Stop return fraud (without losing loyal shoppers)

Time to get creative. From subleasing space to hosting comedy shows, we examine how some small retailers are coping with economic uncertainty. We also spotlight a D.C.-area entrepreneur using her embroidery kit business to create community and share what she’s learned about starting small. Plus, we explore ways to reduce returns and how kiosks can enhance your business.

But first, check out this explainer on why everything at the airport, from chocolate bars to magazines, is so expensive.

Re-envisioning retail: See what this mall looks like with its anchors replaced by apartments.

Sports in the city: Dick’s Sporting Goods brings House of Sport concept to NYC.

Bear market: How Build-A-Bear beats earnings expectations year after year.

Profit and loss: Why a small business owner cut profit-sharing and the employees' reactions.

Sharing is caring? Community area fees and why you should be careful before signing a lease.

Creative ways small businesses are dealing with economic uncertainty

A recent survey from Alignable found that 44% of the 4,000 entrepreneurs polled reported declining revenues and 20% say they feared going out of business if high tariffs persisted. Some small business owners are finding ways to navigate challenges by being creative. Some are subleasing their retail spaces, while others are hosting comedy shows, children’s camps or parents’ nights out. Others are turning to crowdsourcing in the absence of government grants and bank loans, or launching businesses to fill market gaps. One mom created a subscription box service to expose kids to other cultures around the world in response to federal cuts of diversity initiatives in public schools.

Why this matters: Across industries, survival hinges on raising prices strategically: enough to cover costs without losing customers. It also means experimenting with new ideas to keep customers engaged and, ideally, build a revenue cushion for the months ahead. (Money)

One stitch at a time: small business owner uses embroidery to build community

Capital Stitch Co. owner Meredith Artyukhina has turned her passion for embroidery into a full-blown business, one that she uses to champion mental health, LGBTQ+ rights, and build community. “I feel like in the last couple of years, crafts have had this resurgence because people are realizing that if I’m working with my hands, I’m not doom-scrolling on my phone,” she says.

In addition to patterns commemorating Washington, D.C., one of her recent designs honored Pride month. “We are a women-owned, trans-owned, disabled-owned business. These issues are intertwined with every aspect of our lives.” Whether she’s hosting a class or meeting up with fellow hobbyists, building community is key. “I want our vibe to be inviting... that you can have zero dollars and zero cents and still find an event that you can come and hang out with other people at.”

Why this matters: Artyukhina underscored that starting small is the key to any successful business launch. “We started Capital Stitch Co. with $400 and free platform software,” she says. “I think a lot of people have a grand vision for a small business, and they need to start with one product that they know they’re going to sell, and they’re going to sell really well.” (WTOP)

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How to cut down on return fraud without losing customers  

Product returns are inevitable, and while some are legit, when return fraud occurs, things can get costly and complicated. According to an Appriss Retail and Deloitte study, fraud accounted for $103B in losses in 2024. In this "Retail Remix" episode, Adam Blair, editor of "Retail TouchPoints," chats with Vishal Patel and Pedro Ramos of Appriss Retail to examine how retailers can cut down on fake returns without sacrificing customer experience.  Rigid return policies, whether in person or online, can backfire because professional fraudsters have ways to circumvent them. Ramos instead recommends a single authorization engine that touches all channels on a consumer-by-consumer basis and tailors the policy based on a shopper’s total value profile. This has been found to lead to more purchases and a reduction of fraud.

"A rule is a rule... but imagine you are a retailer and your very best shopper is standing in front of you on Day 32 trying to make a return on a 30-day return policy. Would you not want to go ahead and still accept that return?... In data, we are connecting a lot of transactions to identify a 360-degree view of the shoppers and use that to create the most positive experience."-Vishal Patel, Chief Product and Technology Officer, Appriss Retail

Why this matters: Every time a retailer accepts a return, they are buying back their used inventory. That lowers topline and net sales, and has a massive impact on margins and carrying costs. When bad actors come into the picture, it doubles the impact on the bottom line. Solutions to stop fraud enable retailers to retain their dollars and the inventory they have worked hard to procure. (Retail Touchpoints)

High-touch retail: How kiosks can transform your business and which metrics matter

Self-service kiosks used to be a novelty, but this high-touch (literally) technology has since become essential in retail and hospitality, streamlining operations and boosting customer experience by freeing up staff. Instead of being tied to a cash register, an associate can be on the floor, offering personalized product recommendations, troubleshooting issues and providing the kind of genuine, human interaction that builds customer loyalty. "Good design borrows from the cues of human interaction: clear instructions act like a friendly greeting, intuitive navigation works like a helpful guide pointing you in the right direction, and timely feedback mirrors the nod or confirmation you'd expect from a person,” says Filippo Fiori, cofounder and CEO of Due’ Cucina Italiana.

Why this matters: While it's easy to track the number of orders or sales, the kiosk experience is unique and requires a different approach to measurement than mobile or web interactions. KPIs to monitor include user segmentation and A/B testing, task completion rate, error and abandonment rate, customer feedback and surveys and repeat usage rates. (Retail Customer Experience)

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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto.