In online fashion, returns are often viewed as a normal cost of doing business. But they are silently deleting your EBITDA. Sizing returns account for up to 70% of fashion returns, and their true cost stretches far beyond a return shipping label.
1. The Anatomy of a Return Expense
When a customer returns a $100 jacket because of fit, the brand loses much more than the shipping fee. The real cost includes:
- Two-Way Shipping: You pay $8 to ship it out and another $8-$10 for reverse transit.
- Processing Labor: Warehouse staff must open, inspect, re-fold, steam, and re-pack the garment (averaging $3.50 per unit).
- Packaging Loss: Polybags, custom stickers, and tissue papers are discarded.
- Inventory Freeze: A returned item takes 2-3 weeks to get back on the virtual shelf, missing its seasonal peak.
📊 Sizing Math Alert
Every single size exchange eats the net profit margin of three new sales. Sizing returns are not a logistics issue—they are a customer conversion leak.
2. Bracketing Behavior
Because sizing varies widely between brands, up to 63% of consumers engage in "bracketing"—buying a size Medium and a Large, keeping one, and returning the other. This intentionally forces a 50% return rate on those orders, inflating your shipping overhead.