Are online sizing tools really the best way for retailers to reduce returns?

13.10.13

ASOS Chief Executive Nick Robertson said a 1 percent fall in returns would immediately add 10 million pounds ($16 million)to the company’s bottom line. The debated ‘basket sealing’ offering off ‘Free Returns’ from online retailers is widely expected by US consumers and increasingly demanded by their UK counterparts- but with up to half of all clothes bought online being sent back is that up lift in sales actually damaged by increased returns?  

A wave of virtual fitting room, and sizing tech start-ups are attempting to minimise costly returns for retailers by personalising the shopping experience. But will consumers really want to reveal their vital statistics and go to the trouble of measuring themselves?  If you don’t have to return something then clearly that is a better experience than having to return something. In Online Jewellery we see an increasing number of shoppers coming in to our Flash Trash showroom to try before they buy, whilst we will continue to offer this service, ultimately we see a lower return rate in the jewellery that is most accurately and beautifully displayed in product and model shots. Good photography and video content remain key as ASOS’s popular catwalk feature proves. A huge selling point- thousands of young female shoppers can voyeristically see themselves sashaying down a runway. (I’d still rather see that and imagine it was me than see a digitised online model of myself in the dress.) House of Fraser is another retailer trialling size tech with their true fit tool, whilst Warby Parker offers an impressive 5 pairs, 5 days 100% free at home trial. (I cannot even begin to imagine what that is like to manage, chasing consumers to return the not 1 but 5 pairs) So as retailers scramble to deliver the most efficient omni-channel strategy what are the  return-reducing tools out there right now?

1) Sizing Tools

Companies like Fits.me create virtual fitting rooms for brands. I really don’t know how useful this is…how many women really want to measure themselves and store these details online? I can see a privacy leak scandal now….So I have to enter all of my measurements and then see a stranger’s body represent how it would look. ( see below) Whilst the tech is slick, the overall experience does not incentivise me to buy- I’d still rather go into a store, or take a risk and buy and return it. Perhaps new ‘luxury angled’ sizing tool start up Befittd will offer a better experience..

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( The Virtual Fitting Room on LK Bennett)

2) ShowRooms

E-commerce still only accounts for 15 percent of total garment sales. Just imagine if ASOS had a huge TopShop style Oxford Circus FlagShip, where you can try on until your heart’s content. Providing somewhere consumers can hang out, and feel cool (Apple Stores, Private Brand Member Clubsand try out products still seems the most viable option to link products online with a real life experience that is more than a packed high street store, overloaded with merchandise and a queue for the fitting rooms.  

( The Warby Parker Show Room)

3) Augmented Reality

 I love watching the steps company’s like Holtion and Blippar are taking to make enjoyable 3D digital experiences. Whilst that often means printing out a piece of paper with a barcode on for the webcam tool to use- the effects on screen are still pretty cool. The steps right now are not dissimilar from a virtual fitting service, but as the tech improves with projections and more I think this is an exciting tool to watch.

Holition Portfolio from Holition AR on Vimeo.

4) Social Approval Tools

My Instagram feed is full of people’s photos of themselves in dressing rooms..should they buy this dress or jumper? Apps like Go Try It On (recently acquired by Rent The Runway) allow users to vote on each others outfits, if you know 50 friends have liked that pair of shoes you just bought, im guessing your chances of keeping them is pretty high. The inclusion of social buttons on product pages or MADE’s customer review programme (that offers a £15 voucher code incentive for customers who share a photo of their Made purchases at home) is another social tool that counts.

 gotryiton

Consumers are increasingly uploading an image of the product they just bought to Instagram- tagging or @’ing the brand. If there was a way for the brand to not only like back but get it’s follower base to like the photo too- making it one of the most liked photos of the users page- then those thoughts of social approval and ‘cool points’ are definitely going to remove any  intention of returning. Maybe the solution for this lies in a specific affiliates network or own brand social platform with a gaming structure and rewards.. 

