Refunds management using Blockchain technology will simplify an old and paper based process, which we all use daily. Receipts are often issued on paper and there is often to connection made between the purchaser and the product (apart from high value items). This means that come refund time, there is often issue around eligibility for the refund and the proof of ownership of the person trying to receive a refund.
I have been in the retail industry long enough to see 1) the vast cost of refund and 2) the fraud related refunds
Whilst this section is on refunds, it is worth noting that the implementation of Blockchain technology to track the returns process will be of great benefit to retailers, where online retailers see return rates of up to 40% – a massive cost to the business and a big issue to tackle in the future.
“Blockchain will not only assist retailers move into accepting crypto-currency payments but the digital records created will also help streamline the returns and refunds process.
In-store purchases could be assigned digital receipts, which will not only give customers and retailers a simpler way of dealing with returns and refunds, but could also help the industry become paperless. Customers can also get a better overview of their spending habits with all receipts in one place.
Implementing a Blockchain solution into refund management will allow for complete transparency, which would ensure the eligibility of the refund.
Paperless receipts mean you can collect email address and contacts.”
Refunds management benefits and outcomes
“Fraudulent transactions and returns cost retailers between $9.1 billion and $15.9 billion annually
With so many transactions and a complex supply chain, deciphering which returns are fraudulent is becoming increasingly more difficult.
Returns equate to approximately $260.5 billion in lost sales for U.S. retailers, according to the National Retail Federation.”