Signifyd launches Intelligent Returns to help UK retailers curb costly returns

Signifyd has introduced Intelligent Returns, a two-part solution aimed at assisting retailers in the UK and Europe with managing costs and complexity related to customer returns.

The suite is designed to address rising return volumes, particularly during peak shopping periods such as Black Friday and Christmas, when retailers typically see returns increase by between 70 and 145 percent. Both Instant Refunds and Returns Insights are now available for retailers handling digitally initiated returns of physical goods, subject to relevant laws and eligibility requirements.

Shopper expectations

Recent research by Signifyd involving thousands of consumers across the UK, Spain, Italy, and France indicates that return policies are a significant deciding factor for online purchases. The results demonstrate that 77 percent of respondents believe return policies strongly influence where they shop, and 94 percent cite ease of returns as essential.

Retailers must also navigate the strict consumer rights legislation in both the UK and EU, which leaves them with limited flexibility to adjust their policies. This is compounded by consumer expectations: less than half say they would shop with a retailer that only offers store credit or imposes return fees.

Addressing abuse and protecting margins

Intelligent Returns seeks to balance the challenge of customer satisfaction and controlling costs. The Instant Refunds component offers real-time risk intelligence to enable smarter refunding decisions. Retailers receive advisory notifications at crucial moments during the return process, such as when a label is created or a return is scanned by a carrier. This system allows trusted customers to receive immediate refunds while higher-risk transactions are flagged for further review.

Returns Insights provides a broader analysis of return data, highlighting trends such as policy abuse, potential fraud, product-level issues, and any links between frequent returns and chargebacks. This enables retailers to make more informed decisions at every stage of the return journey.

"Retailers are being asked to deliver better service with tighter resources. We are now seeing some of the biggest brands take drastic steps to control returns abuse, including account closures and stricter policies. Our solutions give retailers a smarter path forward, one that protects the business without punishing good customers," said Nikhita Hyett, General Manager at Signifyd. 

Instant Refunds and Returns Insights are underpinned by machine learning, real-time risk analytics, and data from a global merchant network to support these recommendations. According to Signifyd, data shows that customers who receive instant refunds are 23 percent more likely to make another purchase within 30 days, highlighting the business benefits of customer retention balanced with the control of returns abuse.

Market context

Returns management remains an ongoing challenge for the retail sector, especially during holiday peaks and sales events. With regulatory constraints and rising consumer expectations, technology is increasingly deployed to deliver more refined risk assessment and operational efficiencies.

Signifyd confirms both solutions are available and operational for eligible retailers, allowing businesses to address fraud, abuse, and margin pressures while aiming to preserve their customer relationships and brand loyalty.