THE TAG BLOG

FEBRUARY 16 2024

REVOLUTIONIZING E-COMMERCE RETURNS WITH A TAMPER-EVIDENT TAG

Our Journey at the Reverse Logistics Association's 2024 Startup Competition

We're excited to share the details of our recent triumph at the Reverse Logistics Association's 2024 Startup Competition. Not only did we participate in this prestigious event, held in Las Vegas, but we also had the honor of being selected as the People's Choice Award winner, a testament to the effectiveness and relevance of our mission.

During the competition, our Founder, Chelsea Duhs, delivered a compelling pitch that addressed a pressing issue in the e-commerce industry: return fraud, specifically the deceptive practice known as "wardrobing." With her extensive experience selling designer clothing on eBay, Chelsea recognized the detrimental impact of wardrobing on retailers' profitability and sustainability and invented the 360 ID Tag.

Wardrobing: the fraudulent practice of returning non-defective items after use with a receipt.

OUR PITCH ABOUT WARDROBING RETURN FRAUD

Wardrobing is more than just a financial inconvenience – it disrupts reverse logistics channels, erodes profit margins, and contributes to environmental waste. In fact, according to the National Retail Federation, 49% of retailers reported experiencing wardrobing.

In part, this statistic is due to the fact that wardrobing is not perpetrated by organized crime; it is regular people masquerading as bad actors gaming the returns honour system with no consequences.

Chelsea also covered the most common reasons why people commit the fraudulent practice of wardrobing. Specifically, it relates to the desire to wear something new regularly and to not repeat outfits. But who can afford that? Think parties, family photos, Instagram posts and the "wannabe influencers" all out there looking good at the retailers' expense. Now imagine if everyone did this!

Additionally, with rising cost of living, meaning less disposable income, this may tempt more consumers to turn to wardrobing.

Wardrobing is committed by people who want to wear something new on a regular basis but without any financial commitment

She also mentioned how wardrobing has seemingly become so easy to do. Chelsea said "Reason number 1: the convenience of free shipping and free returns. Add to that manufacturers' tags typically being on the inside of apparel or secured with safety pins and plastic barbs that are so easy to replace. Then, there's the ease of making returns combined with the anonymity of online shopping. Consumers don't have to talk to a customer service agent. They simply put the item back in the box and wait for their refund confident they will get away with it."

So, how did we tackle this pervasive problem? Enter the 360 ID Tag – a serialized and tamper-evident tag designed to disrupt the wardrobing cycle by making it impossible to wear and return items unnoticed. Unlike traditional tags, which can be easily removed or replaced, our solution adds an extra layer of security, safeguarding against counterfeit product switches and price tag alterations.

The 360 ID Tag – a serialized and tamper-evident tag designed to disrupt the wardrobing cycle by making it impossible to wear and return items unnoticed.

The anonymous nature of e-commerce exacerbates the problem of wardrobing and return policy abuse.

But our solution isn't just effective – it's also practical and affordable. The 360 ID Tag is easy to apply, does not damage merchandise, and allows customers to try on items at home while ensuring they cannot be worn and returned for a refund. And with costs starting from just 22 cents per use, the return on investment is significant, with lower return processing costs offsetting the initial expense.

During her pitch, Chelsea highlighted the diverse applications of the 360 ID Tag, from high-end fashion to wigs and intimate apparel. Our solution is not only used by e-commerce merchants; it's also widely used by home-based marketplace sellers and eco-conscious brands like Stella McCartney, who recognize the importance of protecting their merchandise and managing returns sustainably.

But perhaps the most exciting part of our journey is what lies ahead. With talks underway with e-commerce giants boasting impressive annual revenues, we're on the brink of exponential growth and impact. As more retailers recognize the value of proactive solutions like the 360 ID Tag, we're confident that we can make a meaningful difference in the e-commerce landscape.

Our success at RLA's 2024 Startup Competition is a testament to the dedication and ingenuity of our team and distributors. We're grateful for the opportunity to share our vision with the world, and we're more committed than ever to revolutionizing e-commerce returns for the better.

We thank our customers for their ongoing support.

The 360 ID Tag Team

Chelsea Duhs is the Founder of 360 ID Tag, a highly visible, anti-return fraud tag designed to help e-commerce businesses prevent return policy abuses like wardrobing, wear and return, and counterfeit product switches.

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