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The Cost of Returns

Writer: Maeve SullivanMaeve Sullivan

The retail industry is facing a returns crisis. In 2024, clothing emerged as the most returned category of online purchases, largely due to either inaccurate size and fit descriptions or bracketing behavior. 


The toll that this takes on apparel brands is enormous, with retailers losing on average between $21 and $46 per returned clothing item, as they must account for shipping, processing, and other related costs. Overall, retail returns were projected to reach $890 billion in 2024, with retailers reporting that a staggering 16.9% of total sales would end up being returned. 


Bracketing is a large contributor to this consumer behavior, especially within Gen Z customers. Bracketing is the practice of ordering multiple versions of a product, such as different sizes or colors, with the intention of returning the majority of the order. According to Vogue Business, 69% of Gen Z consumers engage in over-ordering with the intent to return items. This behavior shows a generational desire for convenience and customization, that allows style experimentation without long term commitment. 


As social media has become increasingly linked to consumer patterns, a lot of this behavior can be traced back to the rising desensitization to overconsumption, as seen by ‘try on hauls’ where viewers watch peers receive large amounts of clothing in the mail. 


The practice of ‘wardrobing’, as explained in The Atlantic, is the process of ordering clothing items to only wear once, before returning them to the brand. Social media has seemingly exacerbated this issue, with people dressing for photo opportunities and not wanting to be seen rewearing a garment. 


However, Gen Z has also expressed the desire for increased personalization and sustainability efforts within the fashion and retail landscape. As online shopping continues to adapt with technology, bracketing behavior can be slowed with the introduction of AI in order to improve size and fit processes for e-commerce. 


Virtual fit and try-on has the potential to show customers how every variation of a garment will look and fit on their individual bodies, without them actually making a purchase. Not only will this make customers' lives easier, but it will substantially reduce the toll that returns take on apparel brands, while providing valuable data about which products are most interacted with. 


While this technology cannot change the way that social media has influenced wardrobing tendencies, it can optimize the e-commerce experience for retailers and consumers alike as the Gen Z patterns continue to adapt. As customers order with more certainty and care, their wardrobe can once again become a more curated reflection of the things that they love. As social media pushes a revival of personal style, these tools will help consumers make the right purchases as cultural proclivities move away from performative ‘wardrobing.’ 


 
 
 

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