Uncertain inventory levels and potential sales declines have retailers on edge; Appriss Retail unveils how managing returns fraud, retail loss, and shrink can strengthen profits
Appriss Retail, a leading provider of solutions designed to combat returns and claims fraud and reduce the impacts of total retail loss, is releasing expert-backed guidance to help retailers navigate the hazy economic landscape and strengthen their businesses.
“Where there’s uncertainty in the economy, retailers can focus on what they can control to safeguard profits, and retail loss and returns fraud are two areas where they can turn dollars lost into dollars gained.”
The fluctuations and shifts in global tariffs have impacted retailers big and small. The National Retail Federation (NRF) has forecasted retail businesses to grow by 2.7% in 2025, but with global tariffs in place, has said it’s very difficult to directly measure year-end sales.
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Amid the uncertainty, retailers face fears of out-of-stock products, ships and cargo stuck at sea, and a rise in retail crime due to the difficulty of securing goods. These challenges can impede profits. However, there are some internal practices that retailers can control to optimize cash flow and boost profitability. Appriss Retail suggests to:
- Get predictive across retail loss, finding patterns in transactions and behaviors. To be proactive in the fight against fraud, theft, and issues of retail loss, implement AI and data analytics into EBR (exception-based reporting), identifying patterns of retail loss where teams aren’t looking such as food waste, administrative errors, supplier fraud and markdowns, and more.
- Optimize returns, limiting fraud and waste. For every return, a company essentially buys back used inventory, and for every fraudulent return, a retailer buys shrink. Both instances impact net sales and cash flow. To limit these losses, retailers can leverage an AI returns authorization solution to flag suspicious behaviors, catch potential abuse, and protect their profits.
- Trust the technology, reduce a retailer’s “insult rate.” Consumer loyalty is always important; why risk it with bad return policies or systems? AI-based return authorization can stop bad actors, and deny their returns, while providing loyal shoppers a better returns experience. This lowers a retailer’s insult rate, or percentage of good consumers being denied legitimate returns. Appriss Retail typically recommends denial or warning in less than 2% of all returns with virtually no insults. Deliver the best experience to great consumers while using the best technology possible to reduce total return loss.
- Incentivize consumers, recovering revenue through loyalty. Retailers can turn returns into revenue by offering personalized incentives based on each shopper’s transaction history. For example, customers might receive exclusive rewards for choosing sustainable products or opting for in-store returns over shipping — encouraging behavior that increases top-line sales and drives profitability.
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“Where there’s uncertainty in the economy, retailers can focus on what they can control to safeguard profits, and retail loss and returns fraud are two areas where they can turn dollars lost into dollars gained,” said Michael Osborne, CEO of Appriss Retail. “When retailers feel helpless against macroeconomic trends, looking at internal processes such as where they can improve on shrink can be a way to support the business.”
Cash flow concerns are timely and valid, and retailers across sectors are feeling unnerved in the face of tariffs and inflation. To weather the storm, companies can look at internal processes to regain revenue. Appriss Retail’s solutions can help improve net sales and cash flow which helps retailers deal with uncertainty and deliver better overall results. By partnering with industry leaders such as Riskified and Optoro, Appriss Retail ensures retailers get full protection and visibility into end-to-end returns fraud and claims abuse, and wherever retail loss is occurring. Our retail customers typically see an 8-12% return reduction with virtually no impact on good consumers and their shopping behaviors.