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6 tips to reduce your fashion retail online return cost

  • 6 min

Summary

👉 Get your free diagnosis now!

Summary 

  • Charging fees to return online purchases is a controversial issue, with retailers and consumers often at odds.
  • However, there are ways to enhance the customer experience and ease the fashion retail online return cost challenges.
  • Discover a complete size and fit advisor for your fashion online store. Discover Sizebay and book your free demo now!

For every $1 billion in sales, retailers lose an average of $145 million in returns. These are the figures from the United States National Retail Federation. 

That’s almost 15% of your revenue down the drain if you’re not keeping a close eye on your return rates. If you’re not doing this yet, your business needs to develop a plan and act. 

Want to know when free returns are a smart move for your online retail? Our guide provides the answers you need to maximize profits and keep customers happy. 

Enjoy your reading! 

Sumário

  • Why track your fashion retail online return cost? 
  • What exactly is fashion retail online return cost? 
  • How to reduce your online fashion retail return costs?
  • Benefits of a virtual fitting room in reducing your store's return costs
  • Reduce your fashion retail online return cost with Audaces technology
  • FAQ

Why track your fashion retail online return cost? 

Tracking your fashion retail online return cost shows you how much money your business loses when people return clothes. 

This is especially important when your e-commerce offers free returns. It can encourage the customer to take action and complete the purchase. 

While free returns can be an incentive, they’re not always without their drawbacks. Factors like distance from your distribution and the number of items purchased impact your costs. 

That’s why you need to dedicate a team to oversee your reverse logistics. Excessive returns are a red flag, signaling a potential issue with your online store. 

When your average return rate is high, your product descriptions could be the culprit. Customers need clear information, even if you have multiple sizes available. 

As a result, many companies began charging customers for returns. While this might help with immediate costs, it can deter online shoppers in the future.

Learn more: A practical guide to sell clothes online and achieve more success 

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What exactly is fashion retail online return cost? 

Fashion retail online return cost refers to the expense of returning an item to an online retailer. The retailer or the customer can bear this cost, depending on the store’s return policy. 

The cost of returns involves several things beyond just shipping. Once the items come back, workers have to check the products. Then, restock them, or decide if there’s any damage. 

Sometimes items can’t just go back on the shelf. They might need some fixing or repackaging. The materials for this, like new boxes or bags, add to the cost. 

Moreover, while the item was out, someone else might have missed the chance to buy it. If you take too long to process returns, there’s a chance you might lose a chance to sell it again quickly. 

Add it all up and you’ll see that online fashion retail return costs can end up being expensive! They can negatively affect your bottom line and result in financial losses.

Learn more: 4 examples to enhance your fashion business with recurring revenue 

How to reduce your online fashion retail return costs?

A virtual fitting room can help reduce your fashion retail online return cost.

Online returns are a consumer right in most places. The key is to establish a strong exchange policy and work towards reducing the number of returns. Here’s how to do it: 

1) Work with high-quality products 

Working with high-quality products enhances customer satisfaction and strengthens your brand image. In addition, it reduces complaints and the number of returns or exchanges. 

When customers receive a product that doesn’t match the images online, they feel deceived. Your clothing items must have the same fit and quality as your e-commerce photos show. 

Poor-quality items lead to frustration and negative reviews. More than just return costs, it can harm your business reputation.

Learn more: 8 tips on choosing garment types for your fashion collection 

2) Improve product photos and descriptions 

Use clear photos from different angles and write detailed descriptions. It helps customers know exactly what they’re buying, reducing confusion or disappointment. 

A compelling product description should include details such as colors, style, fit, and any special features. Mention the type of fabric, its properties, and care instructions. 

Don’t forget to show product availability and your return and exchange policy. This might seem trivial, but all these factors can lead a customer to return a product.

Learn more: 5 fashion buying and merchandising tips to sell more 

3) Add a product review option 

Adding a product review option can be a powerful tool for reducing your fashion retail online return cost. They offer honest feedback about product quality, fit, and performance.

Potential customers can use this information to make more informed purchasing decisions. It helps reduce the likelihood of returns due to unexpected issues. 

If you go a step further and allow users to add photos to their reviews, it’s even better. This way, future buyers can identify with bodies that are similar to theirs. 

