What is returns abuse?

Returns abuse is when customers take advantage of or exploit a business’s returns policy for profit or material gain.

Some common types of returns abuse include:

• Wardrobing: Using an item, then returning it for a refund. This is common for clothing items, electronics, and other goods.
• Price/Package swapping: Returning a different item than the one purchased, or swapping the price tag on an item with a different, lower-priced one.
• Receipt/identity fraud: Using a false receipt or someone else’s receipt to falsely return an item.
• Free trial fraud: Using free trial periods repeatedly without purchasing
• Empty box scams: Returning a literally empty box or an unrelated item, like a brick, rock, or garbage.
• Excessive returns: When a user habitually returns a high percentage of the purchases they make from you, to an excessive degree.
• Returning stolen goods: When someone returns items or goods they stole, either from the store directly or from another consumer.

Returns abuse is particularly prevalent in online shopping, and can severely harm a store’s revenue.