Wardrobing: Ten Questions Every Fashion Retailer Should Ask

Wardrobing, the practice of purchasing items, using them, and then returning them for a refund, poses a significant challenge for retailers.

In our recent working group meeting we learnt from new academic research commissioned by ECR Retail Loss that 14%, from a sample of 5,900 shoppers aged 15-45, admitted to this form of returns abuse, that circa 90% of the incidents related to clothing, for example, formal wear suits and dresses, but power tools, lawn mowers, tents, and many more items can also be vulnerable to this form of returns abuse.

We learnt too that 97% said they experienced no difficulties returning items they had no intention of buying, and 63% said they would do it again. Finally, we found that 10% of those shoppers who admitted to wardrobing, accounted for 35% of the incidents.

From the discussion that followed, with experts from leading online retailers, we were able to create a list of ten key questions that can help all retailers, especially fashion, understand the scope of the problem, identify potential solutions, and implement effective prevention measures. The ten essential questions retailers should consider:

1. Understand the Scope of Wardrobing:

What is the current rate of wardrobing in our stores and online platforms? Which product categories are most affected by wardrobing? Are there specific times of the year when wardrobing incidents increase? What is the financial impact of wardrobing on your business?

1. Identify Wardrobing Patterns:

What are the common characteristics of the customers who engage in wardrobing? Are there specific geographic regions or stores with higher incidences of wardrobing? What are the typical behaviours or patterns associated with wardrobing (e.g., frequent returns, high-value items, specific return reasons)?

1. Evaluate Current Return Policies:

How do our return policies compare to those of our competitors? Are our return policies too lenient, making it easy for customers to engage in wardrobing? Do our return policies clearly communicate the consequences of returns abuse and wardrobing?

1. Assess Prevention Measures:

What prevention measures are currently in place to deter wardrobing? How effective are these measures in reducing wardrobing incidents? Are there any new technologies or tools that can help us better detect and prevent wardrobing? How can we leverage data analytics to identify and track potential wardrobers?

1. Enhance Customer Communication:

How can we educate customers about the impact of wardrobing on our business and other customers? What communication strategies can we use to discourage wardrobing without alienating honest customers? How can we use customer feedback to improve our return policies and prevention measures?

1. Implement Technological Solutions:

Can we implement tamper-proof tags or other physical deterrents on high-risk items? How can we use AI and machine learning to identify suspicious return patterns? What role can loyalty programs play in monitoring and preventing wardrobing?

1. Train and Empower Staff:

How can we train our staff to recognise signs of wardrobing and handle suspicious returns? What protocols should be in place for staff to follow when they suspect wardrobing? How can we ensure that staff are supported and empowered to enforce return policies?

1. Balance Prevention with Customer Experience:

How can we balance the need to prevent wardrobing with maintaining a positive customer experience? What impact will stricter return policies have on customer satisfaction and loyalty? How can we ensure that genuine customers are not unfairly penalized by our prevention measures?

1. Monitor and Adjust Strategies:

How will we monitor the effectiveness of our wardrobing prevention strategies? What metrics will we use to measure success? How often will we review and adjust our strategies based on new data and feedback?

1. Collaborate with Industry Peers:

What best practices can we learn from other retailers who have successfully managed wardrobing? Are there opportunities for industry collaboration to address wardrobing collectively? How can we share insights and strategies with other retailers to improve overall industry standards?

By asking these questions, retailers can begin to develop a comprehensive understanding of their wardrobing problem, identify effective prevention measures, and implement strategies that balance fraud prevention with customer satisfaction.