These systems leverage machine learning and deep-dive data analysis, and — depending on its findings — transactions might be flagged for further review, outright rejected, or seamlessly approved, ensuring an overall smooth purchase experience paired with robust security.

The rise of online marketplaces has inadvertently fueled the practice of “e-fencing,” a modern twist on a timeless criminal tradition: The reselling of stolen goods. Platforms like eBay and Amazon can offer a degree of anonymity that is particularly attractive to these kinds of scammers.

Brick-and-mortar stores, with their bustling aisles and often expansive store floors, can still draw a considerable amount of foot traffic, even in the increasingly digital world. (And there’s nothing wrong with that!)

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This jump isn't limited to just one type of crime. For example, data breaches can expose sensitive customer information, from credit card details and other forms of personal identification. Phishing attacks are another common way for scammers to infiltrate your business and bypass security systems for illicit gain.

Smart shelves, equipped with weight sensors that instantly detect item removals, can assist in both theft prevention and your staff’s restocking efforts. Electronic surveillance tags — which can set off an alarm if an unpurchased product leaves the store — are also a tried and true method of deterrence.

Of course, the bedrock of any successful loss prevention strategy is a clear, comprehensive security policy. These guidelines, in conjunction with consistent enforcement, signal to both customers and employees alike that your business takes loss prevention seriously.

To navigate these challenges, it’s essential to adopt standardized processes and streamline data management, often with tools like automated data entry systems or product information management (PIM) solutions.

Minimizing retail loss is only one part of a successful ecommerce strategy. Check our toolkit for expert insights on elevating your online retail game this upcoming season.

What are 5 methods ofloss prevention

Artificial intelligence (AI) can do a lot more than simply improve your customer’s shopping experience: It acts diligently — and in real-time — to identify suspicious purchases and other questionable patterns before they snowball into full-blown disasters.

Ultimately, the power of inventory control lies in its dual role as both a preventive measure against theft and a diagnostic tool for identifying losses.

But every shelf, aisle, and interaction in these spaces calls for not only a careful eye but also a strategic, coordinated approach to loss prevention. Here are a few best practices to consider that will not only protect your employees but your bottom line.

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Luckily, with a proactive approach, many businesses can greatly reduce retail loss year over year — and hopefully pass those savings onto their customers.

Moreover, by routinely analyzing inventory data, patterns of shrinkage may emerge. For example, recognizing that a specific product is frequently missing can suggest that it may be time to implement some enhanced security measures for that item.

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Some brands have even embraced advanced techniques like packaging their products with radio-frequency identification (RFID) tracking tags, which can easily track and identify stolen goods.

Once in place, providing regular training on your loss prevention policies will help to clarify expectations and offer some flexibility when adapting to new or emerging threats. This should help drive a culture of accountability and vigilance at your stores — at least if done effectively.

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While these inaccuracies often stem from innocent data entry errors or outdated information, the repercussions can be serious. Beyond lost sales alone, brands might face issues like alienating potential customers and can also complicate efforts to identify when “the numbers are off.”

Meanwhile, increasingly sophisticated point-of-sale (POS) systems now include tools like comprehensive data collection — many of which are capable of identifying patterns that might hint at theft or fraud.

While it’s not great to think about needing to protect your assets from bad actors, for better or worse, it’s both a fact of life and, oftentimes, simply the cost of doing business. Try not to take it too personally.

In fact, Organized retail crime (ORC) incidents were found to increase by as much as 26.5% year over year, according to research from the National Retail Federation (NRF).

Indeed, the mere knowledge of careful inventory oversight, in and of itself, can often deter potential thieves — when both staff and customers are aware that items are closely monitored, opportunistic theft is no longer quite so easy.

Retailers need to be proactive in collaborating with these platforms to quickly flag suspicious listings. In more severe cases, legal action may need to be pursued against persistent e-fencers. Educating consumers about the risks of unverified online sellers can also go a long way in deterring such purchases.

It’s imperative for brands to adopt strategies that not only cater to the convenience of online shopping but also address the unique challenges it presents in terms of loss prevention.

Now, magnify that frustration by about $94.5 billion. That is, staggeringly enough, the amount global retailers lost to shrinkage in 2021 alone.

That $94.5 billion figure didn’t come from little kids swiping candy bars — most of it, by far, is driven by organized criminal enterprises who are well-adjusted at identifying flaws in your brand’s security and inventory controls.

