The largest and most popular ecommerce retailers are renowned for their exceptional customer service. Companies like Amazon have significantly raised the standards for customer expectations. For small to mid-sized ecommerce brands, particularly in the apparel sector, this means they have to offer as close to the same exceptional customer service and flexibility to succeed, while not breaking the bank trying to keep up.
One of the more challenging trends for ecommerce fashion brands is ordering many items of varying sizes and colors with the intention of just keeping the one that fits best and sending back the rest. This is called bracketing and it has become a prevalent shopping behavior.
For Shopify store owners, grasping the intricacies of bracketing and its effect on return statistics is essential. Keep reading to stay up to beat on the latest data, expert insights, and effective strategies to manage apparel returns on Shopify. We’ll cover key statistics and trends, offering valuable information to help you navigate and optimize your return processes to deliver competitive and customer-friendly offerings in your Shopify store.
Are you ready? Here we go!
Understanding Bracketing in ecommerce
Bracketing is a tactic where customers purchase various sizes, colors, or styles of a product to try at home, intending to return the ones that don’t fit their preferences. This approach helps shoppers feel more confident in their purchases, especially in the apparel industry where sizing and fit can be unpredictable and subjective. Recognizing the widespread use of bracketing allows retailers to better manage its effects on their inventory and return processes.
Reasons Why Customers Bracket
Customers bracket for several reasons:
- Size Uncertainty: Different brands often have inconsistent sizing.
- Color Variations: Items may appear different online compared to in-person.
- Style and Fit: Customers often try multiple styles to find the one that fits them best.
Impact of Bracketing on ecommerce Logistics and Cost
While bracketing enhances the customer shopping experience, it poses significant challenges for ecommerce logistics:
- Increased Return Rates: Higher volume of returns necessitates efficient processing systems.
- Operational Costs: Managing returns involves restocking, quality checks, and repackaging, all of which incur costs.
- Environmental Impact: Returns increase carbon emissions due to the added transportation required.
Understanding bracketing and its implications is crucial for Shopify store owners to develop effective strategies for managing apparel returns.
2024 Statistics: Analyzing the Current Landscape
Understanding the latest statistics on apparel returns is essential for Shopify store owners aiming to optimize their operations and customer satisfaction. Recent studies have shed light on the current trends and challenges in the industry, providing valuable insights into the behavior of online shoppers and the impact on return rates. By examining this data, retailers can better anticipate and address the factors driving returns, ultimately improving their overall efficiency and profitability.
Overview of the Latest Statistics on Apparel Returns on Shopify
In 2024, the apparel return rate on Shopify has reached an all-time high. According to a comprehensive study by Ecommerce Times, the average return rate for apparel on Shopify is around 30%, with some categories experiencing even higher rates. This rise highlights the critical need for effective return management strategies for online retailers.
Comparison with Previous Years’ Data
Comparing this data to previous years reveals a significant upward trend. In 2020, the average return rate was approximately 20%. This rise can be attributed to several factors, including the rapid growth of online shopping, the heightened expectation for hassle-free returns, and the impact of the COVID-19 pandemic, which accelerated the shift to ecommerce. A study by Statista highlights that the convenience of online shopping has led to more liberal return policies, which, while beneficial for customer satisfaction, have also contributed to higher return rates.
Key Trends for 2024
The data clearly indicates a rising trend in apparel return rates, driven by evolving consumer behaviors and increasing expectations for convenience. For Shopify store owners, this means acknowledging the critical role that return management plays in their business model.
By staying informed about the latest statistics and understanding the underlying causes of returns, retailers can develop more effective strategies to mitigate these challenges. This involves not only improving the accuracy of product descriptions and sizing information but also leveraging technology to enhance the overall shopping experience.
Consumer Behavior Insights
Recent research offers valuable insights into consumer behavior, particularly in relation to return rates in the apparel sector. A study by the CNBC found that 96% of shoppers will return items if the process is convenient and hassle-free. This highlights the importance of a streamlined return process for customer retention and satisfaction.
What’s more, a related report by Optoro indicates that shoppers who engage in bracketing – purchasing multiple sizes or variations with the intention of returning the unsuitable ones – are often among the highest value customers, as they tend to shop more frequently and spend more per order.
Reasons for Elevated Return Rates in Apparel
Multiple elements contribute to the high return rates in the apparel industry:
- Variable Sizing: One of the primary challenges in the apparel industry is the inconsistency in sizing across different brands and even within individual brands. This inconsistency leads consumers to order multiple sizes to ensure a proper fit. A study by First Insight revealed that 56% of online shoppers reported that inconsistent sizing was a primary reason for their returns.
- Product Expectations: Discrepancies between online product images/descriptions and the actual items received also drive returns. High-quality images and accurate descriptions are crucial, but variations in color, fabric texture, and fit can still lead to customer dissatisfaction.
