Online shoppers return more than a third of clothing and shoe purchases, mostly because of sizing problems. As a result, companies are being forced to impose harsher return policies in order to save money. According to the most recent Return Prime data, 17.6 per cent of all online products are returned, and that percentage can go as high as 30–35 per cent in certain categories like clothing and shoes.
Poor consumer returns experiences cost brand stores an average of 8 per cent of their annual potential for recurring business. Furthermore, size concerns account for almost 40 per cent of returns of merchandise, including shoes and clothes.
“Returns continue to be a huge hassle for e-commerce brands, hindering their path to profitability. Our algorithms help turn returns into exchanges with unique incentives to the shoppers, thereby reducing losses,” said Sashwat Swaroop, founder of the online return platform Return Prime, adding that by automating the entire returns process, it ensures faster processing of returns and lower operational costs.
With 19.1 per cent of online orders returned, Maharashtra has the highest rate of return followed by Karnataka (11.5 per cent), Delhi (9.9 per cent), Uttar Pradesh (8.7 per cent), and Maharashtra (19.1 per cent). Kerala has the lowest return rate—1.9 per cent—followed by Andhra Pradesh (3.1 per cent), Madhya Pradesh (2.6 per cent), Punjab (2.9 per cent), and Kerala (2.9 per cent).
Top brands are attempting to revert their liberal easy returns policies due to the rising cost of returns. In order to discourage returns, they impose a fee for returns, reduce the time frame for returns, raise the cost of logistics, roll back refunds to the original payment method, and offer discounts.
By 2025, returns could cost brands as much as US $ 20–30 billion in revenue. The following year, returns might reach as high as 40 per cent due to e-commerce’s extensive penetration into India’s more distant areas.
