High return rates remain a challenge for Zalando and the entire fashion industry. The platform is introducing an alert system and taking action against shoppers with disproportionately high return rates.
Warning email
Ever since its inception in 2008, Zalando has had an accommodating returns policy. Inevitably, this sometimes leads to abuse: “While most customers use our returns policy responsibly, some, unfortunately, don’t.” Therefore, the company has to take measures.
A first intervention is to set up an alert system: customers with disproportionately high return rate will receive a warning email, to give them a chance to adjust their behaviour. If that does not show improvement, an account can be suspended for twelve months. This concerns a small fraction of the customer base, Zalando stresses. For the vast majority, nothing will change.
The platform itself is also taking initiatives to reduce the number of returns, such as improved product information with videos, 360º photos, more detailed product descriptions and augmented reality fitting experiences. Shoppers receive personalised sizing advice based on their buying behaviour and body measurements. Soon Zalando will also introduce a virtual fitting room where customers can create a 3D avatar of themselves to see how different sizes of an item look on them.
