Policy Abuse and Its Impact on Merchants: Global Benchmarks 2023
Groundbreaking new research uncovers the causes, motivations, and impact of policy abuse and fraud – find out how your business compares
September 2023
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Inside this groundbreaking research
Lenient return policies and promos have become the gold standard for merchants that want to acquire loyal customers. But these same strategies have opened them up to rampant policy abuse. In fact, Riskified’s groundbreaking data shows that policy abuse costs merchants even more than chargebacks.
For the first time, get a comprehensive look at the alarming scope of policy abuse related to returns, refunds, promotions, and reseller tactics and how it impacts merchants financially and operationally. The pervasive problem of policy abuse means merchants need to acquire a deep understanding of the problem to be able to take action.
Riskified engaged WBR Insights to interview more than 300 merchants worldwide to discover:
- Causes and motivations behind policy abuse
- How seasonality and holiday purchasing affect policy abuse
- How much policy abuse harms merchant profitability
- The organization-wide toll of policy abuse
Executive Summary
Methodology
01 How Pervasive is Policy Abuse? The Current State
02 What Motivates Customers to Abuse Merchant Policies?
03 How Merchants Address Policy Abuse and Its Impact
04 How Policy Abuse Varies by Region: APAC, EMEA, LATAM, and US
05 Ways Retailers Plan to Address Fraud and Abuse in the Near Term
06 Key Suggestions for Overcoming Policy Abuse
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