AST-3 , Wardrobing-3 , Return Fraud-3
Knock Out Wardrobing With Alpha Shark Tags
I have a couple of customers that I dread seeing come through the door. One or two in particular are just habitual returners. Our store offers a rewards program that gives coupons based on the purchase of certain items you buy. So they buy those things just to get the coupons and then they come back later claiming they needed to return it for some ridiculous reason. And I’m not allowed to ask for the return of the coupon. They get away with this blatant return fraud and it drives me crazy. Although it is not really considered wardrobing because they are not using the item before bringing it back, there are times I have to take a markdown on the item. I can’t be sure they didn’t leave a cosmetic item like lipstick in a hot car all day, so I have had to just throw it out sometimes.
It’s bad enough to buy something with the intention of returning it for a full refund, but I just read about a much worse trend. Now there are people that go in and buy high end merchandise, then come back later and return a knock-off or counterfeit item that looks similar. For example, a lady went and bought a super high priced designer hand bag for about $500. She waited a couple of days and came back to return the purse claiming buyer’s remorse. Of course, she had her original receipt and the sales lady recognized her from the original purchase. What the clerk did not realize was that she was actually refunding a very well made fake that the lady had bought for around $20 at a local flea market. This takes return fraud to a whole new level, folks.
There is a solution though, and it is the same one that stores use to combat wardrobing. Alpha Shark Tags were introduced to the market many years ago to solve that problem and they can be used to stop this as well. Many clothing retailers have suffered losses from return fraud for years. The shopper comes in and purchases a party dress along with shoes and some other accessories. A couple days later they come back with the receipt and expect a full refund because that was all the store policy required. Take a moment and just imagine the sweat stains in the armpits, the cigarette smoke smell, the makeup ring around the collar, and even the scuffs on the shoes. And this clown is now standing in front of you claiming she just doesn’t want the stuff anymore and you are supposed to give a full refund with a smile. That’s wardrobing in a nutshell and that is exactly why Alpha Shark Tags were invented. Now store staff just clips the tag right on the front of the dress (sometimes with a copy of the store’s return policy) and if the tag is removed, the item is not eligible to be returned.
If your store is going to sell merchandise that is known for being copied and sold at deep discounts, you need to know how to identify the authentic stuff and weed out the knock-offs. It can be difficult. Sometimes the police that raid these flea market booths have trouble telling the difference. One way you can tell if the stuff is real or at least really sold by your store is use Alpha Shark Tags. Clip one inside all your designer hand bags and before a return can be processed, you open the bag and inspect it. If the tag is not intact and in the bag, then you send them back out the door and on their merry way.
Get more information on Alpha Shark Tags. Contact us or call today: 1.770.426.0547
I have a couple of customers that I dread seeing come through the door. One or two in particular are just habitual returners. Our store offers a rewards program that gives coupons based on the purchase of certain items you buy. So they buy those things just to get the coupons and then they come back later claiming they needed to return it for some ridiculous reason. And I’m not allowed to ask for the return of the coupon. They get away with this blatant return fraud and it drives me crazy. Although it is not really considered wardrobing because they are not using the item before bringing it back, there are times I have to take a markdown on the item. I can’t be sure they didn’t leave a cosmetic item like lipstick in a hot car all day, so I have had to just throw it out sometimes.
It’s bad enough to buy something with the intention of returning it for a full refund, but I just read about a much worse trend. Now there are people that go in and buy high end merchandise, then come back later and return a knock-off or counterfeit item that looks similar. For example, a lady went and bought a super high priced designer hand bag for about $500. She waited a couple of days and came back to return the purse claiming buyer’s remorse. Of course, she had her original receipt and the sales lady recognized her from the original purchase. What the clerk did not realize was that she was actually refunding a very well made fake that the lady had bought for around $20 at a local flea market. This takes return fraud to a whole new level, folks.
