The buy-wear-return-repeat mentality cultured the costly cycle of ecommerce returns from fashion brands, billing a $218 billion apparel return loss. Citing many factors that contribute to ecommerce returns from fashion brands, customers have even managed to hold cash on delivery policies responsible for averaging 40% return rates. However, e-commerce fashion brands are striking back with creative tactics to tackle this loyalty loop.
How have ecommerce returns from fashion brands paved the way?
Decoding the e-commerce return numbers
- If the typical return frequency directed a 20-30% return on an average e-commerce website, virtual fashion brands alone shipped a 30-40% return ratio.
- Over 53% ecommerce returns from fashion brands were accounted for from their most recent 90-day purchase quo.
- US companies annually incurred $25.1 billion in processing costs from their overflowing stock wasted on purchase returns.
What accounts for ecommerce returns from fashion brands?
Ecommerce returns from fashion brands can be widely reasoned. From 45.9% of consumers returning an item for simply disliking it to 8% of the shoppers engrossing the return rate for a change of mind.
Guilty with sizing troubles
We have all been here, or how else could we physically assess the ordered size?
- 23% of menswear were reportedly shipped back for either being too small or big.
- Females aged 25-34 have registered a 22% in reverse shipment, stating similar concerns.
- Children’s fashion brands are not spared, as 31% return rates have been owned by them.
Opaque communication
Lack of transparency in showcasing the product has subjected 21% of consumers to justifying their ecommerce returns from fashion brands for fraudulent advertising. This often leads to receiving products far from their descriptions.
10% of consumers have documented damaged items processed or packaged to their doorstep, among which 13% blame their faulty design.
A change of mind
8% of shoppers tend to swap their choices for better ones or simply regret choosing the former one. This trend has ultimately led to statistics revealing that within the past 12 months, a probability of 26% was primarily noted as ecommerce returns from fashion brands.
Lenient return policies
The more flexibility of return policies can bend through, the more consumers are likely to buy.
- 91% of consumers expressed their willingness to purchase an item tagged with ease for return.
- 81% of retailers in a surge to combat ecommerce returns from fashion brands have approached restrictive return policies to fund low return rates.
- 54% of consumers have been caught off-guard aware of the return policy changes.
- 41% of e-commerce retailers are likely to reconsider their return policies.
Price tag of ecommerce returns from fashion brands
How costly can your e-commerce return be? Or what goes on behind the curtains to process a single e-commerce return quest.
Environmental concerns
If you’re probably thinking how ecommerce returns from fashion brands could possibly damage the environment, then allow me to walk you through.
- Apparently less than 50% of returned products can be reused or recycled for production or marketing purposes.
- In such a scenario, the e-commerce returns are likely treated as production waste. This trend has now been actively contributing yearly to the 5 billion ton landfills piling up from industrial excess.
Legitimate or illegitimate choices
- Ecommerce users fraudulently deceiving retailers for undue benefits cost ecommerce sales $23.2 billion in losses.
- Ecommerce returns from fashion brands have risen to the top, with 48% of consumers resorting to bracket their purchases, pointing out sizing concerns.
- An active e-commerce website return tab has cited a $33 loss for $50 expensed goods.
Cycle of debt
Cost of return logistics is a primary concern for retailers, as most of them don’t own the goods they sell. Unsold goods keep a retailer’s credit in check by the logistics provider.
Warehousing costs
Clean and undamaged goods require equipped warehouse maintenance that season a retailer’s e-commerce return costs.
Bare customer loyalty
Most customers plant unrealistic expectations when it comes to their refund order fulfillment. Some go as far as expecting a refund process immediately or within 5 working days.
Unhappy customers are likely to devalue your customer service ratings, which could prove detrimental for retailers.
How do e-commerce fashion brands get creative with returns?
Returns are an inevitable part of e-commerce shopping, as over 67% of retail shoppers scrutinize a brand’s return policy before making a purchase.
Consumers find a brand’s approach to ecommerce returns from fashion brands to elevate or downgrade their shopping value.
Exchange for a return
An innovative approach to solve ecommerce returns from fashion brands, as 83% of consumers are satisfied with being incentivized with an exchange for a return. This upscaled 11% e-commerce revenue, with customers being offered a $10 extra if an item is exchanged than an average return for the same item.
What looked like a 75% refunded return has now transformed into 49% exchanged goodies.
Your perfect fit on the first try
A retailer’s frequent shoppers have reported a 41% return, while 46% of consumers validate their return on poor fitting size. This is where User Generated Content (UGC) comes in hand.
Imagine a visual graphics page alongside your e-commerce platform that can pool in imagery of a range of individuals of different body sizes trying the same outfit. This is prevalent as it is deemed to be inclusive among customers as they can relate to the modeled individual comfortable in their body size.
Ecommerce website is now a fashion guru
Recently, Amazon joined the trend of providing an umpire of suggestions for every purchase made. You can style your outfit on the website with their premium recommendations that complement your chosen ensemble.
Automate return shipping
Over 96% of shoppers expect an easy return process, among which 76% vouch for free shipping with every return. Consumers that have felt blindsided to pay for return shipping averaged 69%.
Notably, it is sustainable to culture returned items for bulk shipping at the logistics center by accumulating them once rather than individual transportation. Warehouse and return strategy automation can process consolidating bulk amounts within less time and effort.
Reward returns
Encouraging customers with cheaper drop-off options of their purchases with competitors works as a staple for reimbursing bulk transportation costs. Low-cost drop-off engages customer inclination toward the brand as they are allowed to shop at the retailer’s store by storing their previous purchase at their store.
Regional logistics
Companies can save themselves from costly returns with a localized supply chain and logistics hub.
3D virtual shopping
Suit your body type with the ecommerce fashion brand website’s size availability with a three-dimensional body scan. Ecommerce retailers incorporating a 3D scanning process to get the consumer’s body size to match its digital twin has elevated personalized shopping assistance.
Now retailers no longer have to experience a single customer purchasing multiple sizes to return the unwanted ones, fighting bracket returns.
Frequently asked questions
What is the solution to e-commerce returns from fashion brands?
Enabling your e-commerce website with AI tools for consumers to assess the right size, opting for regional logistics, rewarding, and automating your return shipping experience are some of the common solutions. Refer to the above article for more information.
Why do consumers choose e-commerce returns?
Ecommerce returns are inevitable for e-commerce websites. But ecommerce returns from fashion brands have widely experienced this, owing it to sizing issues to lenient return policies to take advantage of. Infer the above article for further details.
How often do ecommerce returns from fashion brands occur?
Over 26% of e-commerce returns rely heavily on fashion apparel. Refer to the above article for further information.
Conclusion
Ecommerce fashion brands should be well aware of the intricacies that shape their return culture and customer response. Consistently adhering to a wide range of practices (as stated in the article) and research that can upgrade their customer shopping experience is key to avoiding costly ecommerce returns from fashion brands.
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