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Wardrobing: How E-commerce merchants can combat return fraud

APRIL 2025

WARDROBING RETURN FRAUD: STILL DRAINING RETAIL PROFITS IN 2025

As e-commerce continues to expand—from global giants to independent Shopify stores and home-based marketplace sellers—profitability remains a key goal. However, with this growth comes a costly consequence: return fraud. At the forefront is one of the most pervasive challenges in the industry—wardrobing.

According to the Retail Returns Report by the National Retail Federation (NRF) and Happy Returns, $890 billion worth of merchandise is expected to be returned in 2024—16.9% of all U.S. retail sales. Of that, an estimated $101 billion was tied to fraudulent returns. These numbers underscore an urgent need for smarter return strategies that protect revenue without penalizing honest customers.

93% of retailers reported that retail fraud and other exploitive behavior is a significant issue for their business

WHAT IS WARDROBING?

Wardrobing—also called “wear and return”—involves buying merchandise, using it once (often for an event, social post, or photoshoot), and returning it for a full refund. It’s a modern form of shoplifting, disguised by generous return policies, happening in plain sight, facilitated by flexible return policies and the anonymity of online shopping.

With the convenience of online returns and little to no face-to-face accountability, consumers are emboldened to return worn items that would never pass inspection in-store.

Unsurprizingly, 56% of merchants in the Retail Returns Report indicated that wardrobing increased compared to last year.

WHO’S WARDROBING—AND WHY?

Surprisingly, it's not just hardened criminals—it's everyday consumers. In a 2020 survey conducted by 360 ID Tag, 37% of respondents admitted to returning items after wearing or using them. Many of them are well-educated professionals earning over $50K a year, indicating that there is no typical profile for a return fraudster.

50% of Gen Z and 39% of Millennials admitted to returning a worn item.

Source: NRF, 2024 Consumer Survey.

Why do they do it?

  • Special occasions – Events like weddings, proms, or interviews prompt consumers to purchase items with the intent to return them after a single use.
  • #OOTD culture – The desire to post unique outfits on platforms like Instagram leads to the “snap-and-send-back” culture.
  • Peer pressure – The fear of outfit repetition, amplified by online appearances.
  • Economic stress – Inflation and cost-of-living pressures lead to “borrowing” from retailers.
  • ‘Harmless’ fraud perception – Many justify wardrobing as a victimless act.
  • Buyer’s remorse – Buyer’s remorse often follows brief use, prompting dishonest returns.
Return tag, secure return tag to prevent wear and return wardrobing 360 ID Tag

The serialized tamper-evident 360 ID Tag must be removed before wearing the item in public. Shown here is the Classic Loop Pack - 22mm.

FRAUD AT SCALE: THE WARDROBING IMPACT

The NRF’s report confirms that the highest return rates continue to plague online sales, where consumers are not only more likely to return items—but also more likely to abuse the system. Wardrobing costs aren’t just monetary—they’re operational, reputational, and environmental.

1. Financial

  • Lost revenue from unsellable goods
  • Used merchandise can't be resold at full price
  • Higher shipping, handling, and processing costs
  • Reduced margins from markdowns or liquidation

2. Operational

  • Additional labor is required to inspect and process returns
  • Inventory management headaches
  • Slower restocking and out-of-stock issues

3. Reputational

  • Honest customers may receive previously worn items, leading to loss of trust
  • Negative reviews can spread quickly and impact consumers' decision making

4. Environmental

  • Returns drive CO₂ emissions from reverse logistics
  • 9.5 billion pounds of returned goods end up in U.S. landfills annually (up from 5 billion pounds in 2017)
  • Contradicts sustainability efforts

DETECTING WARDROBING FRAUD

Identifying wardrobing can be challenging, but some indicators include:

  • High number of returns from a single customer.
  • Evidence of wear or use, such as odors, stains, or alterations.
  • Missing tags or tags that are reattached using different methods.

But detection alone isn’t enough.

A PROACTIVE SOLUTION: THE 360 ID TAG

Rather than tightening return policies—which risk alienating honest shoppers—e-commerce retailers are turning to physical deterrents like the 360 ID Tag.

This tamper-evident return tag system makes it impossible to wear and return the same item. It’s looped through apparel, shoes, and accessories and sealed with a unique, serialized security seal. Customers can inspect and try the item at home but must remove the tag to wear it publicly—making the item ineligible for return.

If the tag’s been tampered with, the fraud is evident. The 360 ID Tag doesn’t damage delicate fabrics or leather and buyers ready to commit to their purchase can easily remove it with scissors or by peeling back the seal.

Clothing return tag prevent wear and return wardrobing 360 ID Tag

Thread the 360 ID Tag through merchandise to prevent wardrobing. Shown here is the Classic Loop Pack - 22mm.

They work!

"These tags with unique serial numbers are a life saver. I sell high end clothing online, after adding these tags onto the garments, I have lowered my returns. When an item gets returned, as sometimes it will, the tags are still in place, a clear indication that the item was not worn. In the past two years of using these 360 ID Tags, I have had only two returns and items were in perfect condition when returned and I was able to simply re-list them again. Thank you 360 ID Tag for a perfect product that actually works!"

- CM

A PROACTIVE SOLUTION: THE 360 ID TAG

E-commerce businesses can continue offering flexible returns without being vulnerable to fraud. By integrating a clear, visible deterrent, brands can maintain customer trust, protect their margins, and align with sustainability goals. The 360 ID Tag offer a subtle but powerful way to discourage dishonest behavior while preserving the post-purchase experience.

Clothing return tag prevent wear and return wardrobing 360 ID Tag

Ship your item with a 360 ID Tag attached. Customers can still try the item on with the return tag attached.

If you’re looking for a scalable, affordable, and easy-to-implement solution to combat wardrobing return fraud, we’d love to help.

Feel free to leave a comment below or contact me directly at info@360idtag.com, and I will be happy to assist you.

CHELSEA DUHS - FOUNDER 360 ID TAG

Find the right 360 ID Tag pack for your business

We offer a variety of 360 ID Tag packs, with different combinations of return tag material and tamper-evident security seals. You can also create a custom combination to fit your specific needs. Browse our 360 ID Tag products and select the return fraud solution that best suits the types of products you sell online.

E-commerce return security tag on skirt. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on skirt. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce, tamper evident return security tag showing VOID. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
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Return Fraud Tag Kit for General Apparel – 48 Seals

Return Fraud Tag Kit for General Apparel – 48 Seals

$28.95
Shoe security tag. Sneaker security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Shoe security tag. Sneaker security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
Eyewear security tag. Sunglasses security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
E-commerce return security tag on jewelry. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
Ring with secure return tag attached to prevent wear and return fraud. 360 ID Tag
E-commerce return security tag on jewelry, bracelet. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Stop fraudulent returns. 360 ID Tag.
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E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag tamper evident security seal VOID. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals

Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals

$43.95
Handbag return tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to handbags, accessories to stop fraudulent returns. 360 ID Tag
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E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on shoes. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
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Compact Return Tag Kit for Belts, Bags, Straps & Buttonholes – 192 Seals

Compact Return Tag Kit for Belts, Bags, Straps & Buttonholes – 192 Seals

$43.95
E-commerce return security tag on wedding dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on wedding dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on jeans. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
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Return Tag Kit for Dresses, Coats & Formalwear – 48 Seals

Return Tag Kit for Dresses, Coats & Formalwear – 48 Seals

$43.95

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