Return Fraud-5 WC Blog 393
Wardrobing-5
Online Clothing Rental Stores Are Not A Remedy To Return Fraud Caused By Wardrobing
For retailers clothing return fraud has been a problem for many years. Customers come in to find an outfit they like, purchase it and take it home. The customer removes or hides the tags and wears the garments out to an event or just to be seen in public. Often this is to impress their friends and give the appearance that they are purchasing new clothes on a regular basis. After they wear the clothes once or twice the purchaser puts the clothing tags back on the merchandise or if they had taped them up they allow the tags to hang loose again. The clothes are then returned to the store and the customer has the original receipt and seeks a full refund. This type of return fraud is known as wardrobing.
You may be wondering why a store would allow wardrobing to take place. Perhaps you own a small retail clothing shop yourself and can’t understand how someone could let this happen. It may surprise you but if you have been selling clothes for any length of time you have probably been the victim of a clothing return scam and didn’t realize it. Office supply stores and even online sites provide easy access to the purchase of ticketing guns that use the plastic hangers that hold manufacturer hang tags on clothing. It isn’t difficult to take off and replace tags in this fashion. The other trick is simply to tuck a tag up the sleeve of a shirt or jacket or down the neck and tape it against the material to avoid it falling out and being seen by others. Aside from possible stains or odors, when the tags are in place again it can be very hard to know the clothing had been worn. I have often joked that it would be better if stores just rented clothes and it wouldn’t matter if people wore the garments and returned them.
I bring this all up because the other day I saw a commercial for an online retailer that rents clothes out. For a moment I thought that it sounded like a good idea. Then I looked into a couple of similar websites that advertised services that closely resembled the advertisement I had watched on television. I did a little digging and found that what it looks like these retailers do is have customers sign up for subscriptions and then pay a monthly fee or they charge for an item to be rented and an additional charge if it is not returned on time. Some websites even give an option to rent the item for one price or purchase it outright for another price. While this does sound good and could provide opportunities for a person to wear a rented wardrobe I am not convinced it will do any good in preventing wardrobing among the swindlers who engage in the activity.
Here is what I am saying, if someone wardrobes, the perpetrator does not want to pay anything for the clothing they are purchasing. Their mindset is to appear to be buying the clothes and then return them for a full refund. The act of wardrobing is to avoid paying anything at all for the clothing. Therefore, renting clothes online or purchasing a subscription is not going to appeal to people who commit return fraud.
I did find it interesting that at least one of the clothing rental companies I looked up appears to use wardrobing tags on their merchandise. In their FAQ section they remind a client not to remove the “security tag” until they have tried on the merchandise to ensure it fits. If it is removed the client is charged the rental fee when it is returned. This sounds much like Alpha Shark Tags which are one- time use tags that are to be cut off by a customer, not the store. Once cut off it prevents the item from being able to be returned whether it is to a traditional brick and mortar store or an online retailer.
Return fraud is a drain on retailers. From the amount of time a salesperson spends helping the fraudster to the determination of what to do with the merchandise when it is returned. Is the garment serviceable? Are there stains or odors? Does it have to be cleaned or marked out of stock and destroyed? All of these things can cost the store more money. Don’t allow return fraud to hurt your profit line, use Alpha Shark Tags and don’t worry if you have or have not been a victim in the past, you won’t be again.
Need information on return fraud? Give us a call at 1.770.426.0547 now.
For retailers clothing return fraud has been a problem for many years. Customers come in to find an outfit they like, purchase it and take it home. The customer removes or hides the tags and wears the garments out to an event or just to be seen in public. Often this is to impress their friends and give the appearance that they are purchasing new clothes on a regular basis. After they wear the clothes once or twice the purchaser puts the clothing tags back on the merchandise or if they had taped them up they allow the tags to hang loose again. The clothes are then returned to the store and the customer has the original receipt and seeks a full refund. This type of return fraud is known as wardrobing.
You may be wondering why a store would allow wardrobing to take place. Perhaps you own a small retail clothing shop yourself and can’t understand how someone could let this happen. It may surprise you but if you have been selling clothes for any length of time you have probably been the victim of a clothing return scam and didn’t realize it. Office supply stores and even online sites provide easy access to the purchase of ticketing guns that use the plastic hangers that hold manufacturer hang tags on clothing. It isn’t difficult to take off and replace tags in this fashion. The other trick is simply to tuck a tag up the sleeve of a shirt or jacket or down the neck and tape it against the material to avoid it falling out and being seen by others. Aside from possible stains or odors, when the tags are in place again it can be very hard to know the clothing had been worn. I have often joked that it would be better if stores just rented clothes and it wouldn’t matter if people wore the garments and returned them.
I bring this all up because the other day I saw a commercial for an online retailer that rents clothes out. For a moment I thought that it sounded like a good idea. Then I looked into a couple of similar websites that advertised services that closely resembled the advertisement I had watched on television. I did a little digging and found that what it looks like these retailers do is have customers sign up for subscriptions and then pay a monthly fee or they charge for an item to be rented and an additional charge if it is not returned on time. Some websites even give an option to rent the item for one price or purchase it outright for another price. While this does sound good and could provide opportunities for a person to wear a rented wardrobe I am not convinced it will do any good in preventing wardrobing among the swindlers who engage in the activity.
Here is what I am saying, if someone wardrobes, the perpetrator does not want to pay anything for the clothing they are purchasing. Their mindset is to appear to be buying the clothes and then return them for a full refund. The act of wardrobing is to avoid paying anything at all for the clothing. Therefore, renting clothes online or purchasing a subscription is not going to appeal to people who commit return fraud.
I did find it interesting that at least one of the clothing rental companies I looked up appears to use wardrobing tags on their merchandise. In their FAQ section they remind a client not to remove the “security tag” until they have tried on the merchandise to ensure it fits. If it is removed the client is charged the rental fee when it is returned. This sounds much like Alpha Shark Tags which are one- time use tags that are to be cut off by a customer, not the store. Once cut off it prevents the item from being able to be returned whether it is to a traditional brick and mortar store or an online retailer.
Return fraud is a drain on retailers. From the amount of time a salesperson spends helping the fraudster to the determination of what to do with the merchandise when it is returned. Is the garment serviceable? Are there stains or odors? Does it have to be cleaned or marked out of stock and destroyed? All of these things can cost the store more money. Don’t allow return fraud to hurt your profit line, use Alpha Shark Tags and don’t worry if you have or have not been a victim in the past, you won’t be again.
Need information on return fraud? Give us a call at 1.770.426.0547 now.
