TheMarketingblog

E-commerce : 20-40% of all clothing purchased online is returned – Srishti Dhawan, Pragma

Fit to bust  … It is estimated that approximately 20-40% of all clothing purchased online is returned, and these numbers vary drastically across categories. While t-shirts and menswear get a low rate of return, dresses can account for 60% of the returns.

Initially retailers focussed on making their delivery models more flexible, encouraging shoppers to buy, try and return. The problem with this solution is that no matter how easy the retailer return/delivery policy is, customers still need to invest time and effort in making that return, and often end up in a physical store for the final purchase. This is evident in the rise of click and collect, particularly in fashion.

Recently, several VC-backed technology start-ups have set their eyes on solving the fit problem. Whilst some start-ups such as Truefit have developed algorithms that analyse fit data and help customers select the right size, others such as Metail and Fits.me have designed 3D virtual fitting rooms. A recent research by Fits.me shows that shoppers who use their online fit solutions end up with a 7% higher average basket value than those who don’t.

However, the current technology is flawed. In most cases, it puts the onus on the customer – and the amount of information required can vary from asking for customer measurements to uploading photographs, leading to privacy implications and concerns on behalf of the customer. Another challenge is the fragmented implementation of these solutions. Not all fashion retailers opt for the same solution, and as a result customers cannot mix and match outfits across different websites. Finally, be it fit algorithms or virtual dressing rooms, the technology is costly for retailers to implement.

Increase online sales

To increase online sales, retailers can benefit from small but necessary changes to their website. We have worked with online retailers to optimise their websites to enhance checkout rates and increase transactions. For example, the inclusion of customer reviews, a live catwalk, and detailed technical product information.

Only time will tell what the future holds for online shopping. But one thing is for certain, customers want a solution that lets them buy now, wear now.  Given the golden rule of retail is “the customer is always right”, fit companies need to move away from gimmicky solutions and tailor their proposition towards the online shopper.

Srishti Dhawan

Pragma’s retail services