Discover strategies to handle bracketing during peak season, from optimizing returns processes to enhancing customer experience. Stay ahead of costly returns and boost your retail efficiency during the holiday rush.
Audio reader
Bracketing is the modern-day equivalent of bringing an entire changing room home. And we do it in-store, so why can’t we do it from the comfort of our own homes? Consumers order multiple sizes, colors, or variations of a product, try them on, and return what doesn’t make the cut. On the surface, it’s a harmless habit, championing convenience and flexibility. But behind the scenes? It’s a logistical nightmare for retailers, an operational strain on fulfillment providers, and a growing headache for sustainability efforts. But how do we get around it? And how do we provide consumers with the choice and flexibility they’re used to, without creating a dangerous cycle of try now and buy never?
Let’s explore why bracketing is on the rise, how it impacts fulfillment and profitability, and the strategies retailers can use to curb it without alienating customers. For an in-depth guide on tackling bracketing head-on, download our free eBook: How to Manage Bracketing.
Why is bracketing on the rise?
1. The online shopping experience
Unlike brick-and-mortar stores, eCommerce lacks the tactile experience. Customers can’t try before they buy, so they compensate by buying more with the intention of returning the excess. And with Buy Now, Pay Later options, consumers can do this without even being out of pocket. A 2023 study by Narvar found that nearly 60% of online shoppers admit to bracketing regularly.
2. Free and easy returns culture
Retailers have conditioned consumers to expect hassle-free returns. Free returns, pre-paid labels, and lengthy return windows have created a low-risk mentality. In the US alone, return deliveries cost retailers $890 billion in 2024, according to the National Retail Federation (NRF).
3. Social media and influencer culture
Social media platforms have turned shopping into a performance. Haul videos, “get ready with me” trends, and influencer endorsements encourage impulsive bulk-buying. Many consumers bracket to ensure they get the ‘perfect’ fit for their next Instagram post. It also means that they don’t necessarily keep those ‘hauls’ either, which creates another argument around ethical influencing.
Some consumers are now engaging in ‘wardrobing’ and ‘staging’. A recent study found that 16% of shoppers admitted to purchasing clothing or footwear online with the intention of wearing them once for a social event before returning them. Similarly, others confessed to buying clothes purely to show off on social media, before sending them back. This short-term usage mentality contributes significantly to rising return rates and places even more strain on eCommerce fulfilment.
For more insights on consumer behaviors behind bracketing, check out our eBook: How to Manage Bracketing.
4. Generational shopping habits
Millennials and Gen Z are particularly prone to bracketing, as they prioritize flexibility and choice. According to the NRF, over 50% of Gen Z shoppers order multiple items with the intent to return at least some.
The hidden costs of bracketing
While consumers see bracketing as a harmless way to find the right product, retailers and fulfillment providers are footing the bill.
1. Rising return costs and logistics inefficiencies
Every returned item comes with hidden expenses: restocking fees, quality checks, repackaging, and, in some cases, total loss due to damage or obsolescence. Retailers that absorb return costs take a direct hit to margins, while those that pass costs onto customers risk abandonment.
Additionally, returns don’t move as efficiently as outbound deliveries. Items come back at unpredictable times, creating bottlenecks in warehouses. The NRF estimates that for every $1 billion in sales, the average retailer incurs $166 million in returns-related costs. Those are some eye-watering statistics.
2. The operational strain of processing unnecessary returns
Reverse logistics require extra warehouse space, increased labor, and more complex inventory management. Fulfillment teams must inspect returned items, sort them, and determine whether they can be resold. With peak-season return rates reaching up to 40% for fashion brands, this isn’t just a minor inconvenience - it’s a major operational drain.
3. The environmental impact of excessive returns
And let’s not forget about poor Mother Nature. Every return generates emissions from shipping and increases landfill waste when products can’t be resold. Fast fashion brands, in particular, struggle with the sustainability of high return rates. According to Optoro, 5 billion pounds of returned goods end up in US landfills each year, with an additional 16 million metric tons of CO2 emitted from returns-related transportation.
How retailers can reduce bracketing without losing customers
Bracketing isn’t going away anytime soon, but retailers can take proactive steps to mitigate its impact.
1. Improve product listings and sizing accuracy
We cannot stress this enough. Your product listing and sizing accuracy can completely alleviate the need for bracketing. ASOS does this particularly well, offering consumers a fit assistant; where they can choose brands they’ve purchased before and match the size to the new item they’re purchasing - including entering their height and weight. One of the main reasons customers bracket is uncertainty about fit and quality. Brands can reduce returns by:
- Offering detailed size guides with exact measurements.
- Incorporating AI-powered fit recommendation tools.
- Using high-quality images and videos to showcase product details.
- Including customer reviews with fit feedback.
A 2023 study by True Fit found that retailers who implemented AI-driven size guidance saw a 24% drop in return rates. That’s almost a quarter of your returns. Not to be sniffed at.
Want to learn how AI and automation can help combat bracketing? Download our eBook: How to Manage Bracketing.
2. Charge for returns selectively
Retailers must walk a fine line when implementing return fees. While free returns encourage purchasing, they also lead to excessive bracketing. According to Retail Insight Network, 52% of retailers continue to offer free returns, while the remaining 48% do not. Some approaches include:
- Offering free returns for exchanges, but charging for refunds.
- Introducing tiered return fees based on return volume.
- Implementing restocking fees on high-frequency return items.
Yes, you might lose customers based on this approach - but if they weren’t purchasing (and actually keeping those purchases) and constantly returning, is it really a loss?
3. Leverage data to identify and dissuade serial bracketers
Retailers can track return behaviors to flag excessive bracketing. Strategies to curb repeat offenders include:
- Implementing threshold-based limits, where customers who exceed a set return percentage receive nudges.
- Personalized pop-ups like, “We noticed you return a lot. Can we help you find the right fit?” (also known as subtly calling them out!)
- Encouraging customers to convert to store credit instead of refunds.
An investment into technology here means you’re armed with data to back you up. 86% of consumers say they’re willing to pay more to receive a superior customer experience - so provide it to them.
4. Offer virtual try-ons and Augmented Reality (AR) features
Tech-driven solutions can help customers make informed choices before buying. Brands like Warby Parker and Nike have successfully implemented AR-powered try-ons to reduce bracketing.
- Virtual fitting rooms allow customers to see how clothes might look before purchasing.
- 3D product previews give customers a more interactive look at items.
- AI-powered style matching helps recommend items based on previous purchases and browsing history, enhancing confidence in buying the right product the first time.
Retailers leveraging AR-driven technology have seen reductions in return rates, as customers can visualise products better before committing to a purchase. In fact, 56% of consumers reported that AR technology increases their confidence in a product's quality, and 61% preferred shopping at retailers that provide AR experiences. Implementing machine learning algorithms to refine size recommendations based on aggregated data can significantly improve customer satisfaction and lower return volumes.
5. Tighten return windows and policies
Retailers can curb bracketing by adjusting their return policies strategically:
- Shorter return windows incentivize quicker decisions, reducing the likelihood of extended bracketing.
- Requiring tags or undamaged packaging ensures products come back in resellable condition.
- Limiting free returns to loyalty members creates an incentive for commitment.
A smarter approach to bracketing
Bracketing is a symptom of evolving shopping habits, fuelled by digital convenience and changing consumer expectations. While it’s unlikely to disappear entirely, retailers can adopt smarter fulfillment strategies, leverage technology, and refine policies to manage its impact effectively.
By focusing on better product information, flexible but firm return policies, and operational efficiencies, brands can reduce the costly burden of bracketing while still delivering an outstanding customer experience. Because let’s be honest - consumers will always love the thrill of choice. The key is ensuring that choice doesn’t come at an unsustainable cost.
Want to get to grips with managing bracketing and its impact on eCommerce? Download our free eBook: How to Manage Bracketing for expert insights and strategies.
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