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.       

Wardrobing IS Return Fraud-Prevent It With Alpha Shark Tags

In a Dec 17, 2015 report, The National Retail Federation states, “retailers estimate that 3.5% of their holiday returns this year will be fraudulent”. They estimate that this will translate to 2.2 billion dollars. I have not been able to locate the final numbers for this past season, but 2.2 billion is a lot of money by ANY definition. The report did go on to say that 72.6% of the retailers they interviewed said that they have experienced wardrobing in the last year. Of all the return fraud that takes place this is probably the one that creates the biggest headaches for retailers. Wardrobing is the practice of buying an item, wearing it and returning it. There are a few methods to stop the practice, one of the best being Alpha Shark Tags.

Alpha Shark Tags are pinned to clothing and only removed by the purchaser once they get out of the store or get home. These bright colored tags are placed in a prominent location on a piece of merchandise and may even have an optional hang tag warning the buyer about the store return policy. The warning tag lets customers know that once the tag is removed, the article of clothing cannot be returned to the retailer. Since they are one-time use devices, Shark Tags cannot be removed from a garment, and replaced at a later time. 

Why is the one-time use feature of the tag so important? The people involved in wardrobing are in the market to get free use out of merchandise from retailers.Take for example, if your store sells sports coats and a customer comes in who has a job interview coming up. Rather than spend money for a jacket they will only wear once, the customer purchases a sports coat and hides the tags or carefully removes them. The jacket is worn to the interview, brought back home, tags reattached and with receipt in hand, the jacket is returned for a full refund. The retailer makes absolutely no money from the sale and while some major retailers may be able to absorb these types of returns as the price of doing business, the small business owner can’t do the same. With an Alpha Shark Tag attached to that jacket in a location such as a lapel, the customer is unable to wear the jacket with the tag in place. If the customer removes the tag to wear it to the interview the ability to return the jacket is voided.  

Some people argue that wardrobing is not return fraud because they are staying within the return policies set by the stores themselves. If stores establish guidelines such as accepting returns within a set number of days as long as the patron has the receipt, and that is what they as the customer are doing, they see no issue. Often the merchandise returned has stains or odors on them from being worn. While I worked as a Loss Prevention Officer for a large department store I saw clothing returned with make-up stains, food stains, deodorant stains, perfume smells and cigarette odors. Because of the loose return policies, receipted returns were accepted, even with these blemishes. The store damaged the merchandise out and took the loss because the merchandise was not in a sellable condition. Because we tracked refund slips at that time, we knew that there were regular offenders, but we weren’t able to do anything about it.

Alpha Shark Tags are unobtrusive so they don’t interfere with trying on a garment. They allow a customer to purchase an item and take it home to try it on or give it as a gift. As long as the tag remains intact the merchandise can be returned with a receipt. Start using Alpha Shark Tags and boost profits by eliminating wardrobing and return fraud.

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

Don’t Be Intimidated By Wardrobers; Use Alpha Shark Tags To Enforce Return Policies

I have a daughter who works in clothing retail, often at the customer service counter taking returns. Because of our similar backgrounds, I like to ask her about her experiences with attempted return fraud. She recently told me about a customer attempting to return an inexpensive lingerie item that had a shirt tag on it for $32.99. The ticket was from a shirt their store carries, but she said the lingerie piece was not one of their brands. While this is one return she was able to prevent, she did say that she has had a number of items returned that had obviously been worn. She described an incident of a man returning a pair of work pants that had a foul smell and had obviously been worn. Because the customer had the receipt and the tags, the manager on duty accepted the return. Since I have retail management experience, I knew the answer to my own question, but I asked my daughter if they were supposed to take items in this condition back. I also asked her why the managers would do this. The answer: No, they aren’t supposed to take the items back, but some do it to avoid the threat of a call to corporate.

