Straight to the point
There are shoppers out there who buy garments already knowing they’ll return them…
When discussing returns in fashion e-commerce, we tend to think of customers who ordered the wrong size or whose expectations didn’t live up to the product description. But there’s a sneaky little trend that’s been making waves and not the kind we’d like to see.
We’re talking about wardrobing.
If you’re unfamiliar with the term, wardrobing happens when someone buys a piece, maybe a show-stopping dress or designer bag, uses it once or twice, and then returns it as if it’s never been touched.
Essentially, it’s a free rental hack, but it’s costing retailers big time – billions of dollars annually, according to the National Retail Foundation. Maybe you’ve already felt the impact of wardrobing, or maybe you don’t even realize some of your shoppers are taking advantage of your return policies.
In this blog post, we’re diving into what wardrobing is, why people do it, and what you can do to fight back.
What is wardrobing?
Wardrobing is a type of return fraud: shoppers purchase garments to wear once or twice and then return them to get their money back. It feels oddly specific to our times, with generous return policies and the ease of online shopping that allows customers to “borrow” instead of buy.
A common example is buying a dress or formalwear for a special event, wearing it for the occasion, and then returning it for a refund—essentially using the item as a rental without paying rental fees. While this practice is most associated with clothing, it also extends to electronics, tools, and even home décor items.
Why is wardrobing such a big deal?
Because it hits your fashion e-commerce store right where it hurts: your bottom line. Unlike in physical stores, there’s no immediate inspection of returns, which makes it easier for wardrobing to fly under the radar. Plus, online shoppers enjoy the anonymity of the process, which can make their fraudulent behavior feel less… questionable.
Why do people commit wardrobing?
While we can’t be entirely sure what goes through a shopper’s mind when they wardrobe, there are a few common factors that could help explain why it’s become so prominent.
Knowing They’ll Only Wear it Once
Whether they need something fashionable to wear to a wedding or a fresh look for a formal occasion, some shoppers know full well that they won’t wear a specific outfit or garment more than once. So why commit to purchasing it? Instead, they wear it once and return it for a full refund – only costing you in reverse logistics and potentially unsellable products.
The Social Media Effect
Social media has made fashion feel like a revolving door. With Instagram-worthy moments and TikTok trends coming and going faster than ever, there’s immense pressure to look fresh and on-trend all the time.
For many, re-wearing the same outfit is not an option. Wardrobing offers a quick fix: social media users can purchase new clothing, snap some photos to post to their feeds and collect likes and comments while passing the financial burden on to you, the retailer.
“No Consequences” Mentality
Unlike outright theft, wardrobing exists in a gray area. It’s not explicitly illegal, and retailers’ generous return policies make it easy to pull off without fear of repercussions. Many shoppers don’t even think of it as fraud. To them, it’s a harmless way to save money and avoid paying for something they know they’ll only wear once.
The Thrill of the Hack
Let’s be honest: some people enjoy beating the system. For these shoppers, wardrobing isn’t just about saving money. It’s about the satisfaction of gaming the process. It’s a challenge, and the return policy is their playground. In the same way that some people get a thrill from shoplifting cheap items, people could be wardrobing for a quick dopamine fix.
How does wardrobing impact your store?
Wardrobing creates a significant financial burden for your online fashion store. When items are returned with visible signs of use, they can’t be resold as new. This means you must either discount the items heavily, refurbish them at an additional cost, or write them off completely. The financial hit doesn’t stop there; free return shipping and processing costs add up quickly, eating into your profit margins.
The operational strain is just as impactful. Managing returns requires time and resources, from inspecting items for wear and tear to handling restocking or disposal. For high-demand items, frequent fraudulent returns disrupt inventory levels, making it harder to meet genuine customer demand. This creates missed sales opportunities and frustrates loyal shoppers who can’t find their size or preferred styles.
Perhaps the most damaging aspect of wardrobing is its effect on your customer relationships. Retailers rely on generous return policies to build trust and loyalty. However, when these policies are exploited, you may feel forced to impose stricter rules, risking alienating your honest customers. Striking the right balance between fraud prevention and customer satisfaction becomes a constant challenge.
What can you do about wardrobing?
Wardrobing is tricky, but it’s not unstoppable. Here are some ideas of how you can fight back against wardrobing.
- Clear, No-Nonsense Return Policies: A well-written return policy is your first line of defense. Spell out what’s acceptable: unworn, tags intact, and returned within a specific timeframe, and make it clear that refunds will not be issued for items that don’t meet these guidelines. You may also want to consider shorter return windows for high-risk items like formalwear.
- Smarter Tech to Spot Red Flags: AI to the Rescue! Machine learning can help detect patterns, like customers with frequent high-value returns or those who keep returning items just before their due date. These insights let you step in before wardrobing gets out of hand. Don’t be afraid to ban or send warnings to customers that are making too many returns.
- Tamper-Proof Tags: Visible, tamper-proof tags like 360 ID Tags are a game-changer. They’re nearly impossible to remove without being damaged, making it obvious if something’s been worn and returned. As long as your return policy clearly states that you won’t accept returned items without tags intact, this can quickly solve your wardrobing problems.
- Customer Education: Sometimes, shoppers just don’t realize the harm they’re causing. Use your blog, social media, and emails to educate customers about how wardrobing impacts prices, sustainability, and even their favorite brand’s ability to thrive.
- Offer Rental Options: If you suspect your shoppers are purchasing items to use for a single occasion and then return them, why not give them a legitimate way to do so? Rental programs let shoppers use an item for a fee, satisfying their needs without harming their margins. Similarly, you could also start a buyback program where you offer shoppers store credit for their lightly used items, which you can then sell at a discounted price.
- Thoroughly Inspect Returns: Train your team to check for wear and tear, missing tags, or other signs of use. If an item doesn’t meet your return criteria, it’s fair to deny the refund or issue a partial one.
Keep Customers Happy While Protecting Your Business
The trick to tackling wardrobing is finding the right balance. You want to prevent abuse without making honest shoppers feel punished. Transparency, education, and smart fashion tech solutions can help.
And don’t forget the sustainability angle; wardrobing isn’t just a financial burden; it’s an environmental one, too. By addressing this issue, you’re not just protecting your bottom line; you’re making a stand for fair, sustainable fashion.
So, what’s next for you? Whether it’s adding tamper-proof tags, tweaking your return policy, or exploring rental options, there are plenty of ways to stay ahead of fraudsters. After all, fashion should feel suitable for everyone involved – online retailers included!
Looking for more ways to improve your fashion e-commerce store’s performance? Check out our introduction to fashion e-commerce marketing.
