"It's not just about selling more; it's about selling smarter and more sustainably."

Oscar Rundqvist, CEO, eComID.

Summary:

High return rates are a significant challenge in fashion ecommerce, leading to financial losses and environmental harm. This podcast explores how innovative technology like eComID is helping the industry by reducing returns, personalising customer experiences and promoting sustainability.

The problem...

Returns are costly; retailers face expenses from shipping, inspecting and repackaging returned items. Additionally, unsellable returns often end up in landfills, contributing to environmental damage. It's estimated that returns cost retailers between $21 to $46 per item, highlighting the need for effective strategies to minimise them.

Change is needed

Retailers need better metrics to understand customer behaviour.

Traditional metrics like average order value (AOV) can be misleading. Instead, brands should focus on "kept order value," which reflects the revenue retained after returns. This shift in focus can lead to more accurate assessments of profitability and customer loyalty.

Emerging solutions like eCom ID offer innovative ways to tackle return issues. By creating a digital shopping passport, eComID stores individual preferences related to size, style and fit. This enables precise pre-purchase guidance and personalised size recommendations, reducing the likelihood of returns.

Data from post-purchase behaviour and return reason codes are invaluable for improving size accuracy and product fit. Brands like H&M have learned that systemic issues, such as inconsistent sizing, drive return rates. By incentivising detailed feedback, brands can refine their offerings and policies.

Innovative brands are experimenting with personalised return fees based on shopper history. This approach encourages mindful purchasing and supports sustainability by reducing unnecessary returns.

Reducing returns is not just about cutting costs; it's a step toward a more sustainable fashion industry. By utilising personalised, data-driven tools, brands can enhance customer experiences and build lasting loyalty.

Chapters:

[00:30] Introduction to Tech and Sustainability in Fashion

[02:40] Understanding eCom ID and Its Solutions

[07:10] Insights from H&M: The Returns Challenge

[12:45] Data Accuracy in Returns Management

[15:35] The Role of Size and Fit in E-commerce

[20:20] Measuring Success: Average Kept Order Value

[24:15] The Environmental Impact of Returns

[29:50] Future of Ecommerce: Agentic Commerce and Virtual Try-Ons

Why did we think this was an interesting episode?

Paul & James are regularly involved in ecommerce redesign projects, either in an advisory capacity or helping drive the design thinking.

This episode explores the reasons why brands decide to invest in a redesign:

• Brand refresh or a full rebrand.
• Brand elevation of the online UX e.g. premium positioning.
• Improved user journeys to fix legacy constraints.
• Outcome focused e.g. fix navigation and browse journeys.

It then teases out the justifications for redesign projects, sharing views on how design can and should be measured objectively.

James & Paul also dissect the intangible goal of many design projects: to elevate the brand positioning, to create a premium look & feel.

Goals like this need clear definition and framing to ensure the design outputs work towards a clear vision and execution. They also need tangible measurements of success, even if they're not conversion focused.

The key take-away is that design has to be measured, and the metrics you use need to be agreed upfront. If there are no hard & fast commercial success metrics like conversion and AOV, then take a sensible approach to measuring customer impact, for example customer satisfaction & NPS.

Chapters:

[00:30] Introduction to Redesign Metrics

[03:40] Understanding Brand Elevation

[06:10] Balancing Design and Ecommerce

[09:00] Defining a Premium Experience

[12:30] Measuring Redesign Success

[15:25] The Role of User Testing

[18:15] Navigating Redesign Challenges

[21:10] The Importance of KPIs

[22:46] Final Thoughts on Redesigns

"No-code is getting a lot better, and there's a lot of tools. No-code tools will soon start to drive personalisation and dynamic content. That's going to take off pretty quickly."

Navigating Ecommerce Technology Trends.

In the latest episode of our podcast, James and Paul share their views on how emerging technologies are reshaping the industry. From AI-driven content generation to dynamic personalisation and integrated loyalty programs, this episode offers helpful insights for anyone working in ecommerce.

What you'll get:

• How the latest ecommerce trends are impacting which technologies ecommerce teams are investing in.
• Practical advice for adapting your tech stack to leverage AI and personalisation for better customer experiences.
• The challenges and opportunities in delivering smarter CRM and loyalty strategies.
• Explanation of the vendors ecommerce teams are turning to to help improve their ability to execute.

Chapters:

[00:30] Emerging Ecommerce Trends and Tech Priorities

[03:30] AI in Content Generation and Product Data Management

[06:00] AI Governance and Data Compliance

[08:50] Dynamic Content and Personalisation in Ecommerce

[12:20] The Evolution of CRM and Loyalty Programs

[25:00] Data Analytics and Marketing Tracking Accuracy

Understanding these trends can help you make informed decisions on where to focus your budget and how to enhance your CX.

We hope you find it useful.