Retailers Can Solve Their Returns Problem – And The Answer Lies In Existing Data

Returned items have become a painful problem for retailers, but many don't yet know how to tackle it. Return rates in fashion and clothing, for example, range from 40 per cent to an eye-watering 70 per cent, according to 2022 research from AlixPartners. This costs retailers billions and has destroyed profits for many.

Rocketing return rates are a symptom of the shift to online shopping, which moves the changing room from store to bedroom. Customers now routinely order multiple sizes, colours and fits online, keep one item and return the rest. Online shopping may allow shoppers to capitalise on recent trends, such as wardrobing – wearing an item once then returning it – and staging, whereby an individual posts a picture wearing an item on social media before returning it.