![]() ![]() This also offers benefits such as access to better shipping rates and the ability to scale as required without significant investment. A 3PL provider will process, restock or dispose of goods returned to their sorting facility depending on your policies, which is perfect for retailers that lack the space, time or resources to maintain a timely and error-free returns process. According to Optoro research, this process costs retailers between $2.75 to $4 per item.Īlternatively, returning an item through a third-party logistics (3PL) provider typically costs retailers the shipping fee plus a processing cost of $1 to $3.50 per item according to Deliverr, saving retailers up to 75% of the cost. Even if the item arrives back at the warehouse in pristine condition, is processed quickly and put back on sale with plenty of time before the season ends, restocking, repackaging and redistributing still adds to the retailer’s mounting expenses. Before items can go back on sale, they must first be checked to ensure they’re clean and undamaged. Retailers require warehouse space to hold the mountains of stock that customers ship back. With a new fashion season coming every three months, items shipped back at the very end of a 30-day return window leaves little time to process, restock and resell returned goods before the next collection hits the racks. Apparel is particularly vulnerable to loss of value given the short window in which items stay in style. The reality is, Optoro estimates, retailers face losing $33 for every $50 worth of goods a customer ships back and with each day that passes, the harder it is for retailers to recoup their costs. Yet, research by Gartner found that less than half of returns are resold at full-price, despite only 20% being defective according to Optoro. They’ve tried on the items – just like they would have had they shopped in a physical store – and shipped back those they didn’t like to be sold to the next customer. As reported by Vogue Business, almost 15% of returned online purchases from multi-brand retailers were attributed to bracketing.įor consumers, it might not seem that returns are all that big of a deal. Consumers aren’t intending to cause harm to the brands they shop with, but they are. Statista data shows that 48% of shoppers bracket their purchases when sizing is unclear, 36% when they’re unable to try products in-store, 26% when they’re unfamiliar with a brand and 23% because their weight has changed. One of the most common forms of return fraud is bracketing, where consumers purchase items that they have no intention of keeping - a practice that 63% of consumers regularly resort to when shopping online, according to Navar. ![]() Return fraud doesn’t just include returning stolen or counterfeit goods. While the majority of these returns were legitimate, an estimated 10.6% were deemed fraudulent, costing online retailers $23.2bn. With this spike in sales comes a surge in unwanted purchases, but exactly how much do apparel returns cost the industry? Well, NRF estimates that $218bn (20.8%) worth of goods bought online were returned in 2021. NRF figures show that online sales surpassed $1 trillion in the United States in 2021, a milestone that pre-pandemic trends suggested wouldn’t occur until 2024. □ Discover the full benefits of YourFit and cut the cost of your returns process Customers know what size they need and what to expect BEFORE they purchase, saving them time otherwise wasted trying on and shipping back items they don’t like, and retailers on the astronomical cost of returns. YourFit offers shoppers the ability to effortlessly scan themselves, receive tailored size guidance and view items on their own body through a unique combination of AI-calculated size recommendations and a photorealistic virtual try-on. If only there was a way to provide customers with their very own at-home fitting room without resorting to free shipping and lenient policies… such as YourFit, 3DLOOK’s complete virtual sizing platform. Essentially, these customers are making the most of permissive returns policies to transform their bedrooms into pop-up fitting rooms - entirely at the retailer’s expense. Instead of searching through sizing charts to determine their correct size, half purchase multiple variants of the same product knowing they can simply return those that don’t fit. With 86% of consumers stating that free returns strengthen their loyalty to a brand and keep them coming back, according to Klarna, lenient return policies have become an industry standard… and consumers are taking full advantage. ![]()
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