The $1.75 Trillion Retail Ghost Economy - The lost retail revenue from sales returns, overstocks and out-of-stocks.

For a typical retailer, the losses are the equivalent of increasing revenue by 11.7 percent. Another way, retailers currently lose 11.7 percent of revenue due to the combined impact of overstocks, out-of-stocks and needless returns (preventable returns). Imagine adding $117 million for every $1B in retail sales.

At New York’s Fashion World it was discussed “Returned items is one of the biggest costs for online retailers, with return rates of 15-50% depending on the type of item, and 60% of the time that goods are returned, poor fit is cited as the reason.” 

Working with a globally recognised American fashion, apparel, design, fragrance retail company, offering consumers high end products including men’s, women’s and children’s apparel, sportswear, denim, and a range of licensed products such as accessories, jewellery, watches, fragrances and home furnishings, we worked with one full season (12 months) of their online eCommerce shopping data in its raw, uncleaned data format and solved this enigma. Read further to learn more...