In this episode, Vito Petruzzelli sits down with Pedro Sanzovo, Sr. Director of New Products at Signifyd, to dive deep into the rapidly evolving world of ecommerce returns.
Pedro, who brings a diverse background in fraud prevention and analytics, frames returns as a crucial moment where consumer trust is tested and loyalty can be won. However, he also highlights how this customer-centric approach has unintentionally created new vulnerabilities, as fraudsters and abusers exploit increasingly lenient return policies designed to delight legitimate shoppers.
The conversation explores the dramatic shift from brick-and-mortar to online return experiences. Pedro and Vito discuss logistical challenges unique to ecommerce, such as higher costs, lack of in-person exchanges, and the complexities of offering instant refunds—a trend that, while aimed at recapturing customer goodwill, can be easily manipulated by bad actors. Pedro provides several real-world examples of returns fraud, from the infamous “rock in the box” scam to advanced tactics like label manipulation, stressing that many merchants still lack visibility into how much fraud and profit erosion occur due to poor data integration and process controls.
Pedro outlines a four-step path to returns management maturity, starting with gaining visibility over returns data, controlling obvious fraud, addressing grey-area abuse, and finally, optimizing processes to tackle excessive returns driven by business inefficiencies. The episode concludes with a discussion on the personal and professional growth opportunities in this complex, cross-functional space—ideal for problem solvers who thrive on both analytical work and broad collaboration. Pedro’s passion for the field underscores the exciting potential for companies and individuals willing to tackle the challenges of modern returns.
Chapters:
00:00 Ecommerce Returns and Fraud Challenges
03:48 Reevaluating Ecommerce Return Costs
08:56 Vito's Creative Fraud Strategies
11:55 Overcoming Refund Fraud Challenges
16:02 Reducing Returns Through Consumer Insights
19:31 Challenges in Ecommerce Returns Process
20:36 Embracing Passion in Problem Solving