By C. Perera, JadeTimes News
Online shoppers return more than a third of clothing and footwear purchases, predominantly due to sizing issues, leading companies to implement stricter return policies to cut costs. Recent data from Return Prime reveals that 17.6% of all online products are returned, with the rate reaching 30 35% in categories like clothing and shoes.
Poor returns experiences cost brand stores an average of 8% of their annual potential for repeat business. Sizing issues account for nearly 40% of returns in apparel and footwear.
“Returns remain a significant challenge for e commerce brands, impacting profitability. Our algorithms facilitate exchanges by offering unique incentives to shoppers, reducing losses,” said Sashwat Swaroop, founder of Return Prime. Automating the returns process ensures quicker processing and lower operational costs.
Maharashtra leads with a 19.1% return rate, followed by Karnataka , Delhi, and Uttar Pradesh. Kerala has the lowest return rate at 1.9%, followed by Andhra Pradesh , Madhya Pradesh and Punjab.
Top brands are re evaluating their lenient return policies due to rising costs. To discourage returns, they impose fees, shorten return windows, increase logistics costs, limit refunds to store credit, and offer discounts. by 2025, returns could cost brands $20-30 billion in revenue. With the deepening reach of ecommerce in India, return rates might soar to 40% the following year.
