As you run a business, always understand that from time to time, you can be a victim of various forms of return fraud. If you don’t want your business to be a joke, then you have to know how you can prevent this kind of fraud from happening. From the different kinds of return fraud that most business establishments experience, wardrobing seems to be very common. 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. Before you can prevent wardrobing from happening to your business, you have to know what it is all about and things to do to stop it.
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 scheme begins with the customer buying apparel that is expensive from the boutique like a prom dress or an evening gown. They wear this dress for their event and then return it the next day to the store and get their full refund. The scheme makes everything look legitimate that is why a lot of businesses have been affected by it. 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. While returns are very common for any business, if every customer will return your items, then your business will not last a long time. So, what you can you do to help achieve return fraud prevention?
One of the most effective ways to prevent wardrobing is to use quality 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. You have to see to it that you only use reliable products for avoiding this scheme like the 360 ID tag. It is important to note, though, that the use of return tags is not the only way to combat wardrobing.
For effective return fraud prevention, you have to check your return policy and update it from time to time. Providing your return policy to your customers can be done by directly speaking with them, putting it up on your store signage, and printing it on your receipt. For effective prevention of wardrobing, be sure to apply these methods. You need to state in your return policy that you will only accept merchandise that has been return if it still comes with a return tag. Moreover, there should be absence of evidence of tampering on the product and the tag.
As you use return tags to secure your merchandise, make sure that you place them following instructions from the manufacturer.