Try This On for Size: Why US Fashion Retailers Must Not Dismiss True Sizing Technology

Given the growing returns crisis within the United States' e-commerce and apparel sector, the urgency to address the core issues cannot be overstated.

Why? Because a staggering 2.6 million tonnes of returned clothing have amassed in the country, signaling a critical juncture for retailers to rethink their strategies.

In 2023 alone, clothing returns soared to a staggering $743 billion, presenting a significant challenge for U.S. retailers, with a key contributor (53 percent) to this issue being the prevalent problem of incorrect sizing or fit.

Shoppers have been spoiled with access to free returns from retailers despite companies such as Macy's, Abercrombie & Fitch, J.Crew, and H&M starting to charge for returns.

This shift should act as a much-needed wake-up call for retailers to understand the root causes of returns and decide how they can reduce the number of returns without damaging customer value. It will take time for consumers to change their habits, as changing behavior is a challenging feat.

Complicating matters further, the U.S. finds itself implicated in the export of secondhand clothes to various nations across the globe, including Guatemala, Chile, India, and Ghana.

Experts argue that this practice is far from harmless recycling; rather, it emerges as a contentious factor contributing to what they term an "environmental and social emergency" in these recipient countries.

To address all these pressing concerns, a new law in Washington, along with similar laws in New York and California, has been introduced to help regulate the fast-fashion business to ensure long-term sustainability and transparency within the sector.

The law is set to take effect from Jan. 1, 2027, and fashion businesses must clarify their methods of tracking targets. Failure to comply with these requirements may result in penalties imposed by the state's Department of Ecology.

The repercussions of this intersection between the fast-fashion phenomenon and the global secondhand clothing trade underscore the pressing need for a comprehensive reevaluation of sustainable practices within the fashion industry.

Curbing the Returns Crisis With Tech

Is sizing technology the answer? Unfortunately, there's no silver bullet, but feature-rich, accurate and user-friendly sizing technology has the potential to significantly reduce clothing returns by an average of 20 percent and can increase the decision to purchase by 2.5 times.

While sizing technology can help customers make more accurate size selections, several factors contribute to clothing returns. Although not all of them can be addressed solely through sizing technology, e-commerce and apparel retailers should consider technology as a key weapon in their arsenal for combatting the returns crisis.

Four key factors are as follows:

1. Improved Size Recommendations: Comprehensive and advanced sizing technology, such as body scanning or virtual try-on applications, can provide increasingly precise size recommendations based on customers' unique body measurements. Helping customers choose the right size more accurately reduces the likelihood of receiving ill-fitting clothing and the need to return items ($743 billion). Moreover, the reduction in sizing-related returns diminishes the environmental footprint associated with the transportation and handling of returned goods, which contributes to lower carbon emissions and less waste in the overall supply chain.
2. Virtual Try-On: Virtual try-on technology allows users to visualize how a garment will look on them before making a purchase. This can give them a better sense of how the clothing will fit and look on their body shape, potentially reducing the chances of dissatisfaction upon receiving the product.
3. Customer Data Analysis to Support Sustainability: Retailers can analyze customer sizing data to identify patterns and trends. By understanding what sizes and styles are popular among their customer base, companies can optimize inventory levels and reduce overproduction. This minimizes waste and contributes to a more sustainable supply chain. Furthermore, reducing environmental impact can minimize operational costs and enhance brand reputation, helping to build long-term business viability.
4. Supply Chain Transparency: Sharing relevant information with customers about the sourcing, manufacturing and transportation of products enhances transparency. This transparency builds trust and loyalty, but also resonates with the 78 percent of U.S. consumers who prioritize sustainability, highlighting the importance of a sustainable lifestyle to them.

As we look towards the future, it's hoped that sizing technology could potentially help standardize sizing across different brands and retailers, ultimately fostering a more personalized and inclusive shopping experience. If customers can confidently rely on sizing information, they may be more likely to find the right fit — ultimately reducing the need to return items and boosting consumer and retailer confidence in the technology.

The United States is making strides in aligning fast-fashion with sustainability through initiatives like new legislation and advanced technology. While challenges remain, there's a noticeable shift toward more responsible practices in the fashion sector. The ongoing journey emphasizes the need for continuous efforts from both consumers and industry stakeholders to foster sustainability and drive systemic change.

Shingo Tsukamoto is the president and CEO of Japanese sizing technology specialist Makip.