When you own a business, you can always expect a variety of return fraudulent acts from your questionable customers. For those who don’t want to be victims of this fraudulent act, you want to find ways to prevent them from happening to you and your employees. One of the most common types of return fraud that many businesses encounter is wardrobing. Despite the common occurrence of this kind of fraud scheme, many merchants are unaware of its existence and don’t even know what the term means. Sadly, these same merchants are the ones who become victims of wardrobing. The best way to avoid wardrobing from happening to you and the business that you are running is to learn what it is all about.
The first thing that you need to understand about wardrobing as a fraud scheme is that it often happens to apparel boutiques that are high-end. The whole scheme starts with the customer purchasing apparel like an expensive evening gown or even a prom dress. They purposely wear the dress on one occasion and then come back the next day to the store to return it and get a full refund. The scheme appears very real, affecting a lot of establishments for many years. Without a good return policy in place, you end up making your store a rental agency that does not make any profit but only be taken advantage by this scheme. Even if returns are expected in any business, if each customer does it to you, then you end up closing your business doors for good. Now, what are the ways for you to save yourself from return frauds?
If you want to save your busines from wardrobing, be sure to utilize reliable return tags. When it comes to return fraud prevention, the use of reliable return tags has always been noted to be the most effective method there is. While you can choose from different products to avoid this scheme from happening to your business, you have to go with a brand that has been proven and tested to work such as the 360 ID tag. It is important to note, though, that the use of return tags is not the only way to combat wardrobing.
If you want to practice proper return fraud prevention, you have to make sure to look at your return policy and update it as necessary. For your return policy to be visible, consider setting up a signage for it in your store, printing it on your receipts, and speaking about it to your customers. As much as possible, you should apply these three methods. In your return policy, specify that you will only accept products returned to you if they still come with return tags. At the same time, your policy should state that there must not be any evidence of tampering both on the tag and the merchandise to be returned.
As you use return tags to secure your merchandise, make sure that you place them following instructions from the manufacturer.