Processing returns is costly and time-consuming for many e-commerce businesses, but for the fashion sector, it’s particularly problematic. The clothing and shoes category typically has the highest returns rate at around 30-40%11, driven by consumers ordering multiple sizes or colors of a product to try on at home before returning those they don’t want.
Now, European online marketplace Zalando12 is investing in technology to tackle the problem, recently announcing the acquisition of Swiss computer vision company, Fision13. It has a body scanning app that can generate precise body measurements to advise online customers of sizing. There is also a virtual dressing room product that enables customers to see how garments will fit on their body prior to purchase, using the concept of artificial intelligence online.
“Customers will get size advice earlier in their relationship with Zalando. At the same time, we can create a feedback loop between brands and consumers designed to drive customer loyalty, and in the long run, reduce waste” explained Stacia Carr, Zalando’s director of engineering13.