Online retailers face a return rate over 20%, compared to their ‘brick and mortar’ counterparts who have a 9% return rate. With such a significantly higher return rate, it’s no wonder that reducing returns in the eCommerce world is such a hot topic.
There is also a significant increase in costs associated with returned apparel. Clothing returns take approximately three times longer to inspect. This additional labor cost hits the eRetailer, as well as the order fulfillment warehouse. To further exacerbate the situation, apparel that is returned with marks or residue from the consumer trying the item on, is considered damaged and unsellable.
In an effort to combat apparel’s share of the $206 billion returns industry, eRetailers are leveraging advancements in AI technology. Finding innovative AI solutions to further personalize the online shopping experience for consumers can lower eRetailers returns rate, and strengthen their bottom line.
To learn more about how AI can help reduce your returns, download the White Paper – The Right Fit: How AI is Changing eCommerce Apparel Returns