There is a solution though, and it is the same one that stores use to combat wardrobing. Alpha Shark Tags were introduced to the market many years ago to solve that problem and they can be used to stop this as well. Many clothing retailers have suffered losses from return fraud for years. The shopper comes in and purchases a party dress along with shoes and some other accessories. A couple days later they come back with the receipt and expect a full refund because that was all the store policy required. Take a moment and just imagine the sweat stains in the armpits, the cigarette smoke smell, the makeup ring around the collar, and even the scuffs on the shoes. And this clown is now standing in front of you claiming she just doesn’t want the stuff anymore and you are supposed to give a full refund with a smile. That’s wardrobing in a nutshell and that is exactly why Alpha Shark Tags were invented. Now store staff just clips the tag right on the front of the dress (sometimes with a copy of the store’s return policy) and if the tag is removed, the item is not eligible to be returned.
If your store is going to sell merchandise that is known for being copied and sold at deep discounts, you need to know how to identify the authentic stuff and weed out the knock-offs. It can be difficult. Sometimes the police that raid these flea market booths have trouble telling the difference. One way you can tell if the stuff is real or at least really sold by your store is use Alpha Shark Tags. Clip one inside all your designer hand bags and before a return can be processed, you open the bag and inspect it. If the tag is not intact and in the bag, then you send them back out the door and on their merry way.
Get more information on Alpha Shark Tags. Contact us or call today: 1.770.426.0547
Is it wrong to wear a piece of clothing once and return it for a refund? Some people would say, “No” to the question. Looking at various web sites there are some who mildly discourage the practice such as I found in a Market Watch column. The columnist, Quentin Fottrell responds in part to a query asking a similar question, “If you bought a dress that cost a lot of money, wore it to a party and realized you hated it and you would never wear it again, and it was still in pristine condition, then perhaps returning it would be understandable (though you might want to tell the sales staff that you did wear it once, to be 100% honest)”. He does go on to add, “But doing this regularly begins to cross a line”. If you are a clothing retailer, what is the impact of this practice, known as wardrobing on your business? Obviously the first thing to consider is can you sell the returned merchandise for full price? If you don’t sell it for full price, how much of a loss do you take on profit margin? One thing the writer pointed out that must be considered by retailers whose employees work on commission, is the negative impact on the sales person who sold the item being returned. How much of a game is played at their expense? Wardrobing isn’t harmless and retailers should make every effort to prevent it. One way to do so is by attaching Alpha Shark Tags to clothing.
Alpha Shark Tags prevent wardrobing because the retailers that use them can establish return policies that do not permit the return of clothing that has had Alpha Shark Tags removed. This works because the tag is a one-time use only device that clips onto articles of clothing, as well as shoes, purses, wallets, etc. The device is not to be removed by store employees at the time of the sale, as is the case with retail-anti theft devices. The Shark Tag has to be cut off by the purchaser after he or she leaves the store. A return can be denied when the tag has been removed, so long as the return policy is clearly stipulated. The tags are not going to interfere with the ability to try on merchandise, so clothing can be gifted and returned with a gift receipt and intact tag.
How big is the problem of wardrobing in the United States? According to The Retail Equation 2015 Consumer Returns in the Retail Industry Annual Return Survey, which incorporated the results of the National Retail Federation 2015 Return Fraud Survey Results, approximately 6.1% of returns in the U.S. were classified as Return Fraud and Abuse as a percent of total returns. The estimated amount of return fraud and abuse was 15.9 billion dollars. According to the loss prevention senior executives in the 62 retailer companies who were surveyed, 72.6% said their stores had experienced this type of fraud in the past year. One other key point from the report, “Fewer than half of retailers rated their return policies as effective” in deterring fraud.
