The Problem
Online clothing returns are costing retailers and the environment.
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the number of units a retailer would need to sell to recover the cost of a single return
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tonnes of online apparel returns landfilled in 2020
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average return rate of online apparel orders
Online fashion retailers spend lots of money on free returns to satisfy shoppers. Unfortunately, free returns don’t address poor fit, which causes 70% of all online clothing returns. Because returns are so costly, some retailers default to landfilling their returns. With a surge in online shopping, fuel costs, and environmental consciousness, fashion retailers need to reduce returns without jeopardizing customer retention or the environment.
Market Opportunity
Free returns are phasing out.
Retailers are gradually phasing out free returns due to high costs. Additionally, California’s SB707 legislation is pressuring retailers to seek sustainable solutions that also boost sales. As more shoppers demand retailers implement sustainable practices, we can anticipate more legislation regulating apparel production and consumption (see New York Fashion Act).
$4.62B
US online women’s premium
clothing returns market
$1.89B
Retailers targeting
Millenial/Gen-Z
$794M
SOM
The Solution