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How Online Shopping Giants Turn to AI to Cut Down on Returns The Battle Against Unsatisfying Fits
How Online Shopping Giants Turn to AI to Cut Down on Returns The Battle Against Unsatisfying Fits
How Online Shopping Giants Turn to AI to Cut Down on Returns The Battle Against Unsatisfying Fits
Returns are a major pain point for both customers and retailers in the e-commerce industry. According to statistics, a staggering 30% of fashion items purchased online are sent back, with sizing issues being the top reason. This not only leads to frustration for consumers but also eats away at profit margins for e-commerce giants.
To tackle this problem, online shopping behemoths have turned to artificial intelligence (AI) to revolutionize their businesses. From AI-driven sizing advice via selfies to robot stock-takers, AI is transforming the future of e-commerce and helping retailers reduce returns.
Sizing issues account for 70% of returns, making it a major challenge for online retailers. To address this problem, startups like Fringuant have developed AI-powered algorithms that use customer data, such as height, weight, and a quick selfie taken on their phone, to provide shoppers with a better idea of what size would fit them best.
We detect the customer's age, gender, and refine the image of their body fed into our AI model, says Zoe Tournant, CEO of Fringuant. Our model is trained for a year on thousands of photos. Within seconds, this model matches up with the garment's dimensions provided by the brand to advise shoppers whether a jumper falls perfectly on the shoulder or if there are doubts at the level of the hips for a pair of trousers.
Tournant claims that Fringuant has seen a significant reduction in returns among its clients, including upmarket womenswear label Maje. With AI-driven sizing advice, customers can avoid the frustration and cost associated with returning items that don't fit.
Zalando, one of Germany's largest online retailers, has also hopped on the AI bandwagon. Since July 2023, it has been using its own AI-powered sizing tool to help customers avoid returns by taking two photos of themselves wearing tight-fitting clothes. This innovative approach has already led to a significant reduction in returns.
But AI isn't just limited to sizing advice. E-commerce firms are also relying on AI to automate their stock counts and prevent shipping errors that can lead to returns. At ID Logistics, an order picker's trolley is equipped with a smart camera that checks the color or size of the product retrieved from the shelves matches the order.
This device immediately alerts the worker if they have picked up the wrong item, explains Ludovic Lamaud, Director of Development and Innovation at ID Logistics. In less than two years, this camera has reduced by 90% the number of incorrect parcels.
A robot that maps the warehouse premises using AI is also hard at work, processing 6,000 to 30,000 pallets a night. This robot updates the stock according to what it sees, preventing preparation errors and returns.
The right stock prevents preparation errors and therefore returns, says Lamaud. With AI-driven solutions like these, e-commerce giants are well on their way to reducing returns and improving customer satisfaction.
In an industry where returns can be a major sticking point, it takes a certain level of chutzpah for online retailers to boldly experiment with new technologies. By embracing AI-driven solutions, they're not only reducing waste but also showing customers that they care about their satisfaction above all else.
As the future of e-commerce continues to evolve, one thing is clear AI is here to stay and will play a crucial role in shaping the way we shop online. With its ability to provide personalized sizing advice, automate stock counts, and prevent shipping errors, AI is revolutionizing the industry and helping retailers reduce returns.
Conclusion
In conclusion, AI is transforming the e-commerce landscape by providing innovative solutions to common problems like returns. By embracing AI-driven technologies, online shopping giants can improve customer satisfaction, reduce waste, and increase profit margins. As the industry continues to evolve, it's clear that AI will play an increasingly important role in shaping the future of e-commerce.
Keywords AI, e-commerce, returns, sizing advice, selfies, robot stock-takers, ID Logistics, Zalando, Fringuant, Maje
