ALPHA SHARK TAGS ARE THE NEWEST, ADVANCED TECHNOLOGY TO STOP THE BILLIONS LOST IN RETURN FRAUD!

Retailers lose billions each year to fraudulent refunds. Stores keep their return policies flexible in order to be customer-friendly. This opens the door to return fraud, which drains profits right at the point of sale. Return fraud is far more common than most retailers initially think. It’s a double-edged sword for retailers. We broaden return policies to take care of customers while at the same time inadvertently inviting fraudulent refunders to cause high dollar shrink. 
       

As a Loss Prevention expert, I’ve seen several stores suffer return shrink. I once worked in a large store that completed $480,000 in no receipt returns in only a 1 year period. Out of the $480,000, they lost close to $192,000 in one year due to fraudulent returns. The store team knew their return percent for no receipt refunds was high, but had no clue the problem was this widespread. In that location, I prosecuted multiple high dollar cases each week. The majority of them pertained to shoplifters stealing merchandise, then returning that item at a later time. The thief will then receive a gift card or cash for your merchandise they stole. Another popular method is merchandise fraudulently being swapped for used merchandise that did not belong to the store. Subjects do this so they get a store refund, but also keep the actual item that they purchased. They will return one of their own used products, with your price tag attached to it. That way the cashier will scan the tag, thinking the returned item is the one the individual purchased. Now you are stuck with merchandise that is not yours, and they again receive a gift card or cash for the return. It’s called double dipping, causing a loss each time it happens. Another type of return fraud consists of “wardrobing“. Subjects will come into your store and return items that are already worn by them. Once you notice the items are worn, the subjects have the cash and you have to mark out the item that you cannot resell. Another big loss for your store. The numbers of return fraud cases I’ve prosecuted is at least equal to if not greater than the number of traditional shoplifting cases. Luckily, there is something new that retailers can do about it. Alpha Shark tags can be placed on your merchandise in order to prevent this type of fraud. They work as a strong, visual deterrent. They are small, and fit easily on your products. The tag cannot be placed back on the product after a customer removes the tag, which puts a stop to all of the types of fraudulent refunds. The item cannot be returned unless the security tag is in place, proving that the item is indeed the same item and not used by the customer. It does not get better than this!
       

There are multiple types of return fraud, so as retailers we have to think smarter when it comes to this type of fraud. Alpha Shark Tags are the newest, advanced technology to stop the billions lost in refunds. A lot of retailers I’ve worked for at first didn’t know what they could do to stop this rising trend. The stores would just accept their return percent and tell their associates to “be on the lookout” for fraudulent refunds. But what are you really doing to put a stop to it? Thieves know the ins and out of the system, so simply being on the lookout is not enough in this day and age. Investing in Alpha Shark Tags are the easiest way to stop the frustration of losing money daily due to fraudulent refunds. 

For more information about Return Fraud, contact us or call 1.770.426.0547.                                                        

Return Fraud And Wardrobing Will Wane When You Begin Using Alpha Shark Tags

Have you ever had to go to an event and needed to buy an outfit for that one evening? How about a holiday party that you want to look good for but you really didn’t want to have to splurge on a new dress or suit? Over the past couple of years I have had a couple of graduations to attend for my children and while I would have been happy wearing my slightly snug, 1987 light blue sports coat, my wife would not permit me to do so. She says it is out of date (I contend it is retro and I would be a trend setter). She also says I have put on a few pounds since then, so it is too tight. I believe the jacket does not need to be buttoned and besides, the jacket just shrank in the closet and only needs stretched out. The few extra pounds are strictly muscle, attributed to a strict diet of protein (ie; hamburgers from my favorite fast food protein take out restaurant). Regardless of our disagreement I did breakdown and purchase a new sports coat, tie, and shirt. Now I would point out, I rarely wear these items, I wear business casual at one of my jobs, and a company polo shirt and slacks to my second job. Even my church clothes are my business casual attire. In my mind I could have saved the money on the new duds, but apparently I would have embarrassed my family. The jacket and tie sit in my closet waiting for the next big event. There are some people however, that make purchases for a specific night out or event, wear the clothes and return them for a full refund. This is a form of return fraud known as wardrobing and is a financial drain on retailers.  A method to prevent this fraud is when a business uses Alpha Shark Tags on their garments.

