The return rate in the United States has exceeded 20%! Online clothing retailers have new strategies

Recently, e-commerce service platform Nosto released the latest research on American consumer returns.

Data shows that the amount of e-commerce returns in the United States reached 671 billion US dollars in 2021, and the average return rate rose to 20.8%.

The increase in returns has led to an increase in warehousing expenses, and some online fashion brands have also seen a decrease in profits.

How to reduce the return rate? Nosto found through research that 61% of consumers said that if retailers display photos and videos of buyer shows in their stores, they will reduce returns.

Generally, clothing retailers will display exquisite product display pictures in stores, but if the clothing models are replaced with the consumers' own images, consumers can more intuitively understand whether the products are suitable for them. Some clothing retailers have taken advantage of this consumer psychology and used technology in stores to directly generate consumers' try-on effects. At the same time, they also encourage consumers to share try-on photos on Instagram and product review pages, and share their own sizes in product reviews. This allows other consumers to refer to it, thereby reducing the return rate.

Another study conducted by Stackla last year found that visual UGC platforms make consumers very willing to let fashion retailers use their post-purchase selfies , with 58% of consumers allowing brands to use their post-purchase selfies as part of store marketing.

In addition, 49% of consumers agree that stores should charge customers for returns or stop free returns . Zara recently adjusted its return policy for more than 30 markets around the world. For goods purchased online, customers must pay 1.95 euros to return them online. At the same time, Boohoo is also following Zara's return policy. This return policy allows consumers to carefully consider whether they will keep the goods before placing an order, thereby reducing the return rate.

In addition to the above measures, retailers must also ensure that product information is sufficiently detailed and accurate, and that the products are not damaged before shipment, ensuring that the products are foolproof, and only on the basis of improving consumers' shopping experience can the return rate be reduced.

US e-commerce market

Return rate