Beyond the Barcode: Comparing SKU and Digital Product Passport Verification for Return Fraud Detection in Omnichannel Fashion Retail
(2026) SMMP40 20261Department of Service Studies
- Abstract (Swedish)
- The growth of omnichannel retail has made product returns more convenient for customers, but it has also created new challenges for verifying whether a return is legitimate. In fashion retail, traditional Stock Keeping Unit (SKU) systems can confirm product-category information but cannot establish whether the item being returned is the exact item connected to the original transaction. This creates an important information gap in return decisions, particularly when fraudulent returns are supported by apparently credible documentation or product information.
This study examines whether item-level Digital Product Passport (DPP) verification can support more accurate return decisions than SKU-based verification and how the two verification... (More) - The growth of omnichannel retail has made product returns more convenient for customers, but it has also created new challenges for verifying whether a return is legitimate. In fashion retail, traditional Stock Keeping Unit (SKU) systems can confirm product-category information but cannot establish whether the item being returned is the exact item connected to the original transaction. This creates an important information gap in return decisions, particularly when fraudulent returns are supported by apparently credible documentation or product information.
This study examines whether item-level Digital Product Passport (DPP) verification can support more accurate return decisions than SKU-based verification and how the two verification regimes influence the information participants use when reaching those decisions. A controlled within-subjects experiment was conducted with 20 participants, who assessed the same set of simulated omnichannel fashion retail return scenarios under SKU and DPP verification. Decision accuracy and information-use behaviour were examined quantitatively, while written explanations provided supplementary insight into participants' reasoning.
The findings show that DPP verification was associated with higher overall decision accuracy, with the clearest advantage occurring in the identification of fraudulent returns. Item-level verification also changed the decision process. Participants noticed inconsistencies more frequently and gave greater importance to verification-system information. However, the advantage was not universal. A legitimate case involving an ambiguous DPP verification warning showed that making an inconsistency visible does not necessarily ensure that it will be interpreted correctly.
The study therefore suggests that the value of item-level verification lies not simply in providing more information, but in making relevant information more specific, visible, and usable. DPP-based verification offers promising support for return-fraud decision-making, but its effectiveness ultimately depends on clear system communication and appropriate human judgement. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/student-papers/record/9251048
- author
- Hasan, Md Nahid LU
- supervisor
-
- Klas Hjort LU
- organization
- course
- SMMP40 20261
- year
- 2026
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Digital Product Passport (DPP), SKU verification, Return fraud, Omnichannel fashion retail, Return decision-making.
- language
- English
- id
- 9251048
- date added to LUP
- 2026-09-15 13:15:02
- date last changed
- 2026-09-15 13:15:02
@misc{9251048,
abstract = {{The growth of omnichannel retail has made product returns more convenient for customers, but it has also created new challenges for verifying whether a return is legitimate. In fashion retail, traditional Stock Keeping Unit (SKU) systems can confirm product-category information but cannot establish whether the item being returned is the exact item connected to the original transaction. This creates an important information gap in return decisions, particularly when fraudulent returns are supported by apparently credible documentation or product information.
This study examines whether item-level Digital Product Passport (DPP) verification can support more accurate return decisions than SKU-based verification and how the two verification regimes influence the information participants use when reaching those decisions. A controlled within-subjects experiment was conducted with 20 participants, who assessed the same set of simulated omnichannel fashion retail return scenarios under SKU and DPP verification. Decision accuracy and information-use behaviour were examined quantitatively, while written explanations provided supplementary insight into participants' reasoning.
The findings show that DPP verification was associated with higher overall decision accuracy, with the clearest advantage occurring in the identification of fraudulent returns. Item-level verification also changed the decision process. Participants noticed inconsistencies more frequently and gave greater importance to verification-system information. However, the advantage was not universal. A legitimate case involving an ambiguous DPP verification warning showed that making an inconsistency visible does not necessarily ensure that it will be interpreted correctly.
The study therefore suggests that the value of item-level verification lies not simply in providing more information, but in making relevant information more specific, visible, and usable. DPP-based verification offers promising support for return-fraud decision-making, but its effectiveness ultimately depends on clear system communication and appropriate human judgement.}},
author = {{Hasan, Md Nahid}},
language = {{eng}},
note = {{Student Paper}},
title = {{Beyond the Barcode: Comparing SKU and Digital Product Passport Verification for Return Fraud Detection in Omnichannel Fashion Retail}},
year = {{2026}},
}