Black Friday is projected to cost UK retailers 180 million pounds from consumers returning goods bought in the 24-hour flash sale, according to retail intelligence company Clear Returns.
“The research has revealed that UK retailers stand to lose 130 million pounds from handling returns of items bought on Black Friday, while costs relating to lost margins, cleaning, storing, oversupply of stock and the lost value of future custom from the shopper could add an additional 50 million pounds to the returns bill.” (Danielle Wightman-Stone, FashionUnited)
What is more, return rates for fashion e-commerce companies are a lot higher than in-store.
“In my experience at the higher-end of the price range, an average of 40% of what is purchased is returned. Our return rate at Nicole Miller | Online Store is 40%. We see a lot of customers buy a style in two sizes and return one of the sizes. Return rates are much higher for apparel and shoes than accessories because accessories don’t have the sizing concern.” (Andrea Marron, VP of Digital at Nicole Miller)
This year’s Black Friday is expected to be the biggest yet in the UK, with bargain shoppers expected to spend 1.07 billion pounds online, up from 810 million pounds last year, according to Experian-IMRG. It is predicted that November 27 will be the first time that internet sales in the UK surpass 1 billion pounds in a single day. (Danielle Wightman-Stone, FashionUnited)
There is no secret that fashion e commerce is facing huge returns, especially during the sales period. The biggest reason for those returns is the misfit of the purchased garments and the return rate could go really high, depending on the online shop. This causes huge losses for fashion business. However, technologies like EasySize are changing and solving some of the biggest problems that e commerce managers face. With EasySize, retailers are able to decrease returns by 35–40% and provide the simplest size & fit solution in the market to their customers. — concludes Gulnaz Khusainova, CEO & Founder of EasySize.
Why reducing the return rate for you fashion business can be critical?
“A scary but interesting stat for you is that 80% of first time customer that experience a return actually never shop with that website again.” (Alexander Broom-Roden, Marketing Co-Ordinator at TSB Supply Chain)