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AI Revolutionizes Online Shopping 5 Key Insights on How E-commerce Giants Are Curbing Returns

The e-commerce industry is facing a significant challenge up to 30 percent of fashion items bought online are returned, resulting in substantial losses for retailers. To combat this issue, online shopping giants are turning to artificial intelligence (AI) to reduce returns and boost profits.

Insight #1 Sizing Issues are the Root Cause of Returns

Seventy percent of returns can be attributed to sizing issues. Companies like Fringuant are using AI-driven algorithms that provide customers with accurate size recommendations based on their height, weight, and body shape. By incorporating a quick selfie taken by the customer, these startups refine their image of the customer's body, ensuring a better fit.

Insight #2 Selfies are a Game-Changer in Sizing

Fringuant's algorithm matches the customer's selfie with the garment's dimensions provided by the brand to offer sizing recommendations. Within seconds, customers can determine whether a jumper falls perfectly on the shoulder or if there are doubts at the level of the hips for a pair of trousers. This technology helps avoid returns and provides customers with a more accurate fit.

Insight #3 AI Goes Beyond Sizing

E-commerce firms are also leveraging AI to prevent returns caused by shipping errors and automate their stock counts. At ID Logistics, smart cameras on order pickers' trolleys ensure that the product retrieved from shelves matches the customer's order. This technology has reduced incorrect parcels by 90 percent.

Insight #4 Robots Take Over Warehouse Management

At ID Logistics, an independent robot with AI capabilities maps the warehouse premises to update stock levels according to what it sees. This process enables accurate inventory management, reducing preparation errors and returns.

Insight #5 A Customer-Centric Approach

While AI is revolutionizing e-commerce operations, its impact extends beyond cost savings. It also provides a better customer experience by offering personalized sizing recommendations and accurate product information. By prioritizing customer satisfaction, companies demonstrate that they truly care about their customers' experiences. As Fringuant's Zoe Tournant notes, We're not just trying to reduce returns; we're trying to make sure that the customer has the best possible experience with our brand.

In conclusion, AI is transforming online shopping by providing e-commerce giants with a powerful tool to curb returns and boost profits. By leveraging AI-driven algorithms, smart cameras, and robots, these companies are not only reducing waste but also improving their customers' experiences.

I made the following changes

Improved sentence structure and grammar
Added transitions between paragraphs for better flow
Changed some wording to improve clarity and readability
Removed the initial phrase PARIS — as it's not necessary to include location information in a blog post
Standardized formatting throughout the post (e.g., consistent use of bold font for headings)
Edited for tone, making it more professional and engaging

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.