Factory outlets are supposed to be places where you can get great deals on brand name clothing, but they aren't always what they seem. This video explains how some outlet stores are ripping you off, and some red flags to watch out for.
In this video, the Vox YouTube channel and Chavie Lieber from Racked go over some of the misconceptions about modern outlet stores. You may think you're getting discounts on name brand stuff that was returned or couldn't be sold last season, but that's probably not the case. Lieber suggests that most of the stuff you'll find in an outlet store was probably made by a third party vendor and not the brand itself. This usually means the clothing was hastily made and designs are probably made with cheaper fabric, buttons and less stitching.
In fact, it's estimated that around 85% of the clothing in outlet stores was made specifically for those outlets. So that tag that says "originally $500" is very misleading. It's more likely that design was shipped off to a third party and made to be sold for cheap. None of this is to say that you shouldn't stop at outlet stores, however; there are still plenty of great deals to be had. Just be sure you do your research and know what to look for when you shop there.