Avoidance Practices within Returns Management : Indetifying Solutions and Assessing Feasibility for Reducing Returns in Fashion E-commerce

University essay from KTH/Skolan för industriell teknik och management (ITM)

Abstract: Returns in the fashion e-commerce industry have experienced a significant increase in recent years, and with the continuous growth of e-commerce, returns are expected to further increase. Companies are faced with the choice of either improving existing return processes or focusing on avoiding returns before a purchase is made. The purpose of this study was to identify methods for avoiding returns by examining returning behaviors and avoidance practices. The feasibility of these methods was investigated for a specific company in the premium segment, allowing conclusions to be drawn about their applicability for similar companies in the same segment. The results indicated that the suitability of a method often depended on how customers perceive the company's brand. Furthermore, the findings revealed a trade-off between providing extensive product information and the risk of damaging the brand image. By implementing suitable methods to avoid returns, the number of returns and associated costs can be reduced, while enhancing customer experience, satisfaction, and loyalty. Additionally, a reduction in returns can also mitigate the negative environmental impact caused by a high volume of returns.

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