What is BOGO abuse?

BOGO abuse is using a buy-one-get-one or tiered discount, then returning the full-price item and keeping the discounted or free one. If the refund doesn’t account for the deal, the customer ends up paying far less than the promotion intended.

It’s usually a loophole in how returns are calculated rather than fraud. Most of it is closed by refunding the price actually paid.

Who it hits

Apparel, beauty, footwear and any brand that runs BOGO, bundle or spend-more-save-more promotions.

What it costs

The gap between the full-price refund and what the customer actually paid, plus the cost of the return itself.

How to prevent it

• Refund the price paid after the promotion is allocated across the order.

• State in your promo terms how partial returns are refunded.

• Flag customers who repeatedly return the higher-priced item from promotions.

FAQ

Is BOGO abuse fraud?

Usually not. It exploits how refunds are calculated. Fixing the calculation removes most of it.

What’s the fairest way to refund a partial return?

Allocate the discount across all items in the deal and refund only the returned item’s share.