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FASHION BRAND
From high return rates and squeezed margins to stronger profits and a healthier cash position. Needing less stock on hand and fewer refunds, the brand now has the freedom to invest in smart, sustainable growth.
-39%
REDUCTION IN
SHIPPING FEES
-51%
REDUCTION
IN RETURNS
+25%
INCREASE
IN PROFITS
BRAND
THE
This independent online women’s fashion brand had all the right ingredients; strong sales, a loyal customer base, and a solid online presence.
With a growing community and products their customers loved, the brand had built real momentum. But behind the scenes, profitability wasn’t keeping pace with performance
THE
CHALLENGE
On the surface, everything looked good. Sales were strong, customers were loyal, and acquisition was working. But despite all the right signals, profitability was falling short and the team couldn’t figure out why.
When we dug into the data, the answer was clear. Nearly 30% of orders were being returned, most due to sizing issues. Many customers were ordering multiple sizes to try on at home, taking advantage of free shipping and free returns. Great for customer experience, but painful for margins.
The result? High return rates, squeezed profits, and a stock position that tied up too much cash. That made it hard for the brand to reinvest in growth, even with strong demand.
These challenges are common in fashion, but they’re far from unsolvable. With better sizing support, smarter incentives, and a more sustainable approach to returns, there was a clear path forward.
THE
SOLUTION
We started by confirming what was already working: strong sales, loyal customers, and solid customer acquisition. But the real problem was profitability, and the biggest culprit was obvious: returns.
With nearly 30% of orders coming back due to sizing issues, we introduced clearer sizing guidance to help customers choose more confidently and order fewer items per purchase. This alone began to ease the volume of returns.
We then reviewed the free shipping threshold, which was unintentionally rewarding over-ordering. By adjusting it, we encouraged more intentional buying behaviour, reducing shipping and return costs, and protecting margins.
As returns dropped, something else happened too. Fewer items 'on the road' meant the brand no longer had to hold as much stock. This freed up cash previously tied up in inventory, giving the business room to invest in growth. Profitability improved, cash flow stabilised, and the brand could finally move forward with confidence.
RESULTS
THE
Returns dropped by over 50%, leading to a significant boost in profitability by reducing refunds, shipping costs, and transaction fees.
With fewer items in circulation, the brand no longer needed to carry excess stock, freeing up cash that had previously been locked in inventory. That cash was reinvested into marketing, driving an increase in new customer acquisition and an uplift in repeat purchases.
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