Are the return policies in your store effective at preventing fraud? Do you even know if your store is experiencing return fraud? If 72.6% of Loss Prevention executives believe their stores have been impacted by wardrobing, then there is a strong likelihood it is taking place in your store(s) as well. By investing in Alpha Shark Tags and applying them to ALL of your clothing items and accessories, you can prevent being a victim of this activity. Keep you profits higher by reducing your exposure to fraud and having an “effective” return policy.
Return Fraud is important and we can help you with it. Call 1.770.426.0547 and let’s talk.
Small and medium business owners today have to remain competitive with the “Big Box” stores in order to remain in business. This can be terribly difficult in a retail environment in which a large national chain can afford to cut prices of merchandise to the bone in order to drive out competition. Price cutting isn’t the only thing small retail store owners need to be concerned with they also have to compete with return policies that may be quite liberal in some businesses. There are some retailers that will take back almost anything, receipt in hand or not, worn or new, this includes clothing. To be clear, in some cases if the customer does not have a receipt they may not get the full price they claim to have paid but they usually can get something from these stores even if only a store credit. Smaller retailers are not in a position to offer such extravagant return policies, especially when clothing appears to have been worn then returned, a practice known as wardrobing. The small business owner who specializes in clothing sales can eliminate the risk of wardrobing fraud by using Alpha Shark Tags on merchandise.
People who engage in the practice of wardrobing purchase clothing with the intent of wearing it a time or two and then returning it. These people are careful to keep their receipts and the tags from the item(s) purchased. Sometimes they will slip the tags off and leave the plastic tag hanger. Other times the tags will be taped so they are still attached but inside the garment so it is out of sight. There are even people clever enough to purchase tag attachment guns and re-tag clothing when they are ready to return it. When an Alpha Shark Tag is used on a piece of clothing, it is unlike retail anti-theft devices that are removed at the point of sale. This tag is designed to be used only once and is removed by the customer when they get the item home and decide to keep it. It does not hinder someone from trying on the garment to be sure it fits properly. Alpha Shark Tags give retailers the ability to refuse a return if the tag is not attached to clothing. The tags should be attached in a location on a piece of clothing that they will stand out. If someone were to try wearing a garment with a tag attached it would be obvious that person intended to return the item later. The tags are also brightly colored so they are clearly visible to everyone.
By eliminating the risk of clothes that have been worn a retailer need not worry about not being able to resell merchandise. When worn or used clothing items are returned the retailer is forced to try to mark down the price of the item thereby losing profit margin. In some cases the clothing can be too damaged and the merchandise has to be marked out of stock entirely. In this situation, there is risk of losing not just profit margin, but cost as well.
By using Alpha Shark Tags and being consistent in a return policy a retailer is not going to risk losing legitimate customers. Shoppers who are honest are only annoyed by inconsistency in store refund policies where they are allowed a return in one instance but turned down later when the circumstances are the same. Shoppers don’t want to make a purchase, get home and find out something doesn’t fit and then get refused when they bring the merchandise back to the store. When Shark Tags are used a store only needs to make sure it is clear to buyers that a return is not permissible if the tag is removed.
Wardrobing fraud is real and can eat away at a store’s profits. Find out how Alpha Shark Tags can reduce return fraud and improve your bottom line.
Need more information on wardrobing? Give us a call at 1.770.426.0547 now.
Return Fraud-4, CP Labels-2, Alpha Shark Tags-3
Return Fraud: Theft By Deception
Many customers today consider a store’s return policy to be synonymous with their level of customer service. Modern customers consider the ability to return merchandise as a right instead of a privilege, and many refuse to shop at stores with strict policies. A lot of stores have lightened up their return policies to the point they are accepting everything, with or without proof of purchase. Unfortunately with the race for grabbing the market share of shoppers, came the trade off for billions of dollars of loss due to return fraud. It has become a monumental problem, and has grown by more than 25% since 1995.
1. Return fraud reduces sales, gross margin, and profit. There is the loss of the profit from the original sale as well as the investment made into buying the merchandise to re-sell.
