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Product returns and refunds: friction and costs

Business question
Why and how do our customers return their products, and at what cost?
What's at stake
For an online fashion retailer processing 24,000 returns a year: 1,248 to 2,496 avoidable returns eliminated a year, or $35k to $70k in return handling cost avoided.
Data required
Return history (reason, delay, channel), associated verbatims.
Sample result
Typology of return reasons with estimated cost per category and reduction levers.
Demo · 1 min
Illustrative scenario

Take an online fashion retailer processing 24,000 returns a year. Analyzing return reasons, timing and verbatims shows that over half of returns stem from inaccurate product pages and a poorly calibrated size guide.

MetricBeforeAfter
Avoidable returns / year12,48010,608
Share of avoidable returns52%48%
Handling cost of avoidable returns / year$349k$297k
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