In the world of online retail, 39% is at stake – that is a substantial portion of an item's price lost in the returns process (Optoro, 2023). While the industry wrestles with the familiar consequences of online returns – from environmental implications to customer experiences – a quieter yet influential player in this narrative is the impact on your brand's bottom line.

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The fashion industry’s sizing problem is huge

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As a notorious driver of clothing waste, returns casts a long shadow on sustainability efforts. It's a narrative the fashion industry is all too familiar with and navigating the landscape of sizing issues in particular, uncovers the complexities of environmental and financial implications. The influence of vanity sizing has reshaped the very essence of what clothing labels signify. This trend, often dubbed "insanity sizing," operates to make shoppers feel slimmer by adjusting metrics, contributing to the perplexing reality that a woman's size 12 in 1958 is now equivalent to a size 6.

With $240 billion spent annually on online shopping, an estimated 40% of these purchases face the journey of returns, primarily fuelled by clothing sizing issues. In the UK alone, the disheartening statistics from 2022 stand tall – 23 million clothes were sent to landfill or incinerated (British Fashion Council). The colossal waste generated by this cycle poses a significant challenge for consumers and retailers, who grapple with the substantial costs of covering seemingly "free" returns.

Insights from a Narvar report, highlighted by the BBC, estimate that retailers bear a significant burden of about $33 (£27) per return. This figure includes expenses for postage, packaging, the depreciation of an item's value, labour, and the implicit cost of missed sales windows. One could argue, that there is no such thing as a free return as the annual expense of the returns process for retailers looms large at around £7 billion.

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Why are consumers returning clothing?

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Consumers return clothes for various reasons, keeping online retailers on their toes. Firstly, there's the feel and quality - sometimes what looked great on the screen just doesn't cut it in person. Another popular reason is the 'Item didn't fit' scenario. A survey by Coresight Research showed that of 100 brands' returns, over 50% were due to size.

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How consumers have been solving the poor fit problem

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Consumers, faced with the ongoing challenge of poor fit in online shopping, have devised their solutions.

One common strategy is 'Bracket buying,' where shoppers purchase a product in multiple sizes or variations, intending to return the ones that don't fit. This allows them to try different options at home without the need for multiple transactions. While similar to wardrobing, bracket buyers usually intend to keep at least one of the items they initially purchased. 

Another approach is 'Wardrobing,' where shoppers buy clothes for a specific event, wear them, and then return them for a full refund. This practice, also known as “wear and return” or “free renting,” has several impacts, including products being unsuitable for resale at full price due to damage or seasonality, trend-driven items losing their appeal once returned, and non-wardrobing customers missing out on the chance to purchase the product, resulting in potential lost sales for brands.

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Are return fees enough to recoup the cost of returns?

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The imposition of return fees by retailers represents a delicate balance between profit motives and the persisting challenge of excessive returns in the e-commerce sector. Approximately 40% of online retailers have implemented some form of return fee, covering expenses related to shipping the item back to a warehouse, repackaging, or disposal. 

While some retailers charge a fee irrespective of whether the return occurs in-store or online, the majority permit customers to return items purchased online to a physical store without additional charges. However, the effectiveness of return fees in curbing excessive returns remains questionable. Despite serving as a deterrent, these fees often fall short of addressing the fundamental issues that lead to returns in the first place.

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Bridging the Sizing Gap

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While return fees contribute to consumer awareness during the return process, they fall short in dissuading returns triggered by sizing issues, which constitute a substantial 60% of all returns. In reshaping the sizing landscape, the objective is not to burden consumers but to revolutionise their shopping habits, which in turn minimises costs while enhancing conversion rates and revenue. 

Brands must proactively address sizing problems, employing technological solutions to mitigate the impact of returns on consumers and themselves. At efitter, our commitment to transforming the shopping experience is evident with our Sizing Solution, which recommends accurate sizes based on users' previous purchases, eliminating friction in the shopping process. 

By leveraging data, we not only offer precise size recommendations but also facilitate the reputation of a brand that prioritises consumer satisfaction. Partner with efitter to revolutionise your brand's online shopping approach, reducing returns and delivering personalised shopping experiences. Click to book a demo with our Sales team.