According to the National Retail Federation (NRF), the total value of retail returns in 2024 was expected to reach $890 billion, equating to 17% of all merchandise sales in the US — up from 15% in 2023. The same report finds that 93% of retailers believe retail fraud and other exploitative behavior is a significant issue for their business.
The threat of returns and fraud attempts within the industry is nothing new, but with the numbers continuing to grow, retailers are understandably concerned and need to take swift action to mitigate the damage caused by both. With the right technology, brands can effectively manage returns to maximize resale speed and ensure seamless experiences for customers and in-store associates alike.
Managing Returns
Returns can be costly to a business and leave a huge impact, and this isn't limited to the US. In the UK, 11% of all returns in 2024 came from "serial returners" — shoppers who frequently buy and return items — pushing returns to a new tipping point that cost the industry £27 billion last year. It's a global challenge: slow reverse supply chains disrupt the operational effort behind returned items, products get lost or delayed, and poor stock visibility disrupts the chain further. The longer it takes retailers to get products back onto the shop floor, the lower the item's resale value — in some cases, items can't be resold at all. The faster retailers can push products through the return supply chain, the sooner they can be sold, and the better the sale price.
Deploying RFID within stores alongside the right order management system (OMS) lets retailers accurately track returned items. Item-level RFID gives brands complete visibility of all products, including returns — reactivating tags when items come back lets retailers accurately view products moving through the supply chain, see where products go missing, and identify where inefficiencies lie. In response, they can optimize the reverse supply chain to get items back on the shop floor quickly, maximizing new sales opportunities on returned products.
Retailers can take this further and turn returns into additional sales opportunities through clienteling. Teamwork Commerce's clienteling tools, powered by Endear, use data-driven CRM to enable seamless communication with clients and product recommendations based on purchase history. When customers return products in-store, retailers get an additional interaction with them — clienteling technology, paired with mobile POS, equips retailers to turn in-store returns into sales opportunities, creating a more personalized experience and strengthening customer relationships along the way.
Managing Fraud
Returns can feel messy and chaotic, but retailers need to remain vigilant, with returns fraud remaining a prominent issue within the industry.
When implemented with point of sale (POS) solutions, RFID technology can also help navigate in-store fraud attempts. Retailers who have adopted RFID have all products marked with small, readable tags. When items are brought back for return, associates can check the tag to determine the product's origin — where it was purchased, and whether it was simply lifted from a shelf without being bought at all. The data within the tags can also show exactly when the item was purchased, confirming it falls within the returns timeframe while speeding up the process and detecting fraud attempts.
The Takeaway
To take on 2025 in full force, it's important that retailers take control of their returns process and stay vigilant against fraud. Implementing item-level RFID with the right CRM platform can empower brands to navigate this issue, maximizing opportunities around returns and minimizing successful fraud attempts.