SOLVING FASHIONS PRODUCT RETURNS
The British Fashion Council’s (BFC) Institute of Positive Fashion (IPF), DHL and Roland Berger this month launched a report on the environmental impact of returns in the fashion industry, with a suggested recommendation roll out. This research comes at a critical time, as the returns process in the UK generated 750,000 tonnes of CO2 emissions in 2022 and some 23 million garments sent to landfill or incinerated. This represents 75% of the approx 3 percent of all returns that can not be resold.
Survey findings:
As part of the report, a consumer survey was conducted by the IPF, Roland Berger, and Dynata to better understand UK consumers’ online fashion purchasing and returns behaviour. The survey highlighted a number of key points, including the following:
Incorrect sizing or fit (93%) and product quality not meeting expectations (81%) were the top returns reasons
For 56% of shoppers, a returns charge is the measure most likely to prevent returns
The report presents two target outcomes to reach the target state of minimised returns:
Product returns are mitigated at the point of sale:
Ultimately, the report found that the onus is on retailers to help consumers make the right choice, the first time, every time. Fashion businesses need to be more thoughtful about the products they are selling so that they are producing collections customers will want to keep. They should also be enabling shoppers to buy correctly by leveraging data and digital solutions. Investment in sizing calculators will become an industry norm and digital avatars an integral part of the future for fashion retailers. Roland Berger has calculated that large retailers with approximately 70% of sales coming from their website, could reduce cost of returns handling by 20-40% with the introduction of sizing calculators and avatars.
The report suggests that free returns will become a thing of the past. Using an environmental message to prevent consumers returning goods currently holds no sway; some 56% of online shoppers surveyed indicated a returns charge or levy as the measure most likely to prevent them returning goods. The trade-off could be losing customers – but as more companies adopt charges it will become an industry norm.
Product returns are handled more efficiently
Retailers need to look closely at reverse logistics to reduce costs and meet CO2 emission targets. This involves investing into technologies and processes such as digital product passports and automated warehousing, so that businesses can make returns operations more efficient, cost-effective, and less carbon intensive.One solution to product returns is using The ORDRE Groups ORB360 imaging.
- 360° imagery reduces return rates by 22%
- Providing customers with a realistic view of the product increases sales and conversion rates
- Customers have a better realisation of what they are buying, and are more likely to be satisfied with their purchase
ORB360° photography allows customers to see all aspects of a product including any intricate details that might be missed with traditional photography. By providing customers with a complete view of products, businesses can better showcase their products, provide an interactive 360˚ view and allow zoom functionality on specific details. Adding moving imagery to e-commerce sites creates a more immersive and interactive shopping experience for customers and retailers. The super zoom tool with high-definition zoom feature from the ORB imagery allows consumers the opportunity to explore every inch of the garment or product. In a world where returns need to be reduced, fashion brands must utilise the most advanced e-commerce photography.
Another solution to product returns is using technologies such as The ORDRE Groups Authentique App which make returns operations more efficient, cost-effective, and less carbon intensive by tracing the garment from the point of origin. At the manufacturing stage the product is Authenticated and its digital twin and item number is placed on the blockchain.