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Fashion ecommerce

Return Rate

Return rate is the percentage of orders that are returned by customers after purchase — a critical margin metric for fashion brands, where online apparel return rates average 25-40%.

What this means

Fashion has one of the highest return rates of any ecommerce category, driven by two distinct failure types: sizing failures (the garment doesn't fit as expected) and styling-decision failures (the garment fits but wasn't the right choice for the occasion, or doesn't work with what the shopper owns). Most industry analysis attributes the larger share of returns to styling-decision failures, not sizing. This distinction matters for how brands address returns. Sizing failures are addressed through better fit information and size guides. Styling-decision failures require better decision support at the point of purchase — helping the shopper choose correctly the first time, rather than fixing the fit after the fact.

Why it matters for fashion brands

Each returned fashion item costs $10-45 to process before accounting for depreciation. Most fashion returns are styling-decision failures, not product defects: the shopper bought the wrong thing for their occasion or wardrobe. AI stylists that help shoppers make better decisions upstream reduce returns downstream.

Related terms

Virtual Try-On (VTO) — Technology that lets shoppers see how a garment looks on their own body before buying. Holdout-Based Lift Report — A measurement method that isolates a tool's true incremental impact using a randomized control group. Full-Price Sell-Through — The percentage of inventory sold at original retail price, before markdowns or promotions.

See the return rate reduction use case

See how Elara reduces returns by improving the decision, not just the fit.