- Customer Preferences: The subjective nature of fashion means that personal preferences for style, fit, and comfort vary widely among consumers. This subjectivity often results in returns when items don’t meet individual expectations.
Psychological Triggers That Lead to Bracketing
Understanding the psychology behind bracketing can help retailers address this behavior more effectively:
- Risk Aversion: Consumers are naturally risk-averse, and purchasing clothing online without trying it on first can feel risky. By ordering multiple options, they reduce the likelihood of complete dissatisfaction.
- Instant Gratification: The desire for immediate satisfaction drives consumers to make bulk purchases, knowing they can return what doesn’t work. This behavior is reinforced by the convenience of modern return policies. According to a survey by UPS, 73% of online shoppers state that the ease of returns is a key factor in their decision to purchase from a retailer.
Understanding consumer behavior is essential for managing high return rates in the apparel industry. Factors such as inconsistent sizing, unmet product expectations, and personal preferences significantly impact return rates. And, psychological triggers like risk aversion and the need for instant gratification play a crucial role in bracketing behavior.
For Shopify store owners, leveraging these insights can lead to better strategies for reducing returns, such as improving product descriptions, standardizing sizing, and enhancing the overall customer experience.
Financial Impact on Retailers
Returns are not just logistical issues; they have significant financial implications. The average cost to process a return can range from $10 to $20, factoring in shipping, restocking, and potential loss in product value, with retail returns averaging 24% across the board, according to data from Coresight.
How Returns Affect Overall Profitability
High return rates can erode profit margins. For every returned item, retailers must bear the costs of shipping, handling, and potential markdowns if the returned product cannot be resold at full price.
Technological Solutions and Innovations
Several tools can help Shopify store owners manage returns more effectively:
- Return Management Software: Platforms like ReadyCloud and our premier returns software plugin, ReadyReturns, streamline the return process for customers and instantly improve visibility for internal operations.
- AI-Powered Size Suggestions: Systems that recommend sizes by analyzing customer data and past purchase history.
- Virtual Try On: Most companies are using or building software that allows people to virtually try on their clothes or product, like glasses, jewelry or other accessories.
Best Practices for Managing Returns
Efficient return management is essential for ensuring customer satisfaction and enhancing operational efficiency. Implementing the following best practices can help reduce bracketing and streamline the return process, ultimately benefiting your Shopify store’s bottom line.
Enhanced Product Descriptions:
- Detailed Size Charts: Provide comprehensive size charts that include measurements for each size and guidance on how to measure yourself accurately. Include information on how the item fits (e.g., slim fit, relaxed fit).
- Customer Reviews: Urge customers to provide reviews with details on sizing and fit. This peer feedback can be invaluable for prospective buyers.
- High-Quality Images: Showcase multiple high-resolution images from different angles, including close-ups of the fabric and intricate details. Consider including videos showing the product in motion.
Virtual Try-Ons:
- Utilize augmented reality (AR) tools to enable customers to virtually try on items. This technology can significantly reduce the need for bracketing by giving customers a better sense of how the item will look and fit.
Size Recommendations:
- Leverage AI-driven solutions to provide personalized size recommendations based on a customer’s purchase history, body measurements, and preferences. This technology can help reduce sizing issues and the likelihood of returns.
- ReadyReturns offers tools that can analyze purchase history and provide tailored size recommendations, ensuring customers are more likely to receive items that fit perfectly the first time.
Significance of Clear Return Policies and Communication
Clear and transparent return policies are crucial for building trust and ensuring a positive shopping experience. Here are some tips for creating return policies that keep customers coming back to your store:
- Visibility: Ensure your return policy is easy to find on your website, ideally linked from product pages, the footer, and during the checkout process.
- Simplicity: Use straightforward language to explain the return process, timeframes, and any conditions or exclusions.
- Consistency: Ensure your return policy is consistently communicated across all customer touchpoints, including emails, social media, and customer service interactions.
ReadyReturns simplifies policy management by allowing you to set rules for automatic approval of returns or exchanges, ensuring customers are well-informed and confident in their purchase decisions.
Tips on Optimizing the Returns Process
Want smoother returns? Then you need an efficient system for them like ReadyReturns! Why? Because here’s how it can help your business increase productivity and improve the customer experience after the “BUY” button.
Streamlined Logistics:
- Use automated systems to handle returns efficiently. Automated return processes can reduce the time and cost associated with manual handling.
- ReadyReturns enables customers to initiate returns online from your Shopify storefront, print their own return shipping labels, and track their return status, making the process smooth and efficient.
Efficient Restocking:
- Ensure that returned items are quickly processed, inspected, and restocked. This minimizes the time products spend out of inventory and maximizes their availability for resale.
- ReadyReturns provides visibility and reporting into what products are coming back and why, helping you streamline restocking procedures and manage inventory more effectively.
