Thu, 24 September 2015
Detective Johnson of the Show Low Police Department talks about a Fraudulent activity that is costing the Mountain money.
The problem has historically caused retailers to raise prices for shoppers in order to offset and recover the losses incurred from fraudulent returns. Alternatively, many stores have created stricter return policies such as “no receipt, no return” or imposed return time restrictions such as a 30-day limit on all returns that impact all shoppers.
A certain percentage of returned merchandise must be marked down or discarded in order to sell the product. After being returned, out-of-season clothing may have to be placed on the sale rack, for example. Or retailers may be forced to discard returned lingerie for health reasons. The retail company also incurs restocking time from returns, which could be time an associate spends driving new sales revenue by assisting customers.