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Transportation culture fuels returns. What can brands do?
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Transportation culture fuels returns. What can brands do?

“Dealing with the volume of returns caused by mass returns requires a nuanced understanding of individual customer behaviors and responses to return policies,” says ZigZag’s Gerrie. “While many repeat customers are valuable, loyal customers who contribute positively to a retailer’s bottom line, it is critical to identify those who negatively impact profits.”

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Amazon confirms that fashion trends won’t go anywhere

With a new mobile-only shopping platform, Amazon is tapping into carryout culture in what is widely seen as an attempt to compete with Shein and Temu. Sustainability advocates say this is a step in the wrong direction.

Amazon Transportation

Increasingly, businesses are turning to technology to encourage better behaviors: for example, using data to track return behaviors in real time and adapting their return policies to reward buyers with poor return history. return via benefits like free delivery. Luxury online retailer Mythersea has seen success with this method, using its own artificial intelligence technology to identify high-spending customers who buy frequently and return less to offer more favorable returns options. It saw a decline in its return rate in the first quarter of fiscal 2025.

“The goal is not to penalize customers but to guide them toward more intentional purchasing habits,” says Oscar Rundqvist, co-founder of returns technology company EcomID, which offers customers tailored fees. AI based on their spending and return habits (in collaboration with fashion brands and retailers including H&M Group, Asket and Björn Borg).

Sophisticated sizing tools, such as Fit Finder and Sizekick from Fit Analytics, also play a growing role in reducing yields, leveraging data and deep learning AI models to offer more accurate fit recommendations . “Most sizing tools ask for basic information like age, weight and height. Although this is a start, it is far from accurate because human bodies are diverse. Generic measurements and simple statistical models cannot fully account for different body shapes,” says Sizekick’s Oldeen. In January, Amazon Fashion launched a AI-powered sizing tool for brands selling on its platform to help their customers find better solutions.

However, some argue that the only real solution is for the industry to move away from trendy ranges that encourage carrying behaviors and instead produce items that can be worn across multiple seasons and occasions. “This is one of the big challenges facing the fashion industry; overconsumption is closely linked to the challenge of excess returns,” says Siobhán Géhin, retail strategy partner at Deloitte. “Fast fashion is a huge driver of returns. If fast fashion continues to grow as it has, the returns challenge will persist and grow. »

To change this, we need to rethink the fashion business model and the customer proposition, she continues, and it is therefore “certainly not a short-term solution”. Retailers, consumers and technology providers must work together to reshape their habits, prioritizing thoughtful purchases and reducing waste. If they succeed, a future where convenience and sustainability coexist might seem within their reach.

Comments, questions or feedback? Send us an email at [email protected].

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