Retailers are opting for "keep it" policies for returns, where they refund customers without requiring customers to ship the items back, especially when return costs are prohibitive. goTRG CEO Sender Shamiss notes that return expenses can reach 75% to 100% of an item's value, primarily due to shipping costs. This approach is common for low-value items, with 59% of companies adopting it and 27% applying it to goods priced up to $20. To prevent abuse of these policies, companies use sophisticated algorithms to assess customer loyalty and the likelihood of fraud, considering factors like the customer's history and refund frequency. This strategy helps businesses avoid excessive costs while maintaining customer trust and deterring fraud.
