Refund abuse > 𝟏% of Sales (𝐆𝐌𝐕) > 𝟏𝟎% of Margin?

We've all experienced fraud, whether as a customer or a business owner - whether it's a shipment that never arrived, a return parcel filled with rice or a supposedly brand-new tent used only for a weekend festival.

However, very few companies quantify these incidents, both in terms of frequency and financial impact 💰 . Even those that do, often avoid talking about them because of their sensitive nature.This lack of transparency results in many qualitative analyses in the mainstream media 📺 but few quantitative ones.

As Theodor W. Adorno asserted decades ago (analyzing our society), a problem that isn't quantified might as well not exist.

Let's start with return rates: statistics 📊 suggest a figure of around 𝟏𝟎% 𝐞𝐧 𝐄𝐮𝐫𝐨𝐩𝐞, and this figure is rising all the time.

Online sources estimate that more than 𝟏𝟎% of those returns are fraudulent 😈 - a figure that seems low when you consider the simple abuses of return policies, such as using a product for a few days before returning it.

Moreover, overall loss and damage rates hover around 𝟎.𝟐-𝟎.𝟓% in countries like France on outbound shipments (merchant->customer). For a marketplace with 10% commissions, this means that 𝟏𝟓% of its sales - or its sellers' already slim margins - are lost.

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If your figures differ significantly, don't hesitate to share your thoughts with us.

For a more detailed estimate of your exhibition, Chaynon offers a free audit. Don't hesitate to contact us!

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