Shoppers Return to Their Spending Habits
In the ever-evolving world of online fashion retail, reducing returns has become a top priority for businesses selling on marketplaces. Julia Tsygankova, a manager of large sellers on marketplaces, advises accurately specifying the size chart as a key strategy.
However, responses from some marketplaces, such as Wildberries and "Yandex Market", were not forthcoming when requests for comment were made.
One innovative approach being employed by fashion businesses is the use of AI-powered virtual try-ons and "try and buy" features. These tools, offered by startups and brands, allow customers to visualise how items might look and fit before purchasing, thereby significantly lowering return rates. Mumbai-based Knot found that their partner brands experienced about 20% returns on direct-to-consumer websites but less than 1% returns for offline purchases. By replicating this online, customers make more decisive purchases with lower returns.
Clear and easily accessible return policies are another crucial element. Fashion e-commerce sites provide clear, prominently displayed policies to set proper expectations upfront, reducing frustration and building trust. Policies often include clear deadlines to ensure timely returns.
Automating the returns process also improves operational efficiency and customer trust. Systems create automatic workflows for handling return scenarios, update inventory automatically, and notify customers throughout the return stages. This helps reduce errors and enhances customer satisfaction, potentially lowering future returns by improving the overall customer experience.
Optimized product presentation and filters are essential for improving product discovery. Using sophisticated on-site filters and search options helps customers find products that meet their specific needs and preferences quickly, reducing impulse buys and mismatches leading to fewer returns.
Some businesses create “open box” or “gently used” product sections with no-return policies to liquidate returned stock effectively and reduce the impact of returns on profitability.
While these strategies help reduce returns, challenges remain, particularly regarding the added logistics costs of try-and-buy and virtual features. However, the combination of technology-enabled fit solutions, clear communication, and efficient operations forms the core approach used by fashion businesses to reduce clothing and footwear returns on online marketplaces.
Surveyed marketplaces did not disclose their share of fashion returns, with Ozon attributing a high share to the nature of the product (clothing and footwear). Good product photography is emphasised as important by online platforms, with Lamoda focusing on photographing models wearing items that match.
Reducing delivery times is believed to be a key strategy for lowering the share of product returns. Ozon noted that accelerating order fulfillment from four to two days can increase sales by an average of 2.3 times. The longer the delivery time, the lower the purchase rate, according to Baon clothing network president Ilya Yaroshenko.
As the marketplace law potentially approaches enforcement as early as October 2026, these strategies will undoubtedly play a significant role in shaping the future of online fashion retail.
Fashion businesses are also adopting a lifestyle approach, integrating fashion-and-beauty products, technology, and shopping experiences to encourage customers to make more informed and confident purchases, which may further lower return rates. Additionally, the implementation of technology, such as AI-powered virtual try-ons and try-and-buy features, not only improves customer satisfaction but also helps reduce the logistics costs associated with traditional return processes.
