Customers returning apparel they purchased online cost retailers $554 billion in 2017, and that figure could hit as high as $800 billion by 2020 if solutions aren’t found.
The problem of apparel returns has become so prevalent that there have even been startups formed to deal with the issue.
One of those, Happy Returns, which operates a network of physical return locations for items purchased online, says apparel returns happen in 30 per cent of cases. During holiday periods, that can reach 40 per cent.
It carries not only the financial impact but also environmental — many of these products end up in landfill, with estimates of up to 2.3 billion kilograms per year of returned goods being sent to landfill in the United States alone.
One Australian tech company, however, believes it has a solution — body measurement technology company MyFiziq (ASX:MYQ).
MyFiziq created a revolutionary technology that can accurately capture body measurements, for a range of use cases from personal fitness to the insurance and apparel sectors.
Its solution offers the ability to provide online or in-store accurate body measurements to the retailer to determine the correct size of garment to order – reducing the cost of returns and increasing convenience and engagement.
This content is produced by Star Investing in commercial partnership with MyFiziq. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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