This is very helpful for clothing, as customers can see how items look on different body types. 

4) Offer a detailed size chart 

A clear and accurate size chart empowers customers to choose the correct size based on their measurements. 

This reduces the guesswork involved in online shopping. Therefore, reducing the risk of buying an item that doesn’t fit. 

The more measurements you offer, the less likely customers are to make mistakes. Be sure to guide them on where to measure for the best fit. 

Give clear instructions like “measure around the fullest part of the hips, keeping the tape level”.

Learn more: Check out 8 advantages of the clothing measurements chart for the fashion business 

5) Have a good virtual clothing try-on tool 

A virtual try-on tool lets customers see how clothes might fit them before buying. They gain confidence in their choice and can help lower the fashion retail online return cost. 

Size & Fit is Sizebay’s solution to enhance your customers’ shopping experience. It addresses one of the most common challenges: finding the perfect fit. 

Using cutting-edge technology, it helps online shoppers to find the right size. This minimizes the chances of poor fit and, therefore, returns.

Learn more: Boost your e-commerce store with a clothing virtual fitting room 

6) Prioritize customer service 

Make sure your customer service team is friendly and helpful. If customers have issues with their orders, good support can solve problems quickly. 

It makes shoppers less likely to return products out of frustration. Moreover, you can delight customers with your service, in addition to the quality of your product. Turn them into loyal brand advocates! 

Benefits of a virtual fitting room in reducing your store’s return costs

It's important to keep your fashion retail online return cost low so it won't affect your profits.

More interactive shopping experience 

A virtual fitting room makes online shopping more interactive and enjoyable. By letting customers see how clothes will fit them, a virtual fitting room reduces uncertainty. 

This helps to minimize returns that often occur due to sizing or style mismatches. 

Reduced logistics costs 

Fewer returns directly translate to reduced logistics costs. When customers are more confident in their purchases, they are less likely to return items. 

This way, you can save your business money on shipping, handling, and processing fees. 

Increased customer confidence 

A size and fit advisor boosts customer confidence by providing an accurate representation of how clothing items will fit. 

Work to make your customers feel confident in their purchases. This way, they are less likely to return items due to uncertainty or regret. 

Learn more: 5 tips to enhance your women’s fashion online store 

Lower cart abandonment rates 

Your e-commerce store can reduce cart abandonment rates with a virtual try-on. This is because you are providing shoppers with a better understanding of the products they are considering. 

When people can visualize how clothes will look on them, the chances of completing a purchase are higher. 

Competitive advantage 

Offering a virtual fitting room can give your online store a competitive edge. This innovative feature can attract new customers, improve customer satisfaction, and ultimately increase sales. 

By providing a superior shopping experience, you can stand out your business from competitors. 

Learn more: Discover the current landscape of the fashion market and how to stay competitive 

Reduce your fashion retail online return cost with Audaces technology

A fit and advisor solution can minimize your fashion retail online return cost.

Sizebay 

Sizebay offers Size & Fit, an innovative size and fit advisor for e-commerce stores. 

It’s as simple as entering a few details to get the ideal recommendation. This boosts confidence in the customer selections and increases satisfaction. 

In addition, we are committed to working closely with you throughout the entire process. From initial implementation to performance analysis, our team will support you at every step. 

To discover how this solution can transform your business, check out the success story of BunniesJR. 

The Dutch children’s footwear brand reduced returns by 3x by offering an in-store experience online. 

Ready to take your e-commerce to the next level? Discover Sizebay solutions and schedule a demo now!

FAQ

Why track your fashion retail online return cost?

Tracking your fashion retail online return cost shows you how much money your business loses when people return clothes.

What exactly is fashion retail online return cost?

Fashion retail online return cost refers to the expense of returning an item to an online retailer. The retailer or the customer can bear this cost, depending on the store’s return policy.

How to reduce your online fashion retail return costs?

Work with high-quality products, improve product photos and descriptions, add a product review option, offer a detailed size chart, have a good virtual clothing try-on tool, and prioritize customer service.

about the author

Audaces
Audaces is a global reference in the development of innovative solutions for the fashion industry, integrating processes, people, and technology.

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