Is 'buy and return' smart shopping? Or is it simply theft?
After enjoying a decent holiday shopping, North American retailers are once again another headache: merchandise returns and the con games that accompany them.
According to a National Retail Federation survey,
return fraud cost merchants an estimated $8.9 billion in 2012, with
nearly 30% coming during the holiday season. Overall, the
survey shows that something like 4.6% of holiday returns are fraudulent.
Virtually every retailer (97%) reported being stung by crooks who collected refunds for stolen items, and almost half (47%) said they’d received fake receipts.
Equally common is the practice of "renting'' electronics for a few days or wearing an item for a special occasion then returning it — a practice called "wardrobing.'' Nearly two-thirds (65%) claim they've been stung this way within the last year.
Recently, a group of men used counterfeit checques and stolen credit cards to purchase gift cards that were then used to purchase expensive gowns from high-end retailer Nordstrom.
After the gowns had been to a few gatherings, the group would return them to Nordstrom for a full refund. In total, they reportedly stole $150,000 using this scheme.
Ok, that's fraud. But what about using something for a day or two and then bringing it back?
Just as bad, says NRF's Joe LaRocca, who argues that it's often unsuspecting buyers who get stung in the end.
"In these cases, dishonest shoppers bring back used, non-defective merchandise for a complete refund. In most cases, the retailers are able to detect that the holiday dress has make-up on the neckline or the laptop computer includes someone’s term paper, and are forced to take a loss on the item completely or discount it substantially to move it out the door. On occasion, though, these items slip through the cracks and are returned to store shelves, enabling unsuspecting shoppers to literally purchase someone else’s leftovers. That doesn’t sound too “harmless” to me."
Do you see anything wrong with the practice of temporary ownership? Are you practioner? Have you ever been stuck with someone else's returns?
By Gordon Powers, MSN Money
Posted by: Troy Jollimore | Jan 15, 2022 12:16:56 PM
It's abusing the system. Stores allowing returns is a courtesy, albeit a necessary one. However, the general public more and more sees this practice as allowable. "Need a computer for a couple days? Buy it, use it and then return it! What's the harm?" They don't see the economic impact this has (or they don't care), or they'll be the ones crying when returns are cracked down on, or abolished.
I don't do it personally, because it's *morally* wrong. You need something, you rent or purchase it. You need to do SOMETHING to support the store and the manufacturer.
Posted by: Dee | Jan 16, 2022 12:49:41 AM
I am in Retail and it is absolutey disgusting the condition items are in or the 2 - 3 month borrowing of
merchandise . I have a hard time being cheerful when I am sure it is a fraudulent practice
among consumers. A watch clearly worn and has scuff marks on the bracelet portion and has been
used for almost 3 months then returned and the retailer has to write it off. Then there is the Spring
get-aways, load up a complete wardrobe and costume jewellery and then return 2 - 3 weeks later.
I think the Retail sector needs to tighten these rules across the board and put a stop to this. Super
Bowl, get a big screen and return a few weeks later, morally wrong big time ! Shameful .
Posted by: mike | Jan 16, 2022 10:19:29 AM
I am not surprised by this practice, but I do doubt that the numbers are remotely has high as the companies are saying. With the prices going sky high for no reason other than pilfering the pocketbooks of the shoppers, I can see why it happens. The companies say this costs tehm billions, but they still make billions.. what does thay say about the prices?? And this does not really cost them nearly what they say, they are allowed to write off the loss, so in fact is only costs them a fracton of what they are saying. I don't personally do this, but I have returned some things after a couple of uses,I bought a pair of shoes for $60 and they lasteed 2 weeks and the soles came apart. I say they should lower the prices to make a fair profit, sell better quality products for a fari price, or just shut the hell up and live with the only way some people feel justice against the machine is done.
Posted by: Don | Jan 18, 2022 6:36:50 PM
We all pay for these types of practices. You think the store does....think again. They raise their prices to account for shrinkage. (my expereince was 3 - 5 %) There is a differance between returning a substandard item after using it and fnding it doesnt hold up than buying something with the plan to use and then return. I worked for 15 years in retail and have seen most of it, from people who return appliances and get a new one every year (most stores dont require receipts for straight accross swaps if you say it is defective and they carry the product) to ones who have told me items at check outs are put there to be stolen. Most larger retailers mow have systems in place the flag names of people that return more than XXX items per year.
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