New year, new tool to fight return fraud

Can a label solve one of the major challenges that online stores face?

New year means new goals. If you are working in the retail industry, you are fully aware that return fraud is a painful and expensive problem. After having spent several years running our own dress shop in Copenhagen, we have made fighting return fraud our main goal for 2020. Our co-founder Aliana Pedersen communicated how during an interview with Foreningen for Dansk Internethandel (FDIH), when she explained how our label can prevent consumers from purchasing and using a product before returning it for a full refund:

When customers deliberately are planning to buy an item for the purpose of using it before sending it back for a full refund, they will most likely choose another place to buy from when they realize that the company has sealed their goods.

Aliana Pedersen, Co-Founder of zafarilabel

We are not the only ones advocating for a change in the retail industry. In the same interview, Niels Ralund, CEO of FDIH, shed light on how the label will help online stores’ to prove whether an item has been used or not:

We know that consumers that “loan” products are a major problem for clothing stores in particular, and that is why the label is a positive measure in the fight against serial returns. I think we will see an increased usage in online stores, especially in the clothing industry.

Niels Ralund, CEO of FDIH

So, to answer the aforementioned question of whether a label can solve one of the major challenges that online stores face; our answer is yes. We do this by providing you, representatives of current and future online stores, with a tool to fight return fraud and high return rates. That tool is our patented security label.

Link to the article (in Danish): https://www.fdih.dk/nyheder/2020/januar/klistermaerke-til-undsaetning-netbutikker-far-nyt-vaerktoj-i-kampen-mod-laneforbrugere