my flash trash pop up store

05.10.13

 
To Ireland this weekend where FLASH TRASH officially popped up at Dublin’s super trendy BT2 store. Nestled beside House of Holland and Ted Baker, You’ll find our neon, urban, candy shop of delights! Jewellery we curate from our coolest up and coming Flash Trash designers such as Alona, Mona Mara and of course Estella Bartlett, alongside our popular own brand 90’s label, Flash Trash Girl. With prices starting from 12 Euros there’s the perfect selection of fashion accessories to update your winter look and cute gifts for friends.  My own Irish mega babe mate, Laura Whitmore (below) popped by to see us for some rings before her Late Late Show appearance last night. 
laurawhitmorejewellery 
2 years after our first pop up shop back in October 2011, at Shoreditch House, BT2 becomes our third treasure box concession in a store. Flash Trash was the first online retailer to launch an instore concession in the UK at Oxygen Boutique where we used I-Touch’s locked on instagram to generate instore discounts for people who grammed and shared. Our popular presence in The W Hotel in London, earmarked the launch of Flash Trash in Shoreditch over at go-to boutique, 11 Boundary. We’ve got many more Treasure Boxes planned for the next 6 months, fancy one in a town near you ? Drop Jenni an email and tell us why and your city might be next! jennifer@myflashtrash.com 
xoxo

5 Awesome Things I saw on the Internet this week

29.09.13

From Instagram traction to pavement advertising attraction, check out the Top 5 things I stumbled upon this week!

1. I love this PHONE BLOKS idea from Dutch designer Dave Hakkens – mobile industry disruption and true, practical personalisation.

 
    2. Hipsters, wannabe hipsters, and just all around Brooklyn lovers can now purchase a genuine Piece of Brooklyn and in return $1 will be contributed to the Brooklyn Arts Council.  Nice update on the 90’s buy a piece of the moon/stars idea.   Travel concepts in general seem to translate really well commercially as I’ve experienced with my city bracelets.

 

 

3. Everyone is on instagram and every brand is trying to figure out ways to engage and convert followers. I think the gaming elements of instagram are exciting and there’s tons of brands experimenting with more than just giveaways. Australlian boutique hotel 1888 is giving a free stay away for anyone with over 10k followers, giving each follower a value of $40.

4. Fun visual ad from Brothers Landscaping. A fusion of street and community is a nice way to spread the love! We had a lot of people take a heart from our FLASH TRASH poster that went up around San Fran last year.

 

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5. Walk down Shoreditch High Street and you’ll no doubt stumble across some guerrilla advertising. Mainly stencils that are put down before a ‘flash clean’ so the pavement is branded with a message. Sea World did some fun ads like these using stencils and water which lasted for a while in the sunshine but what about a stencil you only see when it rains? Emerging from a HomeDepot Forum it’s never wet…perfect for a weather centric brand to define it’s marketing message.

If you don’t make things happen then things will happen to you. #amberattitudes

5 Things You Need to Know About Amazon

22.09.13

Last year E-commerce sales worldwide surpassed $1 trilion, Amazon made up 5% of those sales. The e-tail giant’s focus on speed and customer service has led it to become the most trusted retailer in the world. So what 5 thing’s should all e-com and retailers be aware of….

win (1535) Animated Gif on Giphy

1. Amazon Prime ( the company’s $79 per year, second day delivery programme) last year made up a third of Amazon’s US profits. via member fees and their purchases.  ‘Once you become a prime member your human nature takes over and you want to leverage that $79 a month as much as possible, buying across all categories more regularly’

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2. Amazon’s 89 Global logistics centres sit as locally as possible to urban areas, and are fitted with machinery that enable it to ship a product in less than 2.5 hours. This speed of delivery and built up consumer trust, enabled Amazon to process 306 items per second during last year’s holiday season.

3. AmazonFresh a same day grocery delivery service ( available in Seattle and California) is the foundation of a broader roll-out of the holy-grail of shipping- same day delivery. Bezos developed a service that would work- not because he suddenly wanted to become a full-service grocer, but because of how often people buy food.

miley cyrus (997) Animated Gif on Giphy

4. Third-party sellers now make up 40% of Amazon’s product sales. With Amazon generally taking 20% commission on each transaction, these sellers are incentivised to use Fulfilment by Amazon (FBA) rather than drop-shipping.

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5. As Amazon continues to evaluate the best way to deploy the bots from their $775 million buyout of Kiva Robots last year, could their continued drive to logistics monopoly lead to their next purchase being say UPS or USPS?

Pretty soon retailers with their online business are going to be faced with a choice. You’re not going to be able to compete with Amazon so you’re going to have to consider partnering with them and leveraging their network. Read more in the latest issue of Fast Company.

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