2006 Fashion

Returned Fashion Goods 2006

Consumer Mood 2006
Returns Fraud Abuse in Retail Fashion

By Pauline Weston Thomas for Fashion-Era.com

Consumer Mood 2006

Returns Fraud Abuse in Retail Fashion Goods

Returned Goods

People who persistently return goods may soon find themselves being scrutinised for return fraud.  There are many variations on the return goods scam.  Many of us just return an unworn, bought in a hurry item, because we do not think it quite matches existing items.  Other valid reasons for return are, the garment is a poorer fit than first thought, or our husband hates us in green or whatever colour it is.

But others are basically criminal in their activity of returning used goods without paying a hiring fee.  They have basically rented the item fee free.

A different category of fraud is returning reduced or stolen items for full price cash or voucher refunds.  There are many more variations on this theme, but one thing is sure and that is the retailer is the loser.  Moreover, some of this fraud is from organised dealers in return slips and stolen goods.  Honest customers also lose as stores add a percentage to goods in a cycle of attempting to recoup lost profits.

Sophisticated Returners

Sophisticated returners include those who buy on one day, then wear the item the next day with labels tucked in their garment and then return it the following week.  These sophisticated returners have the nerve to repeat the procedure weekly.

Others are part of organised crime gangs, whereby stolen goods are matched with fake receipts to obtain voucher refunds, which can then be sold online.  Armed with the voucher refunds, these fraudsters use the inflated voucher value in the store.  Some use stolen cheques and then seek a refund before the cheque is cleared.  To this, add employee fraud where employees collude with customers and the problem escalates.

This problem should worry you because;
a) we all on occasion really do want to return goods because we changed our mind
b) because this return fraud is theft and adds to the cost of garments we purchase and keep.

The Effects of Return Abuse

Return abuse drains the profits of retailers and retailers are taking action.

In 2005 Marks and Spencer began a maximum 90 day return time on all their goods.  Some of their stock labels also now state intelligent stock control and whilst this is probably for their own stock allocation purposes, it is clear efforts are being made to comprehend the location where stock goes out from and the different location it arrives back. 

Many shops will only now accept goods back within 28 days.  Some small businesses are now advising customers at the point of sale that they like customers to be satisfied with what they buy when they buy, as they don't do returns.  Of course the latter do lose business because of this, but they don't get defrauded returning cash for goods never honestly purchased.

The majority of people like to think of themselves as ethical and honest and most people are good people.  New computer technology has begun to track consumer behaviour so that blatant returners are spotted before too much abuse is achieved.  You have been warned.

You are reading an original fashion article written by Pauline Weston Thomas© at www.fashion-era.com ©

Read about counterfeit, fake and replica goods.

Page added 23 Jan 2006

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