Bracketing, a common shopping behavior, isn’t inherently harmful. In fact, it’s a natural result of eager shoppers seeking the perfect product, made easier by today’s convenient return policies. However, this convenience can also lead to careless shopping habits that ultimately hurt your business. It can also be exploited by scammers as a return fraud scheme. In this article, we’ll define bracketing, highlight how fraudsters use this tactic, and share ways you can prevent fraud.
What is Bracketing?
Bracketing is a common shopping practice where a consumer purchases multiple versions of an item, such as different sizes or colors, with the intention of keeping only one and returning the rest. This behavior allows shoppers to compare and choose the best option, but can also lead to increased returns and costs for retailers.
When Bracketing Becomes Fraudulent and How It Happens
Bracketing crosses the line into fraud when shoppers exploit this practice with no intention of keeping any of the items. In these cases, shoppers may use fake identities, stolen credit cards, or other deceitful tactics to acquire multiple versions of an item, returning them for refunds or store credit.
Fraudulent bracketing can also involve reselling items online or to second-hand stores, profiting from the retailer’s losses. This illegal behavior affects retailers and their honest customers, as it can lead to increased prices, reduced inventory, and stricter return policies.
How to Prevent It
Preventing this type of fraud or policy abuse requires a combination of strict return policies, employee training, and fraud detection tools. Here are some ways to prevent bracketing:
- Implement strict return policies and inspection processes
- Train employees to recognize and flag suspicious behavior
- Use fraud detection tools to identify patterns of suspicious behavior
- Limit the number of returns per customer
- Collaborate with other retailers to share information and prevent fraud
Frequently Asked Questions
Is bracketing considered return fraud?
Not by itself. Buying multiple sizes or colors with the intent to return most of them is legitimate shopping behavior, which is what makes it tricky. It crosses into abuse when it becomes systematic exploitation of free returns, and it often travels with genuine fraud like wardrobing on the items kept longest.
Why is bracketing so expensive for retailers?
Every bracketed order generates return shipping, inspection and restocking labor, and inventory that may come back unsellable at full price, all against a single kept item’s margin. Multiply that across a customer base trained by free returns and the cost rivals outright fraud, without any bad actor to block.
How can retailers reduce bracketing without punishing good customers?
Attack the root cause first: better size guides, fit tools, and honest product photography shrink the need to bracket. Then differentiate by behavior, offering keep-it incentives or exchanges to habitual bracketers rather than tightening the return policy for everyone. Blanket restrictions cost conversions that precision would have kept.
