Reduce Returns and Boost Sustainability in Fashion E-Commerce
The rise of online shopping has transformed consumer behaviour, offering unparalleled convenience. Yet for clothing retailers, it comes with a costly and unsustainable side effect: high return rates.
When shopping for clothes online, customers face a key obstacle, they can’t try items on before buying. As a result, many resort to “bracketing,” ordering multiple sizes or styles, and returning the ones that don’t fit. This behaviour is driven by inconsistencies in sizing across brands and the limitations of traditional size charts, which are often outdated and inaccurate.
The repercussions of this go far beyond logistical headaches for retailers. High return rates have massive environmental, financial, and operational consequences leading to excess waste, unnecessary carbon emissions, and overproduction.
The Environmental Impact of Returns
1. Plastic Waste: More Than You Think
Plastic packaging is omnipresent in e-commerce, particularly in the fashion sector. Each order is typically packed in an outer plastic bag, with individual garments encased in additional plastic for protection. While this safeguards clothing during transit, it also creates an enormous waste problem.
- Packaging Data: The UK alone produces 2.2 million tonnes of plastic packaging annually, with only 44% of it recycled. (UK Parliament Report)
- Example Case: A retailer with 200,000 orders per year could see 50,000 returned items purely due to sizing issues. This results in the production and waste of over 32,500 additional plastic bags annually.
2. Transportation: Excess Miles, Excess Emissions
Returns require garments to be shipped multiple times, first to the customer, then back to the warehouse, and often redistributed to other locations or stored for clearance sales. Each leg of this journey adds to the fashion industry’s already considerable carbon footprint.
- Industry-Wide Impact: E-commerce returns generate 16 million tonnes of CO2 annually across the globe, equivalent to the yearly emissions of 3 million cars. (Statista)
- Specific Case: For our example retailer, returns due to sizing issues could result in 7,200 kg of CO2 emissions from transport alone.
3. Overproduction: Wasted Inventory, Wasted Resources
Sizing inconsistencies also force retailers to overproduce, manufacturing more garments than necessary to meet the demands of uncertain customers. Unsold inventory often ends up in landfills or is incinerated, contributing to significant environmental harm.
Global Statistics: The fashion industry overproduces by 30-40% annually, resulting in 92 million tonnes of textile waste each year. (Ellen MacArthur Foundation)
- Retailer Example: Carrying 3% more inventory to account for sizing issues contributes an additional 26,000 kg of CO2 annually, based on cotton garments alone. For polyester, this figure more than doubles.
The Financial Cost of Returns
Returns don’t just harm the environment – they’re incredibly costly for retailers. The average return costs £20-£30 per item when accounting for shipping, handling, repackaging, and restocking. For a mid-sized retailer with 50,000 annual returns, this translates to £1-1.5 million in additional costs per year.
AI-Powered Size Recommendations: The Solution Retailers Need
The outdated, one-size-fits-all size chart lies at the heart of these challenges. Prime AI has developed an intelligent size recommendation tool that addresses these issues at their core.
Here’s how it works:
- Customer Biometrics: Analyses shopper measurements for accurate, personalised size suggestions.
- Purchase History: Learns from customers’ previous orders to refine recommendations.
- Brand-Specific Sizing: Considers each brand’s unique sizing characteristics for greater precision.
The result? Customers are far more likely to receive garments that fit perfectly the first time, reducing the need for bracketing and driving significant operational savings.
The Sustainability Impact of AI Size Tools
By adopting AI-driven size recommendations, retailers can dramatically reduce their environmental footprint:
- Plastic Waste: Significant reductions in plastic bag usage. For example, eliminating bracketing could save 32,500 plastic bags annually for a mid-sized retailer.
- Transportation Emissions: Fewer returns mean fewer shipments, cutting CO2 emissions from logistics by 7,200 kg per year.
- Overproduction: More accurate sizing reduces overstock, eliminating 26,000 kg of CO2 emissions from unnecessary garment production.
In total, this adds up to an annual reduction of 28,000 kg of CO2 emissions for a £10 million turnover retailer, the equivalent of running an average household for eight years.
Why Sustainability Matters for Retailers
Sustainability isn’t just an ethical consideration—it’s a business imperative. Today’s consumers demand it:
- Consumer Sentiment: Over 73% of shoppers are willing to pay more for brands with sustainable practices. (Capgemini Research Institute)
- Brand Loyalty: Retailers embracing sustainability see a 30% increase in customer loyalty. (McKinsey)
- Reduced Returns: Retailers implementing sustainable practices see a 20-40% reduction in return rates, saving costs while enhancing customer satisfaction.
Ready to Transform Your Business?
Prime AI’s size recommendation tool doesn’t just help your customers, it helps the planet. By reducing returns, minimising waste, and cutting emissions, you can improve your bottom line while contributing to a greener future.
Let’s work together to make a difference.
- Request a demonstration here to see how our tools can transform your business.
- Contact our team here to learn more about our innovative solutions.
Together, we can create a better shopping experience for customers while protecting the planet.
Speak to us today
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