Supply Chain World - Volume 7, Issue 3 - 29

CONSUMER RETURNS

warehouses - making these periods an
optimum time in which returns fraudsters can operate.
Brands combat this by implementing
a temporarily modified returns policy
for the holiday season. By restricting
the period during which products can
be returned following a holiday like
Christmas, honest customers will be
motivated to act quickly and there won't
be much of a chance to use the item
fraudulently before returning it.

Step 2 - Enforce a Strict
Receipt Policy
Many returns scammers rely on retailers
being overly generous when it comes to
proof of purchase requirements.
Scammers will often attempt to scam
a retailer by attempting to return products which did not originate there. The
motivations for this may include being
desperate for money and not wanting to
wait to return the product to an online
seller, or the refund was refused for
some reason at the legitimate origin -
unreasonable damage or wear and tear
to the product, for example.
Requiring a receipt to be presented
when requesting a refund can help
your business check returns against
records and make sure it was you that
made the sale.

Step 3 - Wardrobing
One of the most irritating forms of
returns fraud that plagues the fashion industry is the practice known as
wardrobing. Wardrobing refers to the
concept of buying an item of clothing for
a specific event, wearing it to that event,
and then returning it for a full refund the
very next day, citing some other reason
for the return.
Because they've often been worn
to parties, or some similar event, the
items frequently cannot be resold and
so represent a significant source of lost
revenue for fashion brands.

Organized retail crime losses
are a growing problem, with 92
percent of firms reporting they
were a victim of this last year.

Technology can help solve the wardrobing issue. Gadgets such as the Shark
Tag work by providing a way for customers to prove the item hasn't been used
before returning it. The tag is designed
to be unsightly but is easily removed
by the customer when they get home.
However, once removed, the tag cannot
be reattached.
This means clothing retailers can alter
their returns policy to state that returns
will only be accepted if the Shark Tag is
still attached.

Step 4 - Restocking Fees
Like wardrobing, there is a common practice of people purchasing big-ticket items
like televisions, using them to watch a
major event like the Super Bowl, then
returning said item for a full refund.
Retailers of these kinds of items can
help combat this by charging a restocking fee for returned items. This additional cost will make scammers think

twice about targeting your brand for
these kinds of schemes.

Final Thoughts
Returns fraud will likely remain a thorn
in the side of the retail industry. However, by employing some or all the strategies detailed above, the threat from
fraudulent returns can be mitigated as
much as possible.
Returns fraud is set to be a hot topic
at Consumer Returns Management
2019, the conference where retailers and
brands optimize their returns management processes
Taking place this October at the Hyatt
Regency Austin, Texas, it is customized to help you organization reducing
returns, preventing fraud, unleashing
profitability. Get 25 percent off your
pass with discount code: CR19SCW
Download the agenda today for
more information and insights: http://
bit.ly/2ZW6fsn
VOLUME 7, ISSUE 3 Supply Chain World

Supply Chain World - Volume 7, Issue 3

Table of Contents for the Digital Edition of Supply Chain World - Volume 7, Issue 3