2. The company loses the time and money spent processing the refund. Then they must determine if the items can be resold. And, if they can be, the loss of time restocking the merchandise back to the shelf.
3. Returns that can’t be resold must then be dealt with, via some form of markdown or just thrown out in the trash. Cosmetics, many clothing items, and even electronics can not be resold for full value if they have been opened and used, even only once.
I deal with returns on a daily basis at the small retail pharmacy I work for. We sell a variety of health and beauty items, and we have a pretty basic return policy. If you have a receipt, you have no problem. Without a receipt, we are supposed to issue a store credit on a card. It works just like cash, and has very few restrictions for what people can purchase with it. It is also completely up to the manager’s discretion whether to accept the return or not. When a customer attempts to return a high retail item without a receipt, I trust my gut more than anything to detect return fraud. We had a guy that was going to some of our stores and trying the same routine at every one of them, and he was very successful. The guy would come in without being seen and go grab a store brand box of hair regrowth formula. Then he would go to the front door and act as though he just came inside. He would come to the checkout and claim he needed to return it because he had an allergic reaction to the product. He would start talking to the cashier or manager, claiming he had talked to our corporate office and they had told him he could get cash back for the item even though he had no receipt. I advised all of our stores to conceal Checkpoint labels inside the box. Sure enough, at the next store he tried, he got back to the front door and the alarm sounded because of the active Checkpoint labels present inside the packaging. BUSTED!
A clothing retailer has a little more of a challenge than the pharmacy business though. People buy clothes many times with no intention of keeping them in the first place. They are what we call wardrobers and they buy it, wear it, and return it expecting a full refund. A new great way to battle this type of return fraud is to attach Alpha Shark Tags to the clothing inventory. (Talk about taking a bite out of crime!) Alpha Shark Tags are a simple tool that becomes a crucial part of the store’s return policy. The tag is designed to be removed at home with a simple pair of household scissors. Once removed, however, the item is no longer eligible for returns. No more buying a party dress to show off for the big neighborhood cookout just to return it two days later, smelling like smoke and spotted with barbeque sauce. Alpha Shark Tags are the new weapon against wardrobers and they are very effective in stopping this especially heinous form of return fraud.
For more information on Return Fraud, contact us or call: 1.770.426.0547
Many customers today consider a store’s return policy to be synonymous with their level of customer service. Modern customers consider the ability to return merchandise as a right instead of a privilege, and many refuse to shop at stores with strict policies. A lot of stores have lightened up their return policies to the point they are accepting everything, with or without proof of purchase. Unfortunately with the race for grabbing the market share of shoppers, came the trade off for billions of dollars of loss due to return fraud. It has become a monumental problem, and has grown by more than 25% since 1995.
1. Return fraud reduces sales, gross margin, and profit. There is the loss of the profit from the original sale as well as the investment made into buying the merchandise to re-sell.
2. The company loses the time and money spent processing the refund. Then they must determine if the items can be resold. And, if they can be, the loss of time restocking the merchandise back to the shelf.
3. Returns that can’t be resold must then be dealt with, via some form of markdown or just thrown out in the trash. Cosmetics, many clothing items, and even electronics can not be resold for full value if they have been opened and used, even only once.
I deal with returns on a daily basis at the small retail pharmacy I work for. We sell a variety of health and beauty items, and we have a pretty basic return policy. If you have a receipt, you have no problem. Without a receipt, we are supposed to issue a store credit on a card. It works just like cash, and has very few restrictions for what people can purchase with it. It is also completely up to the manager’s discretion whether to accept the return or not. When a customer attempts to return a high retail item without a receipt, I trust my gut more than anything to detect return fraud. We had a guy that was going to some of our stores and trying the same routine at every one of them, and he was very successful. The guy would come in without being seen and go grab a store brand box of hair regrowth formula. Then he would go to the front door and act as though he just came inside. He would come to the checkout and claim he needed to return it because he had an allergic reaction to the product. He would start talking to the cashier or manager, claiming he had talked to our corporate office and they had told him he could get cash back for the item even though he had no receipt. I advised all of our stores to conceal Checkpoint labels inside the box. Sure enough, at the next store he tried, he got back to the front door and the alarm sounded because of the active Checkpoint labels present inside the packaging. BUSTED!
