Return fraud is the business equivalent of getting punched in the face and then having to apologize for bleeding on someone’s fist. You ship a product, the customer uses it, wears it, breaks it, or just changes their mind, and then demands their money back like you’re running a free rental service. And because you’re terrified of a bad review, you eat the loss and smile through it.
Here’s the truth nobody wants to say out loud. A small percentage of your customers are professional thieves. They’re not confused. They’re not dissatisfied. They’re running a side hustle where your store is the mark. And if you don’t have a return policy designed to stop them, you’re funding their lifestyle.
The worst part? Most sellers know this is happening but don’t do anything about it because they think being “customer-friendly” means being a doormat. It doesn’t. It means protecting your business so the good customers don’t have to subsidize the scammers.
The Classic Moves You’ve Already Seen
You know the playbook. Someone orders an expensive item, uses it for a week or a month, then files a return claiming it’s “defective” or “not as described.” They send back a broken version, a cheaper knockoff, or nothing at all, and by the time you figure it out, the refund’s already gone through.
Or they do the empty box routine. Product arrives, they claim the box was empty, and suddenly you’re in a he-said-she-said with your payment processor who sides with the buyer because that’s always the path of least resistance.
Then there’s the serial returner. This person has returned 80 percent of everything they’ve ever bought, but the platforms don’t flag them because “the customer is always right,” even when the customer is clearly, objectively wrong.
And what do most sellers do? They refund, apologize, and hope it doesn’t happen again. Spoiler: it does.
Your Return Policy Is a Contract, Not a Suggestion
Here’s what separates amateurs from professionals. Amateurs write return policies to sound nice. Professionals write return policies to prevent theft. Your policy isn’t there to make people feel warm and fuzzy. It’s there to set boundaries that protect your business while still being fair to honest customers.
That means being specific. Real specific. Not “we accept returns within 30 days” but “we accept returns within 30 days on unused items in original packaging with all tags attached and proof of purchase.” See the difference? One invites abuse. The other makes it harder.
You also need consequences. “Returns without original packaging will incur a 20 percent restocking fee.” “Items returned worn, damaged, or altered are not eligible for refund.” “Return shipping is the customer’s responsibility unless the item was defective.” These aren’t mean. They’re necessary.
The second you make your policy vague or overly generous, you’ve just put a giant “kick me” sign on your business.
Restocking Fees Are Your Friend
Restocking fees get a bad rap because customers hate them, but customers also hate paying for things in general. That’s not your problem. A restocking fee does two things. It discourages frivolous returns, and it compensates you for the time, labor, and cost of processing a return that shouldn’t have happened in the first place.
Let’s say someone orders three dresses to try on at home like your store is their personal fitting room. Without a restocking fee, they’ll return two and you’ll eat the shipping both ways plus the labor of inspecting, repackaging, and relisting. With a restocking fee, suddenly they think twice before treating you like Nordstrom.
And yes, some customers will complain. Let them. The ones who complain the loudest are usually the ones you don’t want as repeat customers anyway. You’re not trying to win over serial returners. You’re trying to run a profitable business.
Require Photos Before Accepting Returns
This is the move that stops half the nonsense before it starts. When someone requests a return, make them send photos of the item and the packaging. Not after they ship it back. Before.
Why? Because the second you require proof, scammers either vanish or suddenly “find a way to make it work.” Amazing how many “defective” products get un-defective the moment someone has to document the problem.
For honest customers, this is a non-issue. They’ll send the photos, you’ll approve the return, and everyone moves on. For scammers, it’s a roadblock they’d rather not deal with, so they’ll go find an easier target.
And if they do send photos and the product clearly isn’t defective or isn’t even the same item? Congrats, you just saved yourself a refund and have documentation to back up your decision.
Track Serial Returners and Ban Them
You don’t owe infinite chances to people who are clearly abusing your policies. If someone has returned four out of five orders, they’re not unlucky. They’re a problem. And the solution is simple. Stop selling to them.
Most ecommerce platforms let you block customers. Use that feature. It’s not petty. It’s smart. You’re protecting your profit margins and your sanity. There are plenty of legitimate customers who will appreciate your products and won’t turn every transaction into a hassle.
And if you’re worried about looking “mean,” remember this. The time and money you waste dealing with serial returners is time and money you can’t spend on customers who actually value what you’re selling. You’re not running a charity. Act like it.
Here are Five Things You Can Do Right Now.
First, rewrite your return policy today. Make it specific, add restocking fees where appropriate, and include language about condition requirements. Don’t leave room for interpretation. Spell it out like you’re talking to someone who’s looking for loopholes, because some of them are.
Second, require photos before approving any return. Set up an email template that says, “Thanks for reaching out. To process your return, please send photos of the item and packaging showing the issue.” Then wait. You’ll be shocked how many requests disappear.
Third, add a return timeframe and stick to it. Thirty days is standard, but you can go shorter if your product category justifies it. Someone who waits 60 days to return something was never serious about keeping it in the first place.
Fourth, track your returners. Keep a spreadsheet or use your platform’s notes feature to flag customers with high return rates. After two or three returns, you’re allowed to say no to future orders. Protect your business before they bleed you dry.
Fifth, stop refunding out of fear. Not every complaint deserves a refund. If your policy clearly states the item must be unused and they send back something that’s clearly been worn, used, or damaged, deny the return. You’ll get pushback. Stand your ground anyway. The customers worth keeping will respect it.
Return fraud isn’t going away, but you don’t have to be an easy target. A clear, firm return policy protects you from scammers while still treating honest customers fairly. And if that pisses off a few people who were planning to rip you off? Good. That’s the point.
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