UPS’ Happy Returns is enhancing its reverse logistics capabilities to combat returns fraud, especially during the post-holiday rush. They are piloting two AI-driven features with select shippers, including apparel retailer Everlane. The first feature assesses the risk of returns based on shopper behavior, flagging high-risk items for review before issuing refunds. The second feature, Return Vision, uses AI to audit these flagged returns by comparing them to the retailer’s online catalog images, identifying discrepancies that might indicate fraudulent “decoy returns.” An estimated 9% of returns are fraudulent, prompting retailers to adopt such advanced techniques. Happy Returns ensures quick audits—completed within a day—to prevent warehouse clogs, achieving a legitimacy verification rate of nearly 100%. The company plans to scale Return Vision more broadly in 2026, leveraging machine learning for increased accuracy in identifying return fraud and reducing potential losses for retailers, which average $218 per flagged item.
Source link
Share
Read more