Returns are a fact of life. They are going to happen, but some fashion ecommerce sites are experiencing 30-40% return rates. These returns rates could turn your start-up launch from initial success to a real financial challenge. This week, I’ll share a few tips to reduce online returns.

Like death and taxes, returns are unavoidable. They are a real business expense that should be planned for; however, online fashion returns have soared. Fashion ecommerce sites are experiencing 30-40% return rates. Returns can dramatically reduce your profits. If you are just launching your fashion line, high return rates could turn what looked like a successful launch into a difficult financial problem. In this blog, we'll explore some strategies that ecommerce fashion sites can implement to reduce the number of returns and improve their profitability.

Make return policy easy and clear:

It is important to have a trouble-free return policy. That policy is key to maintaining a positive customer relationship and creating customer loyalty. A clear, “no questions asked” return policy can build customer trust and take the risk out of any purchase. It  can even help build customer loyalty for additional purchases. 

Amazon is proof that an easy return policy works. As they make it ever more simple to return products, their customer base multiplies because people understand that there is very little risk in buying from the website. 

Approximately 67% of buyers check the return policy before purchasing, and 33% of repeat customers say they would not buy again if the return experience was difficult. 

A hassle-free return policy is a great sales tool. It reduces buyer’s remorse and takes the risk out of buying. Your challenge is to deliver a product your customers don’t want to return.

Provide accurate product information:

One of the most common reasons for returns is the discrepancy between the product description and the actual product received. Customers expect to receive what they see on the website, and any deviation from that can result in a return. 

To avoid this, ecommerce fashion sites must provide accurate and detailed product information, including high-quality product images from multiple angles, fabric details, sizing information, and care instructions. 

Highly styled product images can create unrealistic expectations. More simple, solutions, such as 360-degree mages of the product from all sides can help a customer know just what to expect.

This information will help customers make informed decisions and reduce the likelihood of returns due to incorrect product information.

Check you sizing charts:

Never underestimate the importance of a “great fit”. When the apparel fits right, it helps the customer look and feel good. Seventy per cent of returns occur because of poor fit or style.  To mitigate this, ecommerce fashion sites must have accurate sizing charts that are easy to find and understand. 

The sizing chart should provide detailed measurements for each size, including bust, waist, hips, and inseam, and be consistent across all products. Additionally, ecommerce fashion sites should encourage customers to measure themselves accurately before making a purchase to ensure they select the right size.

Encourage exchanges over returns:

There are many advantages to encouraging customers to choose an exchange over a refund. It enables you to retain the revenue and it can help keep the customer, build your relationship, and improve brand loyalty. Research shows that just a 5% increase in customer retention can improve profitability by 95%. 

A good strategy for encouraging returns is to offer coupons or bonuses when they opt for an exchange versus a refund. This rewards the customer and can help make the exchange more valuable. 

Reduce Delivery Time:

Delivery time can significantly impact customer satisfaction and the likelihood of returns. Customers expect to receive their products quickly, and any delay can lead to frustration and potentially a return. To mitigate this, ecommerce fashion sites should optimize their supply chain and shipping processes to reduce delivery time as much as possible. Additionally, ecommerce fashion sites should provide customers with real-time updates on their order status and shipping and tracking  information to reduce anxiety and uncertainty.

Get personal:

Personalization can help reduce returns by giving customers a more personalized shopping experience. By collecting data on customers’ preferences and purchase history, your eCommerce fashion site can provide product recommendations that are tailored to each customer’s individual tastes and needs. 

This can help customers feel a greater connection with your brand, make more informed purchasing decisions, and reduce the likelihood of returns.

Get the order right… the first time:

Over 20% of product returns are caused by the customer receiving the wrong item. That can be due to an error in the ordering process or in the fulfillment process.  It is important to check orders. By implementing automated fulfillment systems that keep track of orders as they are selected, packed, and shipped simple errors can be eliminated.

This can reduce mistakes and the inevitable returns. It also organizes a more efficient operation. No more paper orders or writing things down repetitively. Everything is organized and makes reporting and tax documentation easy.  Investing in a dedicated automated system can generate huge cost savings over the years.

Simplify order changes or cancellations:

It is always best to keep your product selection and shopping cart page as simple as possible. Many consumers only discovered online shopping during the pandemic and are still not proficient with complex and confusing product pages. It is very important that instantly after a purchase a buyer receives a thank you email from you. That email should give them an easy way to review, change, or cancel the order if something is not right. This can eliminate costly shipping, save time,  and the expense of a return.  

Consider an interactive Try-On Tool:

There are many interactive ways to measure a person, suggest the right size for their body, and show them what they would look like wearing the garment. An example would be a system like YourFit that can be integrated into your website. These try-on tools can allow a person to virtually try on your product, get measured, and receive  size and fit suggestions before the purchase. 

Simply Google “Virtual Try-On Tool” and you can see there are several suppliers that even specialize in the various different clothing items like pants, dresses, blouses, and shoes.  These systems can help significantly cut expenses due to returns. It enhances the customer’s experience by allowing the customer to try-on the garment, and order it in a size that is most likely to fit.

Returns may be inevitable, but they are manageable. If you are choosing an online ecommerce business model  you must realize that online returns are normally 3 times higher than retail returns. By proactively addressing the challenge of returns with creativity and an innovative strategy, you can keep costs predictable and within your budget. You may even be able to reduce returns, boost brand loyalty, and help improve the success of your fashion start-up launch.

Stuck on product Production? At V.Mora we can help you through the entire production process from designing, to sourcing and so on through our Production Development services. If you are in need of the following Development and Production services: 

• Sourcing 

• Technical sketches   

• Pattern Making

• Prototype making 

• Sample Making

• Fittings 

• Digitizing and Grading

• Marker Making

• Manufacturing

Please contact us at: vmorainquiry@vmora.com