When wardrobing takes place the “customer” is basically borrowing the merchandise for one or two activities and returning it. They are careful to conceal or remove clothing tags so they cannot be seen when the item(s) are worn but can be easily replaced or unhidden when they are ready to refund the purchase. The Alpha Shark Tags are brightly colored devices that are pinned to a location on an article of clothing where they can be seen if worn. Unlike retail anti-theft devices, the tags are removed at home by the buyer not at the point of sale. Once cut off, the tags cannot be replaced and the store can enforce a no-return policy. The tags do not interfere with the fit of a garment so there can be no excuse for removing the tag just to try on the merchandise. If the tag is intact and all manufacturer tags and receipts are present a retailer can give the appropriate refund for a return. 

As a former Loss Prevention Manager and Manager On Duty I have had to deal with wardrobing fraud and it is more prevalent than you may imagine. The merchandise is returned with the receipt and if a reason for the return is needed, usually the excuse is that the clothes just didn’t fit right. There were many times I was called by the return desk personnel to look at merchandise being returned and there would be a stain from make-up or perfume or cologne odors. I couldn’t turn down the refund because clothes frequently get make-up stains on them just from being tried on in the fitting room. Perfume, cologne and even body odor smells could also permeate clothing when tried on so it wasn’t enough reason to decline a refund. Make no mistake, the activity is return fraud because the person has no intent to keep the merchandise, they don’t even want to rent it their intent is to borrow and return. It isn’t a criminal act however, since there are no laws broken and store policies are being followed. Unfortunately there is a cost associated with return fraud. Frequently merchandise that has been used for wardrobing quite often has to be significantly reduced in price, causing loss of profit margin. In the worst cases the clothing has to be marked out of stock and destroyed, costing the store the full retail value of the item.

You don’t need to be victim of return fraud and you don’t have to lose customers due to overly burdensome return policies. Use Alpha Shark Tags on all articles of clothing and improve the bottom line for your store.

Alpha Shark Tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.      

Are Ineffective Return Policies Leaving Your Store Vulnerable To Return Fraud? Alpha Shark Tags Are The Answer To Your Problem

I was shocked when I recently read an article online in marketwatch.com stating that, “Returns account for an estimated 4.4% of $14.5 trillion in global retail sales, IHL said.” (IHL/Order Dynamics, my notation). http://www.marketwatch.com/story/consumers-return-6426-billion-in-goods-each-year-2015-06-18  The article goes on to say that, “Clothing retailers see an average of 10% of their sales returned, the highest among retail segments” (“Consumers  return $ 642.6 billion in goods each year”, June 18, 2015, by Andria Cheng). With 10% of clothing sales being returned each year, there is a lot of room for return fraud and especially fraud related to Wardrobing. According to statista.com, Clothing store sales in the U.S. in 2015 amounted to $183.01 billion. https://www.statista.com/topics/965/apparel-market-in-the-us/ this means in the U.S. alone, approximately $18.3 billion in clothing was returned by consumers. Another interesting point to note is that of retailers surveyed by the National Retail Federation in 2015, “Fewer than half of retailers rated their return policies as “effective” in deterring fraud. (pg. 10, 2015 Consumer Returns in the Retail Industry).  Is there an answer to the problem of wardrobing if less than half the retailers believe they have effective return policies? There IS an effective answer to the problem of return fraud related to wardrobing and that answer is to use Alpha Shark Tags on clothing and softlines accessories.  

Wardrobing is the act of purchasing clothing with the intent of wearing it once or twice and returning it for a full refund. While some may consider this a gray area rather than outright fraud because the consumer abides by the store return policies, they overlook the fact that the stores are not in the clothing rental business. Rental stores exist for this type of consumer, but that isn’t really what a person who is wardrobing desires. What they want is a free outfit to be seen in and returned without the expenditure of any money. Some people think this is just being smart and playing by the other guy’s rules. I would argue that though these customers may be playing a game of semantics, it still hurts the store owner who often has to take a markdown on the item or write it off. Frequently returns have something not right with them, ranging from slight mars to the material or more obvious odors from foods, smoking and deodorants or perfumes.

