Fashion Brand
-39%
REDUCTION IN SHIPPING FEES
-51%
REDUCTION IN RETURNS
+25%
INCREASE IN PROFIT
THE BRAND:
An online DTC women's fashion brand came to us looking to increase their profitability. Sales were already strong and customer loyalty was high, but the bottom line wasn’t where it should be. The brand has a strong online presence and a dedicated customer base - there was so much this brand was doing right.
An online DTC women's fashion brand came to us looking to increase their profitability. Sales were already strong and customer loyalty was high, but the bottom line wasn’t where it should be. The brand has a strong online presence and a dedicated customer base - there was so much this brand was doing right.
THE CHALLENGE:
THE CHALLENGE:
Digging into the company data, we found that the sales and revenue numbers were strong. The company had a good idea of who its ideal customers were and was doing a good job at retaining them.
The real problem the brand faced was around profitability. With its strong performance from a customer acquisition, conversion and retention perspective, they were struggling to understand where they were going wrong.
Going further into the data, the problem became obvious - around 30% of all orders were being returned. Looking into the reasons for the returns showed us that the majority of returns were due to sizing issues. To compound the problem, due to customers ordering multiple sizes, nearly all orders qualified for free shipping as well as the brand offering free returns. This is great for the customer, but was really hurting the brand's profit figures.
Further compounding this problem, having to carry so much stock meant that the brand was struggling with cash flow, leaving them struggling to invest further in their growth.
These problems are not uncommon for fashion brands, however we knew that we could reduce the number of returns significantly as well as free up cash for the brand to invest in further growth and expansion.
with better sizing guidance, a review of the free shipping threshold, and a different approach to the returns experience.
THE SOLUTION:
Digging into the company data, we found that the sales and revenue numbers were strong. The company had a good idea of who its ideal customers were and was doing a good job at retaining them.
The real problem the brand faced was around profitability. With its strong performance from a customer acquisition, conversion and retention perspective, they were struggling to understand where they were going wrong.
Going further into the data, the problem became obvious - around 30% of all orders were being returned. Looking into the reasons for the returns showed us that the majority of returns were due to sizing issues. To compound the problem, due to customers ordering multiple sizes, nearly all orders qualified for free shipping as well as the brand offering free returns. This is great for the customer, but was really hurting the brand's profit figures.
Further compounding this problem, having to carry so much stock meant that the brand was struggling with cash flow, leaving them struggling to invest further in their growth.
These problems are not uncommon for fashion brands, however we knew that we could reduce the number of returns significantly as well as free up cash for the brand to invest in further growth and expansion.
with better sizing guidance, a review of the free shipping threshold, and a different approach to the returns experience.
THE RESULTS:
-39%
REDUCTION IN SHIPPING FEES
-51%
REDUCTION IN RETURNS
+25%
INCREASE IN PROFIT
Working together, we reduced returns by more than 50% which led to a huge improvement in profitability due to decreased refunds, shipping, and transaction fees. Cash flow also improved as a result of the brand not needing to carry so much stock. This allowed the brand to focus on refining their marketing strategy, delivering an increase in new customers as well as seeing an improvement in repeat customers with the freshly available cash.