Customer Feedback:
- Gather detailed feedback from customers on why they are returning items. This information can help identify patterns and pinpoint areas for improvement in product quality, descriptions, and customer service.
- ReadyReturns includes tools for gathering and analyzing return data, providing insights that can drive improvements and reduce future returns.
Shopify store owners can reduce the incidence of bracketing, enhance customer satisfaction, and optimize their return processes by following these guidelines. ReadyReturns offers a comprehensive solution that incorporates these strategies, allowing you to manage returns efficiently and maintain a competitive edge.
With features like automatic approval rules, customer-generated return shipping labels, and detailed reporting, ReadyReturns makes it easy to implement and benefit from these best practices in just a few minutes.
The Future of Returns Management
As online shopping continues to grow, return rates are likely to remain high, particularly in the apparel sector. However, the landscape of returns management is poised to evolve significantly due to technological advancements and changing consumer preferences.
Enhanced Personalization:
- AI-Driven Personalization: Future advancements in AI will enable more precise personalization of shopping experiences, potentially reducing returns. By analyzing individual customer preferences and past behaviors, retailers can offer highly tailored product recommendations that are more likely to meet expectations.
- Dynamic Inventory Management: Improved inventory management systems that provide real-time updates will help retailers better manage stock levels and product availability, reducing over-ordering and subsequent returns. Real-time insights can also enable quicker response times for restocking returned items.
Emerging Trends That Could Influence Consumer Behavior
- Eco-Conscious Consumers: As consumers become more eco-conscious, there will be a higher demand for sustainable return practices. Retailers might see an increase in programs that encourage returns for recycling or repurposing, such as discounts on future purchases for returning old items.
- Shift to Renting and Subscriptions: The growing popularity of clothing rental services and subscription boxes can reduce return rates by offering flexible and temporary ownership options. Companies like Rent the Runway and Stitch Fix exemplify this trend, allowing customers to try and return items with ease as part of their service.
- Blockchain for Supply Chain Transparency:
- Enhanced Transparency: Blockchain technology can provide unprecedented transparency in the supply chain, ensuring authenticity and reducing fraud. This transparency can enhance customer trust and reduce returns caused by counterfeit or misrepresented products.
How Retailers Can Adapt to Future Challenges in Returns Management
- Personalized Follow-Ups: Implementing proactive customer service strategies, such as personalized follow-up emails and post-purchase check-ins, can address potential issues before they result in returns. Engaging with customers to confirm satisfaction or offer assistance with products can reduce return rates.
- Dynamic Return Policies: Developing flexible return policies that adapt to different customer segments and purchase behaviors can improve satisfaction while managing costs. For instance, offering extended return windows during holiday seasons or for high-value customers can enhance loyalty without significantly impacting profitability.
- Data-Driven Insights: Utilizing customer data to gain insights into return behaviors and preferences can inform better product development and marketing strategies. Analyzing data on why products are returned can help identify areas for improvement, such as sizing accuracy or product descriptions.
Embracing these future trends and strategies means that retailers can better manage returns, enhance customer satisfaction, and maintain a competitive edge in the evolving ecommerce landscape.
Even better? ReadyReturns equips Shopify store owners with the tools needed to stay ahead, offering features like automated return processes, customer-generated shipping labels, and detailed reporting for effective returns management.
Manage Shopify Returns Better with ReadyReturns
Understanding and managing apparel returns on Shopify is essential for success in the ecommerce world. Bracketing, where customers purchase multiple variations of a product to return those that don’t fit, has become a significant trend in online shopping.
In 2024, return rates on Shopify have surged, driven by consumer behavior and high expectations. To address this, we examined the financial impact of returns, the psychological factors behind bracketing, and strategies to reduce return rates.
Embracing advanced product descriptions, AI-driven size recommendations, and clear return policies are crucial. We also explored future trends like sustainability, second-hand shopping, and technological innovations that can transform returns management.
ReadyCloud and ReadyReturns can help you streamline and automate your Shopify store by providing a comprehensive suite of tools designed to streamline returns management and drive business growth.
With features like automated return approvals, customer-generated shipping labels, and detailed reporting, ReadyReturns simplifies the return process, making it more efficient and cost-effective.
Growing businesses on Shopify, Shopify Plus and Headless can track customer interactions, personalize communications, track Tasks, improve customer retention, and even add Shipping Insurance, in just a few clicks in the dashboard.
ReadyShipper X streamlines shipping logistics, ensuring orders are fulfilled quickly and accurately, while ReadyReturns makes it virtually effortless to handle Shopify returns for both customers and businesses, reducing friction and enhancing the post-purchase experience.
Integrating ReadyCloud with your Shopify store ensures that all aspects of your ecommerce operations are optimized, leading to increased efficiency, customer satisfaction, and growth.
Getting started with ReadyCloud is straightforward. Sign Up for a free trial and easily connect it to your Shopify store to begin leveraging these advanced features right now.