Organized retail is a booming sector and it’s quite obvious with it’s rapid growth problems are also there. One of the major problem, today mostly retailers are facing is Deshopping- The time when customer is not right- In other words, “the act of purchasing a product and than return it after they have fulfilled the purpose of the customer”
- Example- purchasing a suit for interview and than return it or ask for refund/credit note/exchange after fulfilling the purpose.
Deshopping is a time when customer service is not a service failure. Deshopping is an unethical consumer buying behaviour. Deshopping is an unpleasant fact of retailer. Liberal return policy is one of the major reason which increased growth in returned goods.
Retailer need to minimize the same because
- It increasing additional cost for companies.
- Reverse logistics
- Product loss
According to the survey carried out among 111 retailers in the US, the estimated loss caused by return fraud increased from $9.59 billion to $13.95 billion
Some companies changed their return policies to be more conservative in reaction to the growing tendency of return fraud (Spencer, 2002; Bhatia, 2004).
Deshopping is a major problem in this era. This problem is becoming uncontrollable because of the lack of the control from retailers over the Deshopping in terms of prevention.
The major factor is that the organization is conducting and focusing in customer service orientation. In the other hand, brand image and monetary cost to retailers are also cause the problem of Deshopping .
Retailer needs to think about their Liberal Return policy, employees training and staffing consideration as these three parameters playing an important role to minimize the Deshopping behaviour.