EP330:How eComID Is Helping Ecommerce Retailers Reduces Returns Through Better CX - CEO Interview

"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 neededRetailers 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