If you own, or work for a company with multiple store locations, chances are, you’ve been the victim of return fraud. This type of theft comes in various different forms, but the most common for my business is the most simplistic version. It involves a thief stealing an item from one store, returning it to another for store credit, then buying what they are really after, all while giving the appearance of a legitimate shopper. Not only does this cost the company in the form of the initial theft, but you then give a thief store credit and basically allow them to buy whatever they want, all on your dime.
My company has a no problem/no hassle return policy, with only a few small exceptions. It seems that at least once per week, I’m investigating another case of return fraud. The basic method is easy to track once you spot a suspected fraudster. I simply review CCTV footage of the next closest store prior to the refund. About 70% of the time, I can find them stealing the product at the other store location prior to returning it to the second. This video, coupled with the ID information we obtain makes it very easy to make cases and prosecute these individuals. Well, what about other forms of return fraud that may not be so easily noticeable, or traceable? Have you ever considered that some people purchase clothing to wear for one occasion and then return it? It happens all the time. The practice is known as wardrobing and it can be easily prevented.
It’s been 10 years since high school graduation and it’s time for that reunion. You want a killer dress to wear, but you can’t justify spending $300 for something you’ll just wear once, then throw to back of the closet for years to come. As you’re shopping, you notice the return policy in the store states that all clothing can be returned within 7 days as long as it is unworn is accompanied by a receipt. Well, who will know if it’s been worn or not? Those tags can easily be put back into place and no one will ever notice. If you’re not using an Alpha Shark Tags, you surely are the victim of this scheme.
The Alpha Shark Tags is a small tag that is placed on a very visible portion of a piece of clothing. Usually, you would place the tag in a position where it would be quite visible if someone were wearing the clothing, like on the neck line, or on the sleeves front and center. The Alpha Shark Tags is then easily removed at home by the customer, after the purchase. With a return policy that states that clothing must have the tag still attached in order to be returned, you can easily cut down on return fraud completely.
If you take that example above and conservatively estimate that happens to you at least twice per week, that’s easily over $30k in potential loss that can be added back to your bottom line. How could your business benefit from that extra cash flow? So if you’re tired of customer’s renting your clothes, take a bite out of this fraud scheme today!
For more information, contact us: Alpha Shark Tags, or call 1.770.426.0547