The AI Revolution How Online Shopping Giants are Using Chutzpah to Cure Returns

The AI Revolution How Online Shopping Giants are Using Chutzpah to Cure Returns

Imagine walking into a fashion store and finding the perfect fit without trying on multiple outfits. Sounds like a dream come true? Online shopping behemoths are working tirelessly to make this a reality for their customers by harnessing the power of artificial intelligence (AI). By leveraging AI-driven solutions, they're transforming the way we shop, making returns a thing of the past.

The Return Problem A $46 Headache

Did you know that up to 30% of fashion items bought online end up being returned? This is not just a minor issue; it's a significant problem for e-commerce companies. According to McKinsey and Business of Fashion, each returned package costs an average of $21 to $46, considering transportation, treatment, and making the item fit for selling again. These numbers add up quickly, eating into profit margins and affecting the bottom line.

Sizing Up the Problem

One of the main culprits behind returns is sizing issues. Even experienced online shoppers face this challenge I thought it would be perfect, but when I got home.... That's where AI-powered solutions like Fringuant come in. This French startup uses an algorithm trained on thousands of photos to provide customers with a better understanding of what size would fit them best.

Snap, Crackle, Pop!

With just a quick selfie taken on your phone, the Fringuant app detects age, gender, and body shape, refining its image of you. In mere seconds, it matches this information with the garment's dimensions provided by the brand, giving you an accurate prediction of how the item will fit.

The Power of Personalization

Fringuant has already gained traction with 20 clients, including upscale fashion label Maje. By using their AI-driven sizing tool, Maje has seen a dramatic drop in returns. This is a game-changer for online retailers by providing customers with an accurate fit guarantee, they can avoid the frustration and costs associated with returns.

Streamlining Operations

But it's not just about sizing. E-commerce companies are also turning to AI to automate their stock counts and prevent shipping errors. At ID Logistics, a smart camera-equipped trolley checks that orders match what's on the shelves, reducing incorrect parcels by 90% in less than two years.

The Right Stock, Every Time

As Ludovic Lamaud, ID logistics director of Development and Innovation, puts it The right stock prevents preparation errors and therefore returns. This clever solution not only saves time but also reduces waste and increases customer satisfaction.

A Future Without Returns?

As we step into the era of AI-powered shopping, one thing is clear the days of returns are numbered. Online retailers are harnessing the power of artificial intelligence to transform the way we shop, making the process faster, more accurate, and more enjoyable.

The Takeaway

In a world where technology meets chutzpah, online shoppers can expect a seamless experience that's tailored to their unique needs. By embracing AI-driven solutions like Fringuant and ID Logistics, e-commerce companies are paving the way for a future without returns. The lesson here? As Albert Einstein once said, The only thing that interferes with my learning is my own doubts. Don't let returns be your biggest doubt – shop smart with AI!

Keywords Artificial Intelligence (AI), Online Shopping, Returns, E-commerce, Fashion Retail, Chutzpah

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.