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A survey of U.K. consumers commissioned by returns specialist ReBound found 84% claiming they have not and would not commit fraud, but 31% think wardrobing — the practice of using an item then returning it as unused — doesn’t count as fraud.
The survey still found that 57% deemed wardrobing as unethical.
Another recent survey of U.S. consumers from returns management software provider Loop found 31% of respondents engaging in wardrobing at least once a week and another 11% doing it once a month. Bracketing — ordering multiple items to try on knowing that most will be returned — was found to be slightly more common, with 54% agreeing they commonly partake in the practice.
Loop’s survey found that 36% of respondents engaged in fraudulent behaviors because they only needed an item for a specific event. However, 72% also believed that with all other things being equal, if a company lets them wear or use items with the ability to return some or all of them, they will choose to buy from that company over a competitor that doesn’t let them wear or use the items.
Loop notes in its study, “The line between customer convenience and business protection is sometimes blurry.”
Retail returns abuse is steadily climbing in part because consumers are increasingly comfortable taking advantage of flexible return policies to engage in wardrobing or bracketing, according to the NRF.
A survey from U.K. e-commerce software firm Brightpearl found that 61% of U.S. retailers would consider banning serial returners. However, ReBound said retailers have to distinguish between the customer who has wardrobed five items but kept 30 within a year and the consumer who ordered and returned five items in total.
ReBound’s Marketing Manager Laura Garrett explained, “Your serial returners who buy a lot of items and then return a few are often your best customers (despite driving a percentage of your refunds) and so should be treated differently than fraudsters and the other kind of serial returners who consistently return everything they purchase.”
Loop advised clearly outlining what’s allowed as part of return policies. Asking customers for feedback to provide more accurate size measurements or better product photos online can also reduce the need for home try-ons. Charging a return fee and allowing free returns only for loyalty program members or first-time purchasers can also help curb return abuse without alienating top customers, according to Loop.
Loop’s survey also found that among customers who haven’t abused return policies, the reason they don’t is because they worry about ethical/moral guilt (67%), have a fear of the legal consequences (14%), or worry about the impact on the business/retail industry (13%). Of all respondents, 53% consider potential environmental consequences when making a return.
Loop wrote, “By emphasizing your brand’s values, as well as the consequences that could result from instances of abuse, you can appeal to customers’ emotional, moral, and logical inclinations — encouraging them to think more carefully before purchasing an item they don’t intend to keep.”