There are the traditional kinds of scams often associated with retail loss — shoplifting, burglary, robbery — but others can be more insidious. Scams like fraudulent returns, where the customer either retrieves an item off the shelves to “return” it before paying or simply swapping a good product for a broken one, are another clever way that many bad actors can take advantage of your business’s good nature.

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A recent Shopify study found that 56.8% of marketers saw an increase in cybercrime attacks from 2020 to 2021 — and as scammers grow more sophisticated, so too should the brands they’re preying upon.

These numbers aren’t just statistics — they should be serious wake-up calls for any business. As retailers in both online and in-store spaces gear up for back-to-school and holiday sales, the importance of maintaining rigorous loss-prevention strategies — across your business — is nearly impossible to overstate.

We all know ecommerce has revolutionized the way we buy and sell. But just like physical storefronts, this world of virtual carts and instant checkouts also comes with its own set of vulnerabilities.

If you’re like most people, losing your phone can be the final straw that turns a difficult week into a straight-up disaster. Heck, even the sting of losing a sock in the laundry can upend an otherwise good morning.

This post will examine some of the biggest threats to your business when it comes to retail loss, as well as some straightforward best practices brands can adopt to minimize them.

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Chris Caesar (he/him) is a professional writer with two decades of experience working with national publications, as well as top software-as-a-service (SaaS) and technology brands. He is passionate about crafting high-quality, lead-generating content that drives awareness and action.

Rigorous inventory control isn't just about keeping your customers’ favorite products in stock. With real-time monitoring, retailers can swiftly pinpoint all kinds of discrepancies, whether from theft, administrative errors, or any other challenges that might arise.

Groups can engage in activities like cargo theft, credit card fraud, and some innovative new approaches, like altering gift cards for resale or making fraudulent purchases. These thieves also frequently target elderly customers or unsuspecting employees with phishing attempts, both to steal money and find new angles of attack against your business.

Beyond the obvious financial downsides, unprofessional or unreliable resellers can also easily cause all kinds of reputational damage to your brand, even with once-devoted customers.

This piece has already dug into how data collection can go a long way in helping to identify patterns of unexplained retail loss. Of course, those numbers won’t do any good if they’re not accurately reflecting the state of your business.

To clarify: While ORC can certainly engage in any of these practices, it’s the scale that sets ORC apart from mere “external theft.” Relatively small as these losses may be, they’ll still chip away at your company’s bottom line — and can quickly add up if brands aren’t vigilant.

CCTV systems, for instance, have become more than just after-the-fact surveillance tools. With features like motion detection and facial recognition, these networks can not only gather crucial evidence during incidents but also help identify past offenders and deter illicit acts before they occur.

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Accredited Security™ is a Division of Accredited Financial Services, a Nevada Corporation. Accredited Financial Services has been a Member of the Southern Nevada Better Business Bureau since 2006. Accredited Security does not offer a warranty* on TASER CEWs through Axon, nor is warranty* on a purchased and refurbished*** TASER CEW offered or honored by Axon. TASER® is a registered trademark of Axon Enterprise, Inc. Accredited Security is not affiliated with Axon, and Axon does not sponsor or endorse Accredited Security or any of its products or services. Any use of the TASER® mark is for identification purposes only. *Axon does not offer or honor any warranty* on used TASER® energy weapons purchased through Accredited Security. **Axon has discontinued the X26 energy weapon and does not offer a firmware update beyond 2014. ***An energy weapon's internal electronics are sonically sealed by the manufacturer and cannot be refurbished***. Because these components wear out over time, which may increase the risk of failure in the field, Axon does not recommend use beyond their 5-year useful life. Accredited Security™ and Accredited Sales™ are Trademarks of Accredited Financial Services, LLC.

As these incidents are very much on the rise, addressing these emerging threats should be a top priority for any loss prevention strategy.

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Retail loss can occur in all kinds of situations: everything from legitimate accidents and minor acts of shoplifting to more coordinated, targeted, and sophisticated operations. Taking time to understand the various factors driving your brand’s shrinkage is the first step in empowering yourself to prevent it.

“Traditional” as they may be, brick-and-mortar spaces can still reap many of the benefits associated with the digital age — especially when it comes to loss prevention.