A clothing retailer has a little more of a challenge than the pharmacy business though. People buy clothes many times with no intention of keeping them in the first place. They are what we call wardrobers and they buy it, wear it, and return it expecting a full refund. A new great way to battle this type of return fraud is to attach Alpha Shark Tags to the clothing inventory. (Talk about taking a bite out of crime!) Alpha Shark Tags are a simple tool that becomes a crucial part of the store’s return policy. The tag is designed to be removed at home with a simple pair of household scissors. Once removed, however, the item is no longer eligible for returns. No more buying a party dress to show off for the big neighborhood cookout just to return it two days later, smelling like smoke and spotted with barbeque sauce. Alpha Shark Tags are the new weapon against wardrobers and they are very effective in stopping this especially heinous form of return fraud.
For more information on Return Fraud, contact us or call: 1.770.426.0547
Alpha Shark Tags-5 WC Blog 130
Wardrobing-5
Wardrobing tags-3
Return Fraud-4
Wardrobing Is Return Fraud By Another Name And It Costs You Money
Back in my day (don’t you cringe when you hear that?) when I worked in retail loss prevention, if someone attempted to return an item after they had worn it we called it return fraud. Today there is a fancy word for it “wardrobing”, the same offense but a nicer term. If you own a clothing store or manage one and have little experience with retail crime, I want to explain how wardrobing works, how it affects your business and how you can prevent it by using Alpha Shark Tags.
How does return fraud work? A customer purchases a piece of clothing and takes it home. Maybe they wear it to a party or to go clubbing. Who doesn’t want to impress friends with their new digs? Usually, the item is only worn once (you can’t be seen in the same garment twice that would be tacky) and then they return it to you with the receipt. No harm, right? I’ll answer that question in a minute. In order to prevent future wardrobing incidents, you need to know about the Alpha Shark Tags I mentioned. These are tags that are attached to clothing and must be removed by the customer when they get home. They are one time use only so they cannot be reattached. This is the key to the Alpha Shark Tag; if a customer attempts to return a garment that no longer has the wardrobing tag attached, the return is automatically declined! You have no more need to take back used clothing and you can also avoid those lengthy arguments with customers who argue with you.
Here is a hypothetical conversation involving a suspected wardrobing return:
Customer: I want to return this, here is my receipt
You: It looks like it was worn
Customer: It didn’t fit
You: But it has make-up on the collar and it smells like perfume
Customer: It was like that when I bought it! Here is my receipt and the tags are on it.
You: I can’t take this back.
Customer: (raising her voice and making a scene) Your policy says I can return it within 30 days if I have my receipt. Don’t make me call corporate on you! I’ll make sure I tell all my friends not to shop here and I’ll call the police!
You: I’m very sorry, here is your refund
Now the same conversation at your return counter if you use wardrobing tags on merchandise. Here is a hypothetical return without a tag:
Customer: I want to return this dress, here is my receipt.
You: I’m sorry, the Alpha Shark Tag has been removed I can’t take this back. The return policy is clearly stated.
Customer: You mean you won’t take this back, it didn’t fit?! (Incredulity in voice)
You: Correct.
As a former big box store executive I have had the unpleasant experience of dealing with customers who returned merchandise that was clearly worn or used. They would yell, cry, rant and rave and threaten me with calls to the District Manager or worse yet, the dreaded CORPORATE call! I have seen managers cave in to these patrons out of fear of confrontation or fear for their job. By using wardrobing tags, you can put an end to these conversations.
