Retailers Turn to AI to Revamp Reverse Logistics Strategies Amid Elevated Return Rates and Fraud Tactics

Retailers are rethinking their reverse logistics strategies due to elevated return rates, compressed margins, and sophisticated fraud tactics. They are turning to AI to optimize the returns lifecycle, focusing on fraud detection, predictive return forecasting, and autonomous decision support. Retailers like Target are using algorithmic decision-making to evaluate returned items and determine the best downstream path, improving efficiency and reducing labor costs.