understanding fraudulent returns and mitigation strategies in multichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
  • Handle: RePEc:eee:joreco:v:70:y:2023:i:c:s0969698922002387
    DOI: 10.1016/j.jretconser.2022.103145
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922002387
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2022.103145?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chang, Hsiu-Hua & Yang, Ting-Shan, 2022. "Consumer rights or unethical behaviors: Exploring the impacts of retailer return policies," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    2. Chang, Hsiu-Hua & Guo, Yi-Yan, 2021. "Online fraudulent returns in Taiwan: The impacts of e-retailers’ transaction ethics and consumer personality," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    3. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    4. El Kihal, Siham & Shehu, Edlira, 2022. "It's not only what they buy, it's also what they keep: Linking marketing instruments to product returns," Journal of Retailing, Elsevier, vol. 98(3), pages 558-571.
    5. Janakiraman, Narayan & Syrdal, Holly A. & Freling, Ryan, 2016. "The Effect of Return Policy Leniency on Consumer Purchase and Return Decisions: A Meta-analytic Review," Journal of Retailing, Elsevier, vol. 92(2), pages 226-235.
    6. Akturk, M. Serkan & Ketzenberg, Michael & Yıldız, Barış, 2021. "Managing consumer returns with technology-enabled countermeasures," Omega, Elsevier, vol. 102(C).
    7. Guangzhi Shang & Bikram P. Ghosh & Michael R. Galbreth, 2017. "Optimal Retail Return Policies with Wardrobing," Production and Operations Management, Production and Operations Management Society, vol. 26(7), pages 1315-1332, July.
    8. Regina Frei & Lisa Jack & Sally‐Ann Krzyzaniak, 2020. "Sustainable reverse supply chains and circular economy in multichannel retail returns," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1925-1940, July.
    9. Seger-Guttmann, Tali & Vilnai-Yavetz, Iris & Wang, Chen-Ya & Petruzzellis, Luca, 2018. "Illegitimate returns as a trigger for customers’ ethical dissonance," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 120-131.
    10. Pantano, Eleonora & Pizzi, Gabriele & Scarpi, Daniele & Dennis, Charles, 2020. "Competing during a pandemic? Retailers’ ups and downs during the COVID-19 outbreak," Journal of Business Research, Elsevier, vol. 116(C), pages 209-213.
    11. Harris, Lloyd C., 2008. "Fraudulent Return Proclivity: An Empirical Analysis," Journal of Retailing, Elsevier, vol. 84(4), pages 461-476.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pieper, Nadine & Woisetschläger, David M., 2024. "Customer misbehavior in access-based mobility services: An examination of prevention strategies," Journal of Business Research, Elsevier, vol. 171(C).
    2. Hu, Jianhao & Zhang, Xuan & Chen, Hanyu(Yuki) & Li, Wanyue, 2024. "When it rains, it pours? The impact of weather on customer returns in the brick-and-mortar retail store," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    3. Mayr, Kathrin & Teller, Christoph, 2023. "Customer deviance in retailing: Managers’ emotional support and employees’ affective wellbeing," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    4. Das, Lipsa & Kunja, Sambashiva Rao, 2024. "Why do consumers return products? A qualitative exploration of online product return behaviour of young consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Jing & Yu, Bo & Chen, Bintong & Liu, Zhuojun, 2023. "Lenient vs. stringent returns policies in the presence of fraudulent returns: The role of customers’ fairness perceptions," Omega, Elsevier, vol. 117(C).
    2. von Zahn, Moritz & Bauer, Kevin & Mihale-Wilson, Cristina & Jagow, Johanna & Speicher, Max & Hinz, Oliver, 2022. "The smart green nudge: Reducing product returns through enriched digital footprints & causal machine learning," SAFE Working Paper Series 363, Leibniz Institute for Financial Research SAFE, revised 2022.
    3. Chang, Hsiu-Hua & Yang, Ting-Shan, 2022. "Consumer rights or unethical behaviors: Exploring the impacts of retailer return policies," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    4. Hu, Jianhao & Zhang, Xuan & Chen, Hanyu(Yuki) & Li, Wanyue, 2024. "When it rains, it pours? The impact of weather on customer returns in the brick-and-mortar retail store," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    5. Lauren Skinner Beitelspacher & Thomas L. Baker & Adam Rapp & Dhruv Grewal, 2018. "Understanding the long-term implications of retailer returns in business-to-business relationships," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 252-272, March.
    6. Daunt, Kate L. & Harris, Lloyd C., 2011. "Customers acting badly: Evidence from the hospitality industry," Journal of Business Research, Elsevier, vol. 64(10), pages 1034-1042, October.
    7. Khouja, Moutaz & Hammami, Ramzi, 2023. "Optimizing price, order quantity, and return policy in the presence of consumer opportunistic behavior for online retailers," European Journal of Operational Research, Elsevier, vol. 309(2), pages 683-703.
    8. Ülkü, M. Ali & Gürler, Ülkü, 2018. "The impact of abusing return policies: A newsvendor model with opportunistic consumers," International Journal of Production Economics, Elsevier, vol. 203(C), pages 124-133.
    9. Mainardes, Emerson Wagner & Coutinho, Ananda Raquel Silva & Alves, Helena Maria Batista, 2023. "The influence of the ethics of E-retailers on online customer experience and customer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    10. Cătălin Grădinaru & Ștefan-Alexandru Catană & Sorin George Toma & Andreea Barbu, 2022. "An Empirical Research of Students’ Perceptions Regarding M-Commerce Acquisitions during the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    11. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    12. Cui, Hailong & Rajagopalan, Sampath & Ward, Amy R., 2020. "Predicting product return volume using machine learning methods," European Journal of Operational Research, Elsevier, vol. 281(3), pages 612-627.
    13. Jeong, Dayun & Ko, Eunju & Taylor, Charles R., 2023. "Don't touch the Merchandise! Factors associated with consumer preference for contact free shopping," Journal of Business Research, Elsevier, vol. 154(C).
    14. Daria Dzyabura & Siham El Kihal & John R. Hauser & Marat Ibragimov, 2023. "Leveraging the Power of Images in Managing Product Return Rates," Marketing Science, INFORMS, vol. 42(6), pages 1125-1142, November.
    15. Eleonora Annunziata & Tommaso Pucci & Jacopo Cammeo & Lorenzo Zanni & Marco Frey, 2023. "The mediating role of exogenous shocks in green purchase intention: evidence from italian fashion industry in the Covid-19 era," Italian Journal of Marketing, Springer, vol. 2023(1), pages 59-79, March.
    16. Kateryna Lysenko-Ryba & Dominik Zimon, 2021. "Customer Behavioral Reactions to Negative Experiences during the Product Return," Sustainability, MDPI, vol. 13(2), pages 1-14, January.
    17. Seger-Guttmann, Tali, 2019. "Customers' irrational beliefs: Scale development and validation," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 54-66.
    18. Fan, Huirong & Khouja, Moutaz & Zhou, Jing, 2022. "Design of win-win return policies for online retailers," European Journal of Operational Research, Elsevier, vol. 301(2), pages 675-693.
    19. Huixin Liu & Feng Du, 2023. "Research on E-Commerce Platforms’ Return Policies Considering Consumers Abusing Return Policies," Sustainability, MDPI, vol. 15(18), pages 1-19, September.
    20. Huseyn Abdulla & James D. Abbey & Michael Ketzenberg, 2022. "How consumers value retailer's return policy leniency levers: An empirical investigation," Production and Operations Management, Production and Operations Management Society, vol. 31(4), pages 1719-1733, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:70:y:2023:i:c:s0969698922002387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.