I also mentioned that there is harm caused by wardrobing. If you are taking back merchandise that has been worn, you may be marking it down to resell it, causing profit margin loss for you. You may be taking back items that are too stained or smelly to sell and you have to mark them out of stock altogether and take the full loss on the item. When you take losses due to return fraud, you mark up your merchandise prices to help cover the costs and that harms your good clientele. Not to mention, mark up your merchandise too much and you may find you lose customers and your business.
Return Fraud does not have to be “a cost of doing business”. Use Alpha Shark Tags on the clothes you sell and keep your business profitable by accepting only legitimate returns. Your honest customers will appreciate you for working to keep prices down. You will enjoy the boost in profits.
Get more information on wardrobing, contact us or call 1.770.426.0547 today.
Back in my day (don’t you cringe when you hear that?) when I worked in retail loss prevention, if someone attempted to return an item after they had worn it we called it return fraud. Today there is a fancy word for it “wardrobing”, the same offense but a nicer term. If you own a clothing store or manage one and have little experience with retail crime, I want to explain how wardrobing works, how it affects your business and how you can prevent it by using Alpha Shark Tags.
How does return fraud work? A customer purchases a piece of clothing and takes it home. Maybe they wear it to a party or to go clubbing. Who doesn’t want to impress friends with their new digs? Usually, the item is only worn once (you can’t be seen in the same garment twice that would be tacky) and then they return it to you with the receipt. No harm, right? I’ll answer that question in a minute. In order to prevent future wardrobing incidents, you need to know about the Alpha Shark Tags I mentioned. These are tags that are attached to clothing and must be removed by the customer when they get home. They are one time use only so they cannot be reattached. This is the key to the Alpha Shark Tag; if a customer attempts to return a garment that no longer has the wardrobing tag attached, the return is automatically declined! You have no more need to take back used clothing and you can also avoid those lengthy arguments with customers who argue with you.
Here is a hypothetical conversation involving a suspected wardrobing return:
Customer: I want to return this, here is my receipt
You: It looks like it was worn
Customer: It didn’t fit
You: But it has make-up on the collar and it smells like perfume
Customer: It was like that when I bought it! Here is my receipt and the tags are on it.
You: I can’t take this back.
Customer: (raising her voice and making a scene) Your policy says I can return it within 30 days if I have my receipt. Don’t make me call corporate on you! I’ll make sure I tell all my friends not to shop here and I’ll call the police!
You: I’m very sorry, here is your refund
Now the same conversation at your return counter if you use wardrobing tags on merchandise. Here is a hypothetical return without a tag:
Customer: I want to return this dress, here is my receipt.
You: I’m sorry, the Alpha Shark Tag has been removed I can’t take this back. The return policy is clearly stated.
Customer: You mean you won’t take this back, it didn’t fit?! (Incredulity in voice)
You: Correct.
As a former big box store executive I have had the unpleasant experience of dealing with customers who returned merchandise that was clearly worn or used. They would yell, cry, rant and rave and threaten me with calls to the District Manager or worse yet, the dreaded CORPORATE call! I have seen managers cave in to these patrons out of fear of confrontation or fear for their job. By using wardrobing tags, you can put an end to these conversations.
I also mentioned that there is harm caused by wardrobing. If you are taking back merchandise that has been worn, you may be marking it down to resell it, causing profit margin loss for you. You may be taking back items that are too stained or smelly to sell and you have to mark them out of stock altogether and take the full loss on the item. When you take losses due to return fraud, you mark up your merchandise prices to help cover the costs and that harms your good clientele. Not to mention, mark up your merchandise too much and you may find you lose customers and your business.
Return Fraud does not have to be “a cost of doing business”. Use Alpha Shark Tags on the clothes you sell and keep your business profitable by accepting only legitimate returns. Your honest customers will appreciate you for working to keep prices down. You will enjoy the boost in profits.
Get more information on wardrobing, contact us or call 1.770.426.0547 today.
