BFC commissions report to help address the issue of e-commerce returns

The British Fashion Council (BFC) has commissioned global strategists Roland Berger, to conduct a study in collaboration with DHL to address the issue of boosting e-commerce returns in the fashion industry.

The study will be issued before the end of this year as a component of the BFC’s Institute of Positive Fashion (IPF), which drives the council’s commitment to climate change.

According to Siobhan Gehin, head of Roland Berger’s UK retail and consumer products group increased returns will cost the British fashion sector £7 billion this year.

Gehin added that returns constitute a severe threat for the sector, with the online fashion set to surpass brick and store sales by 2024. The cost to the British fashion sector this year will be at least £7 billion due to the fact that every third item purchased online in the UK is returned. It’s crucial to find strategies to preserve value in the company and keep returns out of landfills.

Reverse logistics is mostly to blame for the unnecessary CO2 emissions that occur when around 3% of returns can’t be resold and frequently wind up in landfills. According to Roland Berger, there are further “hidden” expenses as well, such as the 10% that the strategy allocates to the approval of fraudulent returns (such as “wardrobing,” which is the practice of purchasing with the intention of returning it after one wear).

In accordance with UN objectives and UK government agreements, the BFC is developing a 10-year strategy through the IPF to help the sector decrease its impact on the environment and society. The plan will involve adapting business models and operational procedures across the whole sector.

BFC CEO, Caroline Rush, said that they’re thrilled to partner with Roland Berger to find a solution to the direct and hidden costs and effects connected with returns in the UK. This initiative acknowledges the value of investing in innovation to build strong, successful businesses while protecting society and the environment.

In an effort to address the issue, a number of well-known fashion brands have enacted a fee for e-commerce returns. Global powerhouse Zara now charges £1.95 for internet returns, even though store returns are free. Online fast fashion retailer Boohoo has recently instituted a £1.99 return fee.