How birddogs decreased fraudulent returns by 94%

Key Results

94% reduction in fraudulent returns: helping birddogs retain $60,000+ monthly.

$207K in Gross Merchandise Value (GMV) savings: improving overall profitability.

Comprehensive returns visibility: ensuring early fraud detection and fine tuning of returns policy.

Integrations

RMA: Loop Returns

3PL: Rock Returns

About birddogs

birddogs is a rapidly growing men's apparel brand known for their shorts and pants with built-in liners that offer comfort and functionality. They leverage an omnichannel distribution strategy – selling wholesale, direct to consumer, and via their brick and mortar presence.

The Challenge

Returns fraud cost birddogs tens of thousands of dollars

Like many e-commerce brands with customer-friendly return policies, birddogs has faced a surge in returns fraud. As online shopping continues to grow, retail companies are grappling with the challenge of balancing seamless customer experiences with effective fraud prevention.

birddogs’ return policy issued refunds as soon as the returns were scanned by a carrier, a common practice designed to enhance customer satisfaction. However, bad actors exploited the system with tactics like sending empty box returns, fake return labels, and other schemes, leading to substantial financial losses.

"We typically looked at returns on a macro level, but when Rock Returns flagged an issue, we dug deeper and found customers abusing our system to the tune of tens of thousands of dollars."   –Aaron Esmailian, Head of Growth at birddogs

The Solution

Eliminate returns fraud with Two Boxes

Keen to mitigate returns fraud, birddogs partnered with Rock Returns to deploy Two Boxes – the impact was immediate.

Issue refunds after inspection to protect against fraud

By integrating Two Boxes with their RMA provider (Loop), birddogs shifted from issuing refunds upon carrier scan, to a more secure process, issuing refunds after item inspection. This ensured that each item was physically received and met return criteria before a refund was processed – mitigating the impact of fraudulent returns and making it difficult for fraudsters to exploit their return policy.  

"Once we made the change to inspect returns before issuing refunds, it became almost impossible for scammers to game the system."

Leverage real time analytics and return disposition data to identify bad actors

Two Boxes provided birddogs with advanced fraud detection insights by integrating real-time return inspection data with Loop. Through a complete picture of the return journey, birddogs could analyze return history, purchase behavior, and refund claims to identify irregular patterns – frequent high-value returns, empty box scans, and manipulated shipping labels. Two Boxes made this easy by automatically flagging suspicious activity and alerting birddogs’ customer service team to potential bad actors. 

"They basically let us know, ‘Hey, these are the customers who are taking advantage of your return process.’ You might want to look into them, see which ones seem fraudulent, and go from there. Once we got that implemented, it became a no-brainer to change our return processing window."​

Deeply integrate the returns stack to ensure maximum visibility

birddogs partnered with their 3PL, Rock Returns, to launch Two Boxes. The implementation required minimal effort and allowed for a smooth transition due to Two Boxes and Rock Returns’ partnership. During onboarding, Two Boxes seamlessly integrated with Loop, allowing for efficient data synchronization and real-time visibility into return activities from RMA to restock. 

Once integrated, birddogs quickly updated their refund processing event from ‘refund upon scan’ to ‘refund after inspection,’ significantly enhancing fraud protection. To ensure ongoing success, birddogs receives weekly fraud prevention reports from Two Boxes, allowing their team to stay ahead of bad actors and protect their bottom line.

“We told Two Boxes what we needed, and they acted incredibly fast. Within days, our return process was far more secure.” 

“The fraud problem was bigger than we realized. Two Boxes helped us capture revenue that we were unknowingly losing every month,” Aaron noted. “As a growing brand, we can’t afford to let fraudsters take advantage of us. Two Boxes has been an invaluable partner in making sure that doesn’t happen.”

With Two Boxes, Aaron’s team turned a major challenge into an opportunity. With a data-driven approach to returns, birddogs can continue to grow while ensuring a great experience for their best customers.

Don't let returns fraud drain your profits!

Learn how Two Boxes can detect bad actors and protect your business. Book a demo today!