The refund abuse growth
Who hasn’t faced issues with e-commerce deliveries? We've all experienced damaged packages or deliveries marked as complete when they're not. But have you considered the sellers' perspective? Retailers and marketplaces receive thousands of such complaints, along with unexpected return items.
Addressing these issues is challenging when the truth relies solely on the good faith and conflicting accounts of those involved. Essentially, there's little recourse for sellers, who find themselves in an increasingly difficult position without a real solution.
This problem is growing for several reasons. First, logistics services worldwide remain fragile. Many shipping providers still require manual signatures, a practice just beginning to change, lagging behind more advanced services like bike renting or food delivery.
Second, e-commerce businesses must maintain excellent customer experiences to stay competitive, often leading to lenient return policies and quick refunds.
Finally several recent factors contribute to this growth:
- The COVID-19 pandemic increased e-commerce volumes, straining operations and popularizing no-signature deliveries.
- The rise of social media has spread fraud methods, even professionalizing them through social platforms.
- The expansion of C2B and C2C businesses, which often lack structured operations, leaving more room for fraud.
There's no easy fix. Shipping providers are trying to adapt but can't keep up with fraudsters. Social media and new business models aren't going away.
Fortunately, there are a lot of solutions.
Chaynon is working on some of them to reduce both fraud opportunities at the root but also reduce fraud itself.
