Returns Reduction Analytics

You can build a returns diagnostic tool for EU clothing brands that sits on top of the returns tools they already use, and sell it on the money it wins back.

There's a clear gap. Loop Returns, ReturnLogic, and Narvar help brands handle returns, but none of them tell you which product pages, sizes, or bundles are causing the losses.

The clearest sign of demand: European returns are high, fashion is worse, and return fees now come straight out of retailer margin. Zara and H&M already charge for returns in several EU markets.

The way in is software that explains cause: it tells a brand which changes are actually driving returns. It uses AI to cluster return reasons and free-text comments. You sell it as software plus a consulting retainer to mid-market clothing brands. They're too small for the big enterprise suites but big enough that returns really hurt.

• The pain is worst in clothing. German clothing returns usually run around 40 to 50%, and some sources say higher.
• About 45% of returns come from wrong size, fit, or colour. A lot of that you can fix before someone buys.
• AI size guidance does help, but only when shoppers actually fill in the details.
• The real commercial gap is telling brands why returns happen. Nobody needs another portal to process them.