Transforming Retail: Narvar's Innovative Shield for Returns

By Kelly Martin Updated Mar 25, 2025 Category News Read 5 min

Revolutionizing Returns Management with AI

Enhancing customer loyalty and profit margins in retail

In the ever-evolving retail landscape, managing product returns effectively has become an urgent necessity for businesses. Recent studies indicate that returns are projected to surpass $1 trillion, marking a significant hurdle for retailers aiming to maintain their profitability. Addressing this issue, Narvar has launched Shield, an advanced AI-powered returns management solution, designed to help retailers streamline operations while minimizing loss due to fraudulent returns.

The Challenge of Returns in Retail

Returns can pose severe threats to the bottom line, leading to increased operational costs and reduced profit margins. For retailers, it's crucial to navigate these challenges efficiently:

Return fraud has surged, with estimates suggesting that as much as 15% of returns may be fraudulent, costing the industry over $103 billion. This includes rampant abuses of refund policies and false claims concerning products.
The costs associated with handling returns are considerable, often consuming up to 65% of the original sale price.
Customer experience is paramount; research shows that nearly 96% of consumers consider smooth return processes essential for making repeat purchases.
Contact centers are often inundated with queries about refunds, which raises costs and can frustrate both customers and employees.

"The staggering reality is that retailers cannot afford to overlook returns as a $1 trillion challenge," states Anisa Kumar, CEO of Narvar. "With Shield, we aim to redefine the post-purchase experience by empowering retailers to proactively manage returns and identify fraud, all while enhancing customer satisfaction."

AI-Driven Fraud Prevention with Shield

At the heart of the Shield solution lies Narvar's proprietary artificial intelligence, IRIS™, which processes an impressive 42 billion customer interactions annually to detect fraudulent activities in real time. With this cutting-edge technology, retailers gain unprecedented command over the returns process, seamlessly integrating intelligent workflows for returns and exchanges with advanced fraud detection capabilities.

Shield provides retailers with tools to differentiate between trustworthy customers and potential fraudsters during return requests. This feature empowers businesses to offer personalized options for returns and exchanges, designed to foster loyalty among genuine customers. Retailers can now leverage consumer data to proactively counter fraudulent activities, enforce eligibility protocols, and provide automated exchange features through one cohesive platform.

The retail industry is currently facing a wave of costly return behaviors, including:

Empty box scams, where fraudsters attempt to return boxes filled with worthless items to claim refunds.
Cross-retailer fraud, wherein consumers exploit discounts by purchasing items from one store and returning them to another for a higher price refund.
Wardrobing, a practice in which customers wear items and subsequently return them after use.

With Shield, businesses can address these challenges before they impact profitability. By utilizing AI to flag suspicious patterns in behavior, retailers can enforce dynamic return policies that may include limited return windows or varied eligibility guidelines. Additionally, Shield allows for rewarding loyal customers with benefits such as instant refunds upon initial scanning, smooth exchanges, and flexible options for retaining items.

Delivering Tangible Business Benefits

By leveraging Shield, retailers can significantly improve their returns management process, effective fraud detection, and customer experience while boosting operational efficiency. Businesses that have adopted this innovative solution, including notable brands, are already witnessing a positive influence on their bottom lines, as they report:

18% enhanced revenue protection through better eligibility enforcement.
40% improved revenue retention attributed to efficient exchange processes.
40% reductions in reverse logistics costs thanks to innovative solutions like Return Concierge.
50% decrease in call center operational expenses.

Establishing Consumer Trust through Shipping Protection

Alongside return management, retailers are grappling with challenges related to lost or damaged deliveries. With millions of packages disappearing yearly, it’s crucial to implement solutions that enhance consumer trust. Narvar has introduced Shipping Protection in collaboration with InsureShield® Shipping Insurance, allowing consumers the option to protect their packages at checkout. This service provides peace of mind for customers, ensuring their purchases are safeguarded, while also lessening the burden of risk on retailers.

If any shipping issues arise, customers can easily file and manage claims through a user-friendly self-service portal, leading to fewer support inquiries and improved margin protection for retailers, alongside a streamlined checkout experience that may increase conversion rates.

Narvar's Commitment to Innovative Solutions

Narvar Shield is now accessible for retailers in various regions, while Shipping Protection is available specifically to U.S. retailers. By visiting the Narvar site, retailers can learn more about these transformative offerings.

About Narvar

Narvar stands as the leading platform for intelligent customer engagement, empowering over 1,500 renowned brands such as Sephora and Levi's. With a mission to enhance the post-purchase experience, Narvar utilizes billions of data points to transmit personalized insights that foster consumer trust, protect operations, and drive sustainable growth. From managing returns and exchanges to streamlined tracking and notification systems, Narvar helps redefine the standards in the retail experience through its innovative solutions.

Frequently Asked Questions

What is Narvar Shield?

Narvar Shield is an AI-powered returns management and fraud prevention solution aimed at helping retailers manage returns effectively while protecting profit margins.

How does Shield prevent return fraud?

Shield utilizes proprietary AI technology to identify fraudulent behaviors in real time, helping retailers distinguish between genuine customers and fraudsters.

What business impacts have retailers experienced with Shield?

Early adopters report significant impacts, including increased revenue retention through exchanges and substantial reductions in return-related costs.