Return fraud situations like this could easily be avoided if clothing retailers would use Alpha Shark Tags on the garments they sell. What is so special about Alpha Shark Tags? These tags are attached to clothing in a location that will ensure they are visible and can’t be concealed. For example, on a pair of slacks a Shark Tag would be applied on a seam near the knee so an untucked shirt cannot be used to cover it up. On a shirt the tag could be applied near the collar so there is no concealing it with a sweater. Wardrobing tags have to be removed once the purchaser gets home and decides they are going to keep the item and wear it. Once removed wardrobing tags can’t be reattached and store policy should dictate that under no circumstance will an item be accepted for a return without tag attached, except in the case of a defect in the merchandise.  

It is an unfortunate reality that many people involved in wardrobing know that it is not difficult to return merchandise they have worn. They are aware that many retail managers at store level don’t like to have an upset customer and they don’t like confrontation. Part of this I blame on the culture that has developed around the concept that “the customer is always right”. No, the customer is not always right, especially when they are trying to commit return fraud. It is important to do the right thing for the customer who is making a legitimate purchase and return, but the people wardrobing are using stores as their personal clothing closet, buying new clothes, wearing them and returning them for full refunds.   Too often I have seen managers tell a customer no to a return and the customer demand the number to a district manager or a corporate phone number. The dreaded threat of a “call to corporate” often ends up with a manager “allowing the return just this once, even though I’m not supposed to”.

Excellence in customer service starts with making your patrons feel welcome when they enter your store and making sure you find out what they are looking for and helping them make the choices that will fit them. Offering suggestions for accessorizing can also make a shopping experience enjoyable, especially for a shopper who may not know quite what will go with an outfit. Finally, ensure that the checkout process is easy and the customer knows exactly what the store return policies are. Customers who are honest will abide by return policies and won’t abuse them as long as a store is upfront about their policies and makes good faith efforts to correct a problem with defective merchandise. 

If you use Alpha Shark Tags and explain the return policy to customers, you can stand by your policy with confidence. Even if YOU are the “District Manager” and “Corporate Office”, you can rest assured your good customers will continue to shop with you and those committing return fraud will find somewhere else to go where they can intimidate managers.   

For more information on Return Fraud, contact us or call 1.770.426.0547  

Are You Loaning Clothes Due To Return Fraud? Alpha Shark Tags Strengthen Return Policies

Do you own a clothing store and worry about return fraud? Perhaps you don’t worry about it because you don’t ever take back any clothing items that don’t have the tags on them. Maybe you don’t take back any clothes without a receipt. It may be that you have a two week return policy and you are strict in adhering to the policy, no exceptions will be tolerated. I would like to suggest that while you may believe you have some good policies in place, there are ways for those who want to commit return fraud to sneak stuff past you. There are also things you as a retailer can do to prevent return fraud, the best option being the use of Alpha Shark Tags.

What is an Alpha Shark Tag? It is a plastic, brightly colored tag that is pinned to a garment by clipping it together. Once it is snapped shut it can’t be removed without cutting it off. It can only be used once, and the customer discards the tag when they get home and decide they want to keep the merchandise. How does this help you, the business owner? You put in place a return policy that clearly states the merchandise cannot be returned if the Alpha Shark Tag is removed. 

One of the more difficult forms of return fraud for retailers to prevent is wardrobing fraud. This occurs when the customer purchases clothing and wears it then returns it for a full refund. The person who is wardrobing is removing the clothing tags from the garment or possibly hiding the tags, then wearing the clothing out that night or day. After wearing the item the tags are reattached and the item goes back to the merchant. In most instances, since the tags are in place and the customer has a receipt, the item is refunded.   

Now as fantastic as this may sound, you are probably asking how a customer can reattach their own clothing tags and price labels.  A little internet shopping and I found I can purchase a tag attachment gun from Amazon for as little as $10.79! The plastic “hangers” that the gun uses can be purchased at any office supply store. What a great scam! I could come to your store, purchase a new suit, tie and shirt and leave. I get home, remove the tags from the clothing and wear it for a night out with my wife. When I am done with the suit, I reattach the tags with my $10.79 attachment gun and return it to your store with my receipt. My reason for the return? I just wasn’t satisfied and no, nothing is wrong with it, thank you very much. You may just credit it back to my credit card. Now consider the same situation, but this time you had Alpha Shark Tags on the garments I purchased. If I were to cut off the Shark Tag, you aren’t going to take back the return and if I leave them on, I would look really silly wearing the suit out to dinner.  
     

Does this really happen? You bet it does. There are people who do this for a living. They like the image of wearing new clothes to work, or for a night out and never having to be seen in the same outfit twice. Why bother with a clothing rental store when they can get their clothes for free and return them within the limits set by the store? Do the clothes ever have odors or stains from food or make-up on them? Yes, they do occasionally and some of the bigger retailers will still return the items and take the loss when they defect the clothes or mark them out of stock.  
   

 Don’t allow yourself to be the victim of return fraud. Begin using Alpha Shark Tags on ALL your clothing items and stop being an unwitting target of those involved in wardrobing. Your good customers will appreciate buying new, unused merchandise and the ones who are defrauding you will take their business elsewhere.

For more information on Alpha Shark Tags, contact us or call 1.770.426.0547

Curtail Return Fraud – Clip Clothes With Alpha Shark Tags

Often return fraud is easy to identify. Someone comes in with a receipt and they present a piece of merchandise that doesn’t match any information on the receipt and they want money back. It may be a case of not paying attention and getting the wrong receipt from home, but if they are insistent on getting cash, not a merchandise card or a credit on a credit card, it is probably a fraudulent return. Merchandise being returned with the wrong tags is another fairly easy method to detect. There are thieves who have tag attachment guns at home and can change out tags on garments. These fraud attempts can be prevented by sales associates paying attention to the merchandise returned and ensuring all the appropriate information matches. On the other hand, there is also return fraud which can be a little more difficult to prevent. There are people who will pick up receipts from outside the store, and if they know how to read the information, they go into the store, find a matching item and take it to the return desk for a refund. There are also those people who will enter a store, walk past an unoccupied check lane, pick up a store shopping bag and then proceed to fill it up while posing as a customer. These people then “return” the merchandise, in most cases without a receipt. Often they don’t mind receiving a gift card or merchandise card because they turn around and try to sell it to another customer. The most difficult fraud to deter is wardrobing. This is the customer who buys an item, wears it a time or two and returns it for a refund. They ALWAYS keep the receipt and the tags so there a fewer chances that a refund will be denied.  There is only one good method to prevent this type of return fraud and that is to use Alpha Shark Tags on your clothing.  

Alpha Shark Tags prevent wardrobing because they are pinned onto a piece of clothing and cannot be removed and re-attached when the clothing is done being worn. These are one-time use only devices and have to be removed by the customer. They are to be pinned in a highly visible area of a shirt, slacks, skirt or any other garment and the customer cuts the tag off at home when they are ready to wear it out. The purpose is so that if someone attempts to wear the item out with friends or even to work as a “New Outfit” the tag makes it clear that the item is intended to be returned. Imagine the embarrassment of wearing a new suit into a job interview and a bright orange tag is hanging from the tie, from the seam along the edge of the knee on a pair of slacks and one from the collar of a suit coat. The interview is probably going to be somewhat awkward when the applicant has to explain what the tags are for.  

If your store is using Alpha Shark Tags and you have made your store return policy very clear, there will be no cause for your store to take back an item that has had the tags removed. The use of these tags will reduce the shortage you incur each time you refund and a garment that has been worn and may have odors or makeup on it. Those items are often marked way down and the loss is in your gross margin.  

Don’t become a victim of wardrobing and other types of return fraud. Use Alpha Shark Tags on your clothing and see how much your profits will increase when you don’t have to mark items out of stock or take excessive markdowns.

For more information on Alpha Shark Tags, contact us or call 1.770.426.0547 today.