Alpha Shark Tags- 5                                                                                                                                 WC Blog 262
Wardrobing-5
Wardrobing Tags-3
Return Fraud-4
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!
Return Fraud is important and we can help you with it.  Call 1.770.426.0547 and let’s talk.
     

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.