The billion-pound question in fashion E-commerce: Investigating the anatomy of returns

Abstract

This study explores a critically under-researched aspect of Supply Chain Management (SCM), e-commerce returns in the fashion sector. By combining a comprehensive literature review with empirical data from the UK’s second-largest pure-play fashion retailer, the research offers new insights into the scale and drivers of fashion e-commerce returns. Using a mixed-methods approach, the study uncovers detailed patterns in returned items and the reasons behind consumer return behaviours, revealing the operational complexities these returns impose on reverse logistics processes. In 2022 alone, fashion returns cost the UK industry an estimated £7 billion, while contributing to 750,000 tonnes of CO2 emissions from discarded apparel. A novel framework is proposed to address the challenges associated with high-volume returns, providing practical strategies for improving returns management efficiency. The findings contribute significantly to the SCM field by offering empirical evidence on the specifics of fashion returns, an area previously lacking robust data. This paper not only fills this gap but also provides actionable insights for both academic research and industry practice. By focusing on the management of returns within fashion e-commerce, the study contributes to the development of more sustainable and efficient supply chain strategies, advancing current knowledge within SCM research.