For stores that decide enough is enough, using the Alpha Shark Tag is a superb method of defeating this type of return fraud. Shark tags, or wardrobing tags as they are also known, are brightly colored tags that are pinned to garments and can only be removed by cutting them off. Once removed, the tags cannot be reattached like manufacturer tags and price tags can be after an item is worn. Wardrobing tags are placed in a location on a garment that cannot be covered up so the purchaser cannot wear the item somewhere without everyone knowing what they are trying to do. By eliminating the opportunity to wear the clothes, the culprits of this type of fraud will discontinue their practice at stores employing Alpha Shark Tags.

I pointed out earlier that fewer than half of retailers felt they had effective return policies. If these retailers would use wardrobing tags they would be able to require all clothing returns to have the tags attached in order to get a refund or exchange. Without the tag being in place a return would automatically be refused, regardless of whether or not the customer had a receipt. Is this being unfair or limiting the customer on their ability to try on an item at home or give it as a gift? The answer in both situations is “No”. Alpha Shark Tags do not interfere with trying on a piece of clothing or affect how it fits. For the gifted item, the recipient can try on an item, leaving the tags intact and if they don’t like it, return it with the gift receipt. As long as retailers make their return policies clear to their customers and enforce their policies they can nearly virtually eliminate return fraud due to worn clothing.

Don’t be taken advantage of any longer by those who wear and return clothes. Improve profits by using Alpha Shark Tags on all of your clothing merchandise!

Wardrobing is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
     

The Lying Witch And Wardobing; A Sales Associate’s Story Of Dealing With Return Fraud

While I have many stories I have shared from my experiences in retail as a Loss Prevention Manager and a sales specialist, my wife also worked in retail for a long time and has her own share of stories to share. One of her problem customers was regularly engaged in return fraud. This particular fraud is now known as wardrobing but at the time the only term for it was return fraud because it involved returning clothing that had already been worn. On the surface that may not sound like an issue however, the condition of the clothes being returned often required them to be marked down or marked out of stock. This particular customer would purchase clothes but would not try them on in the store. She would tell my wife she had to take them home to see how they looked with her shoes and jewelry. Several days later this customer would bring the clothing back and it would sometimes smell of perfume and occasionally there would be make-up stains on them. This happened so regularly that my wife was certain the clothes were being worn out to events and then returned with the tags and receipt. The customer insisted she had not worn them and had only tried them on. My wife described her as a “witch” due to her smug attitude, knowing the return would be accepted. Because of store return policies my wife had to process the refund and give the woman her money back. Store owners still face the same problems today, but now they have Alpha Shark Tags available to them to prevent return fraud.
     

Alpha Shark Tags are one-time use, brightly colored wardrobing tags that are pinned to a piece of clothing in a prominent location. Unlike retail anti-theft devices that are removed by cashiers at a point of sale upon purchase, wardrobing tags remain on the item and are removed by the customer when the customer gets home. The purchaser tries on the clothing, makes sure they like them and once they have finalized their decision to keep the garments, THEN they cut off the Alpha Shark Tags. What if they don’t like the items once they try them on? As long as the wardrobing tags are intact they can return the items with the receipt and store hang tags and get a refund. The same applies if they were to give the items as gifts.  
     

How do Alpha Shark Tags prevent the purchaser from wardrobing and wearing clothes on a night out? Do you recall I mentioned the tags are brightly colored and placed in a visible location? People engaged in wardrobing hide hang tags or carefully remove them and then wear the clothing and no one can tell the clothes are ready to be returned after the evening is over. Shark Tags can’t be cut off or the clothes can’t be returned and if they are in a prominent area of the clothes, they can’t be hidden. Those engaged in return fraud are trying to portray an image and can’t wear something that has a colored tag hanging from it.
     

You may be thinking to yourself, “Okay, so the customer returned some clothes, how much of a problem can one customer be?” The issue is not one customer and one return. There are people that make wardrobing a regular practice and do not see an issue with it. The problem retailers have to deal with is they frequently have to mark down the price of the clothes that are returned or remove them from stock completely. This affects the profit margin for a store and in some cases where employees work on a commission it negatively impacts them as well. That sales commission they were counting on after spending time with the customer selling them their outfit is gone once the return is processed.
     

Avoid the negative effects of dealing with return fraud as my wife had to do. Use Alpha Shark Tags on all of your clothing and watch your profits grow and your wardrobing witches melt away.

Wardrobing is important and we can help you with it. Call 1.770